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EUROPEAN COMMISSION

Brussels, 4.11.2026 SWD(2026) 698 final

COMMISSION STAFF WORKING DOCUMENT

Republic of Moldova 2026 Report

Accompanying the document

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

2026 Communication on EU enlargement policy

{COM(2026) 690 final} - {SWD(2026) 690 final} - {SWD(2026) 691 final} -

{SWD(2026) 692 final} - {SWD(2026) 693 final} - {SWD(2026) 694 final} - {SWD(2026) 695 final} - {SWD(2026) 696 final} - {SWD(2026) 697 final} -

{SWD(2026) 699 final} - {SWD(2026) 700 final}

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Table of Contents

1. INTRODUCTION ..................................................................................................................... 3

1.1 Context .............................................................................................................................. 3

1.2 Main findings of the report ................................................................................................. 4

1.3. State of play of the accession process ........................................................................... 23

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ................................ 24

2.1. Functioning of democratic institutions and public administration reform ....................... 24

2.1.1 Democracy......................................................................................................... 24

2.1.2. Public administration reform ............................................................................. 26

2.2 Rule of law and fundamental rights ................................................................................. 29

2.2.1 Chapter 23: Judiciary and fundamental rights ................................................... 29

2.2.2 Chapter 24: Justice, freedom and security ........................................................ 48

2.3. Economic criteria ........................................................................................................... 60

2.3.1. The existence of a functioning market economy .............................................. 60

2.3.2. The capacity to cope with competitive pressure and market forces within the Union ........................................................................................................... 67

2.4. Public procurement, statistics and financial control ....................................................... 69

Chapter 5 - Public procurement .................................................................................. 69

Chapter 18 – Statistics ............................................................................................... 70

Chapter 32 - Financial control .................................................................................... 72

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION ............................... 73

4. RESILIENCE, SECURITY AND DEFENCE ............................................................................... 74

5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP .............................................. 76

Chapter 1 - Free movement of goods......................................................................... 76

Chapter 2 - Freedom of movement for workers ......................................................... 77

Chapter 4 - Free movement of capital ........................................................................ 79

Chapter 6 - Company law ........................................................................................... 79

Chapter 7 - Intellectual property law ........................................................................... 80

Chapter 8 - Competition policy ................................................................................... 81

Chapter 9 - Financial services .................................................................................... 83

Chapter 28 - Consumer and health protection ........................................................... 83

Cluster 3: Competitiveness and inclusive growth .................................................................. 85

Chapter 10 - Digital transformation and media ........................................................... 85

Chapter 16 - Taxation ................................................................................................. 87

Chapter 17 - Economic and monetary policy ............................................................. 88

Chapter 19 - Social policy and employment ............................................................... 89

Chapter 20 - Enterprise and industrial policy ............................................................. 91

Chapter 25 - Science and research ............................................................................ 92

Chapter 26 - Education and culture ............................................................................ 93

Chapter 29 - Customs union ....................................................................................... 95

Cluster 4: The Green agenda and sustainable connectivity ................................................. 97

Chapter 14 - Transport policy ..................................................................................... 97

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Chapter 15 - Energy ................................................................................................... 99

Chapter 21 - Trans-European networks ................................................................... 100

Chapter 27 - Environment and climate change ........................................................ 101

Cluster 5: Resources, agriculture and cohesion ................................................................. 103

Chapter 11 - Agriculture and rural development ...................................................... 103

Chapter 12 - Food safety, veterinary and phytosanitary policy ................................ 104

Chapter 13 - Fisheries and aquaculture ................................................................... 106

Chapter 22 - Regional policy and coordination of structural instruments ................. 108

Chapter 33 - Financial and budgetary provisions ..................................................... 109

Cluster 6: External relations ................................................................................................ 110

Chapter 30 – External relations ................................................................................ 110

Chapter 31 - Foreign, security and defence policy ................................................... 111

ANNEX I – RELATIONS BETWEEN THE EU AND MOLDOVA ................................................. 113

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1. INTRODUCTION1

1.1 CONTEXT

The Republic of Moldova (‘Moldova’) has continued to progress on the path to EU accession since its application in 2022 and the formal opening of accession negotiations in June 2024. After concluding bilateral screening of the EU acquis in September 2025, the Commission has assessed all negotiating clusters as ready to be opened. Since then, cluster 1 (fundamentals) was formally opened at the Intergovernmental Conference on 15 June, followed by cluster 6 (external relations) on 14 July 2026 as well as cluster 2 (internal market) and cluster 3 (competitiveness and inclusive growth) on 13 October 2026.

EU accession is a strategic objective for Moldova, as anchored in its Constitution. The September 2025 parliamentary election reaffirmed the growing pro-EU sentiment. Nevertheless, a notable degree of political polarisation remains.

Moldova continues to face sustained and multi-faceted pressure by Russia and its proxies to destabilise the country, as well as significant challenges posed by Russia’s war of aggression against Ukraine. By autumn 2026, the number of airspace violations by Russia had more than doubled compared with 2025, underscoring the growing spillover of Russia’s war and increasing risks to Moldova’s security. Despite these challenges, Moldova has continued to prioritise EU- related reforms and alignment with EU standards, economic development and building up its democratic resilience. Moldova has set itself the goal of concluding accession negotiations by 2028 and joining the EU in 2030. The second EU-Moldova Summit was held in Brussels on 22 June 2026, showing the ever-closer ties between Moldova and the EU. Moldova has been very responsive in the context of the joint task force set up by the European Commission supporting Moldova to meet the interim benchmarks.

The Growth Plan for Moldova, worth EUR 1.9 billion, continues being implemented to support economic transformation and EU integration, and is underpinned by the Reform and Growth Facility. Moldova continues to implement the EU-Moldova Association Agreement (AA), including the Deep and Comprehensive Free Trade Area (DCFTA).

The EU remains fully committed to supporting Moldova’s sovereignty and territorial integrity as well as the peaceful resolution of the Transnistrian conflict, based on the sovereignty and territorial integrity of Moldova within its internationally recognised borders. The government has stepped up its efforts to advance the reintegration of the Transnistrian region. The DCFTA applies to the entire territory of Moldova.

1 This report covers the period from 1 September 2025 to 1 September 2026. It is based on input from a variety of

sources, including contributions from the government of the Republic of Moldova, EU Member States, European Parliament reports and information from various international and non-governmental organisations. It also includes the results of comparative assessments and indices produced by other stakeholders, in particular in the area of rule of law.

The report uses the following assessment scale to describe the state of play: early stage, some level of preparation, moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting period, it uses the following scale: backsliding, no progress, limited progress, some progress, good progress and very good progress. Where appropriate, interim steps have also been used.

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1.2 MAIN FINDINGS OF THE REPORT

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS

2.1 FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM

2.1.1 Democracy

The existing framework provides an adequate foundation for holding democratic elections, in line with international standards. In August 2026, the Central Electoral Commission adopted a new set of amendments to the Electoral Code, mainly aiming to transpose into law the Constitutional Court decision of 9 July 2026 pertaining to the Gagauzian regional electoral commission. Other amendments included provisions aimed at facilitating alternative electoral methods, including postal voting, and at strengthening campaign-finance oversight and the fight against new forms of illicit financing and misuse of public resources. Moldova should address all outstanding recommendations on these amendments, including by the Venice Commission.

Moldova continued to face unprecedented levels of foreign interference and has pursued efforts to address this issue, including by strengthening its legal framework and the capacities of the Centre for Strategic Communication and Countering Disinformation. As recommended by the Organisation for Security and Cooperation in Europe (OSCE) / Office for Democratic Institutions and Human Rights (ODIHR), Moldova could further strengthen transparency in its fight against disinformation and manipulative content. This may include measures like public reporting of the ‘take down requests’ sent to platforms or providing access to timely information to assist voters in independently assessing disinformation.

Parliament is able to exercise its powers in a generally effective way. The newly established standing committee on European integration and the adoption of the annual legislative plan aim to enhance legislative output. The adoption of the Code on the Organisation and Functioning of Parliament in April 2026 has raisedconcerns among the opposition and civil society with regards to the prohibitionon individual MPs switching parliamentary groups and the lack of safeguards against the excessive use of emergency procedures. Moldova has requested an opinion from the Venice Commission to assess the Code’s compliance with European standards. While progress was made in enhancing the transparency of parliamentary activities, further efforts are needed to increase parliamentary accountability and integrity. This includes improving the use of oversight tools, less resource to accelerated procedures, and adopting a code of conduct and ethics for members of parliament, as recommended by GRECO.

The institutions in charge of EU integration process are mostly in place. The 2025-2029 National Programme for the Accession of Moldova to the EU was updated in December 2025 with the addition of new reforms that need to be implemented on the accession path, distribution of institutional responsibilities and new mechanisms for monitoring progress.

The government has given the Bureau for European integration (BEI) the resources to coordinate EU accession policy. Additionally, steps were taken to improve coordination mechanisms for policy planning, including with the launch of the e-monitoring tool. Legislative provisions on the transparency of decision making should be implemented more efficiently. The capacity of ministries to systematically oversee policy implementation and address recommendations of independent institutions should be further strengthened. The dialogue between the central authorities and the Autonomous Territorial Unit of Gagauzia should continue.

Civil society, including human rights defenders,operate in an overall enabling environment. There is a regulatory framework governing the establishment and functioning of civil society organisations (CSOs) standards. While there has been an increase in the number of CSOs

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gaining access to funds through the percentage designation mechanism, the lack of financial sustainability remains the sector’s most important vulnerability. Further efforts by the government are needed to improve existing funding mechanisms and tax incentives to ensure long-term organisational development across the sector. While some gaps persisted in the consistent enabling of CSO’s participation in the legislative process, Moldova adopted in September 2026 a law on public participation in decision-making, that aims to facilitate the involvement of citizens and civil society in public consultations and guarantee their right to make recommendations.

Public administration reform

Moldova is moderately prepared in the area of public administration reform. Good progress has been made with the adoption in July 2026 of a new law on public institutions, the subsequent methodology for the evaluation of certain categories of public institutions in October 2026 (and of the concept for the salary reform. The local administration reform was relaunched with the aim of completing the process of amalgamating municipalities, significantly reducing their number, before the local elections in 2027. The effective implementation of this reform remains to be demonstrated. Other steps taken include adopting the new law on public participation in the decision-making process and improving fiscal sustainability by amending the law on public finance and fiscal responsibility. The first meeting of the newly established EU- Moldova PAR Subcommittee took place in June 2026.

The Commission’s recommendations from last year were largely implemented and remain mostly valid. In the coming year, Moldova should, in particular:

→ finalise the transparent reorganization of the central public institutions, with the aim of ensuring equal payment and status for all staff carrying out civil service tasks;

→ continue the reform of local self-governance by enhancing local administrative capacity, including by ensuring an appropriate level of fiscal autonomy, with the aim of delivering better public services and opportunities to foster local economic and social development;

→ ensure adherence to fiscal rules and improve budget transparency and accountability by substantially reducing the general actions budget line and revising the administrative budget classification.

Chapter 23: Judiciary and fundamental rights

Moldova is between having some level of and a moderate level of preparation and has made good progress in the area of the judiciary, the fight against corruption and fundamental rights.

Functioning of the judiciary

Moldova is moderately prepared in the area of the judiciary. The country made good progress in reforming the justice sector. The vetting of all sitting judges with leadership positions has been completed, and the vetting of candidates and prosecutors continued. Under the Superior Council of Magistrates and the Supreme Council of Prosecutors respectively, the selection and evaluation boards for judges and prosecutors are in full composition with vetted members, while appointments to the disciplinary boards for judges and prosecutors are nearing completion. Sufficient resources for these self-governing bodies must be guaranteed to enable them to operate effectively. With vetting of appeal judges moving forward, Moldova drafted a new legislative proposal to extend vetting to judges working on administrative and insolvency cases. Despite new appointments, the Supreme Court of Justice is still not operating at full capacity, which has been delaying the implementation of its new regulatory framework. The

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National Institute of Justice adopted a new Strategic Development Plan, which integrates the recommendations of the 2022 TAIEX review. In order to increase the practical effectiveness of the justice system, more efforts are needed to reduce the significant number of vacancies in the judiciary and further improve clearance rates, which will also ensure that the excessive length of proceedings is tackled across all areas.

The Commission’s recommendations from last year were partially implemented and some of them remain valid. In the coming year, Moldova should in particular:

→ finalise the vetting and appointment of judges and candidates, especially for the Supreme Court of Justice and anticorruption panels, and make substantial progress with vetting prosecutors from prosecutorial institutions, in particular specialised prosecutors’ offices;

→ implement a significant part of the Strategic Development Plan of the National Institute of Justice, develop and implement human resource strategies for the judiciary and prosecution services, further implement the judicial and prosecutorial maps and significantly improve clearance rates and disposition time in courts;

→ strengthen the autonomy and integrity of the prosecution service, including by finalising the implementation of a manual random case allocation system for prosecution and transition towards an electronic system of randomised allocation of cases for prosecutors based on strict and objective criteria, by removing the ex officio membership of the Minister of Justice in the Superior Council of Prosecutors at the end of 2027 .

Fight against corruption

Moldova is between having some and a moderate level of preparation in the fight against corruption and has made good progress. The track record has improved, including an increase in the overall number of prosecutions. More efforts are needed to proactively investigate corruption, and translate investigations into convictions, including at high level. A unified statistical system is needed to improve the accuracy of reported data. In December 2025, an amendment introduced the mandatory vetting of all judges of the specialised anticorruption panels, in line with last year’s recommendation. Moldova adopted amendments to the Criminal Procedural Code in June 2026, transferring some of APO’s competences to the National Anticorruption Centre (NAC), while retaining APO’s prosecutorial oversight. Merit-based, objective and transparent selection of the NAC leadership must be ensured in practice for future appointments. The powers of the Prosecutor General have been revised with the aim to safeguard the independence of APO. On the prevention of corruption, while the implementation of the National Programme on Integrity and Anticorruption (NIAP) 2024-2028 registered general progress, several indicators, in particular on governance and justice aspects, show a slight deterioration compared to 2024. Targeted risk assessments in vulnerable sectors are being developed, but Moldova should address corruption risks and improve integrity especially in SOEs and public institutions. Moldova aligned the legislation on whistleblower protection with the EU acquis, in line with 2025 recommendations.

The Commission’s recommendations from last year were partially implemented and some remain valid. In the coming year, Moldova should in particular:

→ deliver increasingly proactive and efficient anticorruption investigations to ensure an improved track record on investigations, prosecutions and final convictions at all levels with dissuasive sanctions and assets confiscation; and further strengthen the independence, integrity and operational capacity of prosecution services;

→ achieve substantial progress towards developing an integrated electronic case management system for law enforcement agencies and prosecution bodies, with a view to improving

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procedural cooperation and enhancing transparency, effectiveness and speed in criminal proceedings;

→ and provide sufficient resources for NAC and coordination between APO and NAC; adopt legislative amendments to ensure specialised anticorruption panels can adjudicate all high- level corruption cases;

Fundamental rights

The legislative and institutional framework is largely in place. Implementation of the national human rights action programme and programmes on gender equality and gender-based violence was enhanced following last year’s recommendations. Moldova has established an interinstitutional dialogue to increase the implementation rate of the People’s Advocate Office and the Equality Council recommendations. Detention and pre-trial police custody conditions remain a concern, as does the treatment of persons with disabilities in specialised institutions.

The number of judgments issued by the European Court of Human Rights (ECHR) concerning Moldova remains high, including the cases under enhanced supervision, and their execution rate should be improved. Moldova has developed a National Programme for the social inclusion of persons with disabilities. Efforts to strengthen procedural rights, the rights of victims of crime, the rights of persons belonging to national minorities, including Roma2, and combat gender- based violence need to continue.

The Commission’s recommendations from last year were partially implemented and therefore some remain valid. In the coming year, Moldova should in particular:

→ ensure that adequate resources are available to strengthen the independence and effectiveness of the Equality Council and the People’s Advocate Office;

→ step up safe deinstitutionalisation of persons with disabilities through community-based solutions;

→ increase the implementation rate of judgments issued by the ECHR, notably by improving detention and prison conditions by addressing the outstanding European Committee for the Prevention of Torture recommendations of 2023 and 2025; including by transferring the responsibilities of the penitentiary medical system from the Ministry of Justice and the medical services in pre-trial police custody from the Ministry of Internal Affairs, both to the Ministry of Health.

Freedom of expression and media freedom

Moldova is moderately prepared on freedom of expression and has made good progress, notably by extending ownership transparency to print and online media and by preparing amendments to the Audiovisual Media Services Code, to ensure further alignment with the European Media Freedom Act and with the Audiovisual Media Services Directive, in line with the 2025 recommendation. Media ownership concentration and political influence persist. While some progress has been achieved to enhance legal safeguards for protecting journalists, notably through the adoption of a law against Strategic Lawsuits against Public Participation (SLAPP) and an action plan on journalists’ security, further efforts are required to ensure systematic law enforcement investigations and consistent judicial follow-up. Journalists faced

2 In line with the terminology of European institutions, the umbrella term ‘Roma’ is used here to refer to a number of

different groups, without denying the specificities of these groups.

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mostly verbal abuse and online harassment and the number of cases of intimidation against them decreased.

The Commission’s recommendations from last year were largely implemented. In the coming year, Moldova should in particular:

→ Ensure the proper implementation of the new law on mass media, including the provisions regulating ownership transparency for print and online media;

→ Ensure adequate protection of journalists against intimidation and threats, through thorough law enforcement investigations and judicial follow-up of cases;

→ Adopt the amendments to the Audiovisual Media Services Code and ensure its full compliance with the relevant EU acquis, also to enable participation in the Creative Europe Media strand.

Chapter 24: Justice, freedom and security

Moldova is moderately prepared in the area of justice, freedom and security. Good progress was made during the reporting period by further aligning with the EU acquis, notably on preventing and combating trafficking in human beings, protecting victims, and in the field of migration and asylum. In parallel, the legal framework for investigation and prosecution of money laundering and other financial crimes was further enhanced and a roadmap of complementary measures to strengthen the entire financial crimes investigation system was adopted. Additionally, Moldova continued to implement its general home affairs strategy and updated all six sectoral development strategies for 2026-2030 covering organised crime, public order, safety, civil protection, migration and education/ethics/digitalisation. The legal framework for fighting cybercrime was strengthened by adopting several legal acts.

Moldova also enhanced operational capacities, especially on asset recovery. Consequently, Moldova has presented an improving track record across the different categories of crime, specifically on organised crime, money laundering, cybercrime, illicit drugs, and firearms trafficking. Capacity constraints across the board remain however a challenge for operational delivery. The continuation of strengthening of operational capacities remains essential to translate reforms into further tangible results. Moldova improved its interinstitutional cooperation and coordination and further intensified cooperation with EU agencies in the field.

In the field of migration, beyond progress on legal alignment, Moldova adopted an Integrated State Border Management Programme for 2025-2030 as well as a National Programme on Migration and Asylum for 2026-2030 in line with last year’s recommendations. Moldova should intensify efforts to address the continued occurrence of unfounded asylum applications by Moldovan nationals in EU Member States.

The Commission’s recommendations from last year were largely implemented. In the coming year, Moldova should in particular:

→ continue strengthening operational capacity, finalise the set-up of the single point of contact in line with data protection acquis, and continue improving the cooperation with EU Member States and EU institutions and agencies (including data exchange via SIENA and related collection, analysis and sharing across services, supported through the proactive use of information exchange tools);

→ further strengthen border controls and continue its preparations to adopt a Schengen Action Plan to set up a robust national Schengen governance system and appoint a Schengen coordinator;

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→ continue aligning its visa policy with the EU’s list of visa-required countries and strengthen the screening of visa-exempt third-country nationals, particularly those coming from countries presenting higher migration or security risks.

Fight against serious and organised crime

Moldova is moderately prepared in the fight against serious and organised crime. Good progress was made in this area, including through continued efforts to tackle firearms and drugs trafficking, demonstrating an improved track record in these areas. Moldova also increased its operational capacity to fight serious international crime, including through continuous participation in EMPACT and more qualitative data exchange with EU Member States. Additionally, it further aligned its drug-related legal framework with the EU acquis, covering the National Drug Observatory, the national early warning system, and new psychoactive substance classifications. Further work is needed to strengthen these structures and ensure adequate capacity to fully implement and enforce the improved legal framework.

Moldova also made good progress in the areas of financial crimes investigation, asset recovery and confiscation by strengthening the legal and institutional framework. This included adopting a revised law on preventing and combating money laundering and the financing of terrorism in June 2026, which addresses recommendations of the Financial Action Task Force (FATF) and the standards of the Egmont Group. Mechanisms for the fight against corruption, financial crime and organized crime were also strengthened, NAC was given the competence for serious financial crime, including stand-alone money laundering. Additionally, a national mechanism for parallel financial investigations was set up and Moldova operationalised a national register for seized assets and strengthened the mandate of the Criminal Assets Recovery Agency (CARA), which also saw a considerable increase in parallel financial investigations and seized assets.

The Commission’s recommendations from last year were partially implemented and therefore remain partly valid. In the coming year, Moldova should in particular:

→ further improve the track record of investigations, prosecutions and final judgments in all fields of serious and organised crime, including by strengthening the intelligence-led policing framework the interagency cooperation across all organised and serious crime categories;

→ further align with the EU acquis on money-laundering investigation and criminalisation and on asset recovery and confiscation, in particular Directive (EU) 2024/1260; Operationalise the national parallel-financial-investigation mechanism, strengthen FIU–NAC–Prosecution– CARA cooperation, and demonstrate measurable results in stand-alone money-laundering investigations, confiscation, enforcement and actual recovery of criminal assets;

→ Adopt the comprehensive national drug strategy (2026-2032); improve the capacity to detect monitor and exchange qualitative information by further capacitating the national early warning system and national drug observatory.

The existence of a functioning market economy

Moldova has some level of preparation and has made good progress in creating a functioning market economy. Authorities remain committed to macroeconomic stability and show good progress on economic governance, including through advancing the Reform Agenda implementation with a strong track record and submitting the third Economic Reform Programme in January 2026. Discussions are ongoing for a three-year IMF non-financing Policy Coordination Instrument (PCI). A close engagement with the IMF serves as an important anchor for macroeconomic and fiscal policies and provides a signal of reform commitment to international partners and investors. The economic rebound in 2025 slowed down during the first half of 2026, driven largely by the impact of the Middle East conflict and renewed upward

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pressure on energy prices and inflation, the current account deficit continues to remain wide, reflecting structural vulnerabilities and the cessation of electricity supply from the Transnistrian region. Moldova’s fiscal position weakened with a persistently high deficit and upward debt trajectory, while public investment execution remains weak. Fiscal structural reforms are progressing, particularly on public investment management and spending efficiency, though results have yet to materialise. The banking sector remains stable and well capitalised. Credit growth has been robust but financial intermediation remains low despite ample market liquidity. Efforts to improve the business environment are ongoing, notably through cutting red tape and streamlining business support programmes. The state-owned enterprise (SOE) reform is advancing gradually, however weak SOE governance remains a persistent challenge. The spillovers from Russia's war of aggression against Ukraine, a large informal economy, low labour force participation, and weak competition enforcement continue to weigh on domestic and foreign investment.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Moldova should, in particular:

→ pursue fiscal policy aimed at achieving prudent medium-term fiscal positions and ensuring debt sustainability, notably by further broadening the tax base, including by systematically streamlining tax expenditures and improving spending efficiency through the new spending reviews while implementing the medium-term debt management strategy by deepening the domestic government securities market and broadening the institutional investor base;

→ reduce the economy’s vulnerability to external shocks, including through diversifying its export base and reducing energy import dependence while accelerating progress on the implementation of the SOE reform, notably the triage implementation, accelerating steps to strengthen SOE governance, notably through the selection of independent SOE board members and reforming the Public Property Agency, and completing the full digitalisation of the public property register;

→ continue efforts to address low labour market participation and informal employment, including through increased active labour market measures and a reform of income taxation.

The capacity to cope with competitive pressure and market forces within the EU

Moldova has some level of preparation and has made good progress to cope with competitive pressures and market forces within the EU. The government has made further improvements in the quality of education and coverage of dual vocational training; however, ongoing labour shortages, persistently low FDI, and weak innovation continue to undermine competitiveness. Notable progress was achieved in energy security through higher domestic renewable energy production and deeper integration into the EU electricity grid. However investment gaps, particularly in quality infrastructure and transport, remain substantial. The economy continues its shift toward services from agriculture and industry despite industrial development efforts. Integration with the EU continues to deepen, but export performance remains constrained by a narrow, low-value-added base.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Moldova should, in particular:

→ address the skills mismatch, notably by increasing the coverage of dual vocational and educational training, adult and work-based learning and ensure greater employer involvement at all skill levels as well as regular public-private dialogue including with foreign investors;

→ increase public investment, including through the Growth Plan, especially in infrastructure

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supporting transport and cross border trade, energy security, and climate resilience;

→ step up measures to promote foreign direct investment, especially in the tradable sectors, and increase efforts to promote innovation, including through technology transfers and stronger linkages with foreign investors.

Chapter 5 - Public procurement

Moldova is between having some and a moderate level of preparation in the area of public procurement. Good progress has been made with the adoption of the new Law on public procurement and the Law on remedies and review procedures, as well as important amendments to the laws on utilities and the law on defence and security procurement, ensuring further alignment with the EU acquis. The implementation of the National Programme for the Development of the Public Procurement System for 2023-2027 has continued.

The Commission’s recommendations from last year were partially implemented. In the coming year, Moldova should, in particular:

→ finalise the implementing legislation necessary for the Law on public procurement;

→ implement the National Programme for the Development of the Public Procurement System, with a focus on professionalisation and centralisation;

→ finalise the development of a new electronic procurement system and make it operational.

Chapter 18 - Statistics

Moldova has some level of preparation in the area of statistics. The countrymade some progress in strengthening the legal and institutional framework for official statistics, and in modernising statistical production across several domains, while alignment in the macroeconomic statistics domain continued to lag. Staffing remained a constraint. Data transmission to Eurostat showed an upward trend.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ align the statistics produced with the EU acquis, particularly in the macroeconomic statistics domain;

→ expand the use of administrative and privately held data in the production of official statistics by concluding agreements with holders of administrative data to increase efficiency of statistical production and reduce response burden;

→ set up a functional statistical geodatabase on the basis of the 2024 population and housing census.

Chapter 32 - Financial control

Moldova is between having some and a moderate level of preparation in the area of financial control. Good progress was achieved, notably with the adoption of legal amendments strengthening the financial independence of the Court of Accounts as well as strengthening the anti-fraud coordination service (AFCOS) and the AFCOS network.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ further strengthen managerial accountability in public administration by increasing the delegation of authority in financial management and internal control, notably by adopting and implementing the Guide for the application of delegation standards within the public

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sector;

→ build capacity for auditing the use of EU funds, notably through filling vacant posts and implementing the training and certification programmes for internal auditors;

→ improve the implementation rate of the Court of Accounts’ recommendations across central administrative authorities and other relevant organisational structures.

CLUSTER 2: INTERNAL MARKET

Chapter 1 - Free movement of goods

Moldova is moderately prepared in the area of the free movement of goods. Good progress was made during the reporting period on both the horizontal framework and alignment with EU product acquis, however further efforts are required to ensure full and consistent implementation of the acquis in this chapter.

One of the Commission’s recommendations from last year is close to being fully implemented while the others were partially implemented and remain valid. In the coming year, Moldova should, in particular:

→ adopt and start implementing the Action Plan to ensure the consistent application of Articles 34-36 TFEU and Court of Justice of the European Union (CJEU) case law;

→ align with the EU acquis on Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) and Classification, Labelling, and Packaging of chemicals (CLP);

→ strengthen the capacity of the quality infrastructure, especially in standardisation, conformity assessment, accreditation and market surveillance, by implementing the follow-up actions outlined in the action plans adopted in the context of the ACAA process.

Chapter 2 - Freedom of movement for workers

Moldova is between having some and a moderate level of preparation in the area of freedom of movement for workers. Good progress was made during the reporting period by signing further social security coordination agreements with EU Member States (Slovakia) and continuing work to prepare for joining the European Network of Employment Services (EURES) upon accession, notably by establishing the national legal framework for EURES activities and designating the National Employment Agency (NEA) as the National Coordination Office (NCO). Moldova conducted a feasibility study for the introduction the European Health Insurance Card (EHIC).

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue alignment of national legislation with the EU acquis on free movement of workers, including access for EU citizens to the labour market and equal treatment of EU workers;

→ conclude additional agreements on social security coordination, in particular with EU Member States and provide gap analyses for the Regulations on social security coordination;

→ work to ensure technical and organisational measures, administrative and financial capacity and resources as well as development of IT infrastructure, systems and relevant databases for full participation in the EURES and the Electronic Exchange of Social Security Information (EESSI) system and the EHIC scheme.

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Chapter 3 - Right of establishment and freedom to provide services

Moldova is moderately prepared in the area of the right of establishment and freedom to provide services. Good progress was made, notably by further aligning with the Proportionality Test Directive, the EU Services Directive and the Directive on the recognition of professional qualifications.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue aligning its legal framework with the EU acquis on the mutual recognition of professional qualifications, especially with the minimum training requirements for professions benefiting from automatic recognition;

→ fully align national legislation with the Proportionality Test Directive;

→ fully align national sectoral legislation with the EU Services Directive.

Chapter 4 - Free movement of capital

Moldova is between a moderate and a good level of preparation in the area of free movement of capital. Limited progress was made during the reporting period, notably through measures to strengthen anti-money laundering and countering the financing of terrorism (AML/CFT) and the capacities of the Financial Intelligence Unit.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue the gradual liberalisation of capital movements, including for foreign exchange operations;

→ continue strengthening the institutional capacity of the Office for the Prevention and Combating of Money Laundering within the Financial Intelligence Unit, including through additional staff, and enforce sanctions for non-compliance with the beneficial ownership obligations;

→ advance alignment with the latest EU acquis on AML/CFT, including legislative and institutional reforms to facilitate AML/CFT regulation and supervision of virtual asset service providers, and address the remaining technical deficiencies identified by FATF.

Chapter 6 - Company law

Moldova is between having some and a moderate level of preparation in company law. Some progress was made during the reporting period, including the launch of the new State Register of Legal Entities, a strengthened Public Audit Oversight Council, and adoption of amendments to the Corporate Governance Code.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ further align legislation on insolvency and bankruptcy procedures with the EU acquis;

→ further align with the EU acquis on takeover bids, cross-border conversions, mergers and divisions, as well as shareholder rights;

→ align with the EU acquis on accounting, transparency and statutory audit and continue improving the capacity, independence and effectiveness of the audit oversight system.

Chapter 7 - Intellectual property law

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Moldova has between a moderate and good level of preparation in the area of intellectual property rights (IPR). Some progress was made during the reporting period, notably through legislative alignment, stronger institutional capacity, and better supervision of collective rights management. The State Agency on Intellectual Property (AGEPI) continued its cooperation with the European Union Intellectual Property Office (EUIPO).

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue to improve the alignment with the EU acquis on IPR, including on designs and trademarks with a particular attention to establishing an EU exhaustion of rights upon accession;

→ continue to adopt legislation to improve the enforcement of IPR, particularly by implementing the National Action Plan for ensuring the enforcement of IPR;

→ continue to improve collective rights management to safeguard appropriate royalty payments.

Chapter 8 – Competition policy

Moldova is between having some and a moderate level of preparation in the area of competition policy. Good progress was made during the reporting period, notably through a strengthened legislative framework, especially through the adoption of the State aid law in August, and a more consistent enforcement record.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ further align the legislative framework with the EU acquis on antitrust and mergers and on the level of fines which can be imposed;

→ further align the legislative framework and the existing State aid schemes with the EU acquis on State aid, including by ensuring that the State aid registry is updated and fully operational and by requiring all State aid, including de minimis aid, to be reported digitally;

→ continue to strengthen the administrative and institutional capacity of the Competition Council by ensuring sufficient resources, training and autonomy to effectively enforce competition laws.

Chapter 9 – Financial services

Moldova is between having some and a moderate level of preparation in the area of financial services. It made good progress in the reporting period by adopting central bank regulations, aiming to align with parts of the EU Capital Requirements Directive and Capital Requirements Regulation (CRD/CRR), as well as the laws on the crypto-asset market, investments firms and investment activities.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ advance efforts to align legislation with the EU acquis related to the regulation and supervision of the banking sector, including bank recovery and resolution and bank deposit guarantee schemes;

→ further advance efforts for alignment with the EU acquis on insurance and occupational pensions, including Solvency II and the Motor Insurance Directive;

→ intensify efforts to align legislation with the EU acquis on securities markets, investment

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funds and investment services, financial market infrastructure and digital finance.

Chapter 28 - Consumer and health protection

Moldova is between having some and a moderate level of preparation in consumer and health protection. Good progress was achieved on alignment with the EU General Product Safety acquis and with the EU public health acquis.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue to align the legal framework with the EU acquis on consumer protection and product safety, and improve the cooperation between the public institutions dealing with consumer protection;

→ advance alignment with the EU acquis on tobacco control and strengthen its effective implementation and enforcement;

→ continue to improve access to healthcare for the groups in most vulnerable situations (persons with disabilities, older people, Roma, women, as well as people with multiple layers of vulnerability) by continuing to invest in rural healthcare.

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH

Chapter 10 - Digital transformation and media

Moldova is moderately prepared in the area of digital transformation and media. Good progress was made, as the government continued to implement the Digital Transformation Strategy 2023-2030 and advanced on its key performance indicators. On 1 January 2026, Moldova joined the EU’s ‘Roam Like at Home’ area, after fully aligning with the EU roaming acquis. During the reporting period, Moldova also advanced legislative alignment with the EU requirements on electronic identification and digital services. Furthermore, 78% of government- to-business services were digitalised.

The Commission’s recommendations from last year were partially implemented and therefore remain largely valid. In the coming year, Moldova should, in particular:

→ ensure institutional capacity to continue implementing the priority areas under the Digital Transformation Strategy 2023-2030, in particular by further aligning legislation with EU data protection and cybersecurity standards, including the EU 5G Cybersecurity Toolbox;

→ ensure further alignment with the EU acquis on semiconductors;

→ improve the accessibility of public sector websites, mobile applications and audiovisual services for persons with physical, sensory and intellectual disabilities.

Chapter 16 - Taxation

Moldova has some level of preparation in taxation. Good progress was made in further aligning national legislation with the EU acquis in the areas of indirect and direct taxation, excise duties, and the digitalisation of tax administration services. On indirect taxation, Moldova implemented a phased increase of the VAT registration threshold and a VAT reverse charge mechanism for electricity and natural gas and clarified legal provisions to explicitly state that price discounts and rebates reduce the taxable VAT base, among other measures. In the area of excise duties, a comprehensive law aligning with six EU directives on excise duty structures and rates was adopted. On direct taxation, efforts were made on the interest and royalties, and the parent subsidiary directive. Moldova further improved its capacity in administrative

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cooperation and mutual assistance, notably by developing the framework for the recovery of tax claims.

The Commission’s recommendations from last year were partly implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ further align excise and VAT legislation with EU acquis to minimise competitive distortions and legal uncertainties and to prevent issues such as non-taxation, double taxation, tax evasion, and fraud;

→ strengthen procedures to limit tax avoidance and increase tax revenue, in particular by adopting provisions in line with the Anti-Tax Avoidance Directive (ATAD 1 and 2) and by implementing the roadmap on the BEPS minimum standards;

→ continue modernising the tax administration, notably by implementing the national Multiannual Development Programme and Action Plan (2025-2027) for the digital transformation of the State Tax Service and developing an automated compliance risk management system supporting voluntary and enforced compliance.

Chapter 17 - Economic and monetary policy

Moldova is between having some and a moderate level of preparation in economic and monetary policy and made good progress in the reporting period. Central bank governance has been strengthened in terms of personal independence and improving transparency and accountability. On fiscal governance, progress has been made by institutionalising spending reviews. Preparations for setting up an independent fiscal institution are advancing gradually, with a first assessment of its possible scope and mandate published. In January 2026, the country submitted its third Economic Reform Programme, which for the first time included a labour market and current account forecast, while capturing the macroeconomic and fiscal impact of the EU Growth Plan.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ strengthen the capacity to underpin the medium-term budgetary framework with a description of medium-term policy plans and their impact on public finances and further improve the capacity to produce macroeconomic and fiscal forecasts, including for long-term projections of expenditures required to conduct a debt sustainability analysis;

→ prepare and adopt the legislation for establishing an independent fiscal institution and start setting it up;

→ ensure that the public accounting system covers all sectors of general government and start generating accrual data in line with ESA 2010;

Chapter 19 - Social policy and employment

The country is moderately prepared in social policy and employment and made good progress during the reporting period. Alignment with the EU acquis continued and measures were taken to strengthen overall capacities and increase employment. The State Labour Inspectorate was significantly strengthened, by aligning its powers and mandate with the requirements of the relevant International Labour Organisation (ILO) conventions, including making unannounced inspection visits possible. In addition, social assistance reform continued.

The Commission’s recommendations from last year were largely implemented. In the coming year, Moldova should in particular:

→ fulfil the Reform Agenda steps on undeclared work and active labour market measures and

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continue the implementation of the reform of the State labour inspection;

→ ensure the unified Automated Information System for social services (eSocial) is operational and used by the Ministry of Labour and Social Protection and social workers;

→ continue alignment with the EU acquis on labour law, occupational safety and health, social protection and social inclusion, non-discrimination in employment and social policy and equality between women and men in employment and social policy, in cooperation with social partners.

Chapter 20 - Enterprise and industrial policy

Moldova is moderately prepared in enterprise and industrial policy. Good progress was made during the reporting period. Moldova continued implementing the National Programme for the Promotion of Entrepreneurship and Increasing Competitiveness for 2023-2027, the National Industrialisation Programme for 2024-2028 and the National Smart Specialisation Programme 2024-2027. Moldova made more limited progress in the implementation of the Programme on Administration of State Public Property for 2024-2027.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should in particular:

→ adopt an annual action plan or work programme with financial allocations for the implementation of the Industrial Strategy;

→ streamline support to SMEs by digitalising the national Entrepreneurship Development Organisation (ODA) processes and by strengthening its capacities in internal controls and risk management through the evaluation of all ODA programmes and implementing the resulting recommendations;

→ continue taking further steps towards aligning with the EU Late Payment Directive.

Chapter 25 - Science and research

Moldova is between a moderate and a good level of preparation in the area of science and research. Good progress was made during the reporting period. The government advanced the implementation of the National Programme for Research and Innovation 2024-2027 and started implementing the National Programme for Smart Specialisation 2024-2027 ’Smart Moldova’, with several project calls launched and strengthened Moldova’s integration into the European Research Area.

The Commission’s recommendations from last year were partly implemented and therefore remain valid. In the coming year, Moldova should in particular:

→ put in place structures to strengthen the research and innovation ecosystem and to improve reporting on research and innovation statistics, especially for the European Innovation Scoreboard;

→ increase the level of public investment in R&I towards the national target, and address the pending recommendations from the 2016 and 2021 Horizon policy support facility reviews, including on research career frameworks, open science and cooperation between the private and public sector;

→ increase the institutional and administrative capacity of the National Agency for Research and Development and integrate research performance indicators into institutional funding mechanisms.

Chapter 26 - Education and culture

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Moldova is between a moderate and a good level of preparation in the area of education and culture. Good progress was made during the reporting period. The amendments to the Education Code introduce financial autonomy for schools, strengthen academic integrity and provide a legislative framework for school network consolidation. Vocational education and training (VET) enrolment grew significantly, and dual VET expanded. The National Qualifications Framework was formally referenced to the European Qualifications Framework. Moldova adopted the National Strategy for Culture and Heritage 2025-2035 and joined the Creative Europe programme on 1 January 2026.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue the reform of education governance and advance school network consolidation, including by establishing Territorial Education Agencies and ensuring adequate transport and support measures for pupils and staff affected by school reorganisation;

→ continue enhancing the quality and relevance of vocational education and training and lifelong learning, including adult learning, contributing to reducing the mismatch between skills and labour market demands;

→ implement the 2026-2030 programme of the National Strategy for Culture and Heritage, including by putting in place effective mechanisms for the conservation, restoration and management of cultural heritage.

Chapter 29 - Customs union

Moldova has a good level of preparation in the area of the customs union. The country has made good progress, notably through the implementation of the New Computerised Transit System (NCTS) and formal accession to the Common Transit Convention (CTC) and the Convention on the Simplification of Formalities in Trade in Goods. A national Customs Decisions System (CDS) has been developed and put into operation.

One of the Commission’s recommendations from last year was implemented, and two were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ adopt the amendments to the Customs Code and related bylaws, providing the basis for the implementation of the national customs IT systems to ensure interoperability with the EU digital customs environment, and continue the alignment to take account of the progressive application of the new Union Customs Code;

→ advance the implementation of the multiannual strategic national IT programme for the Customs Service to ensure a fully digital, EU-interoperable customs environment, prioritising core interconnectivity systems and a Single Window Environment for Customs;

→ finalise the reorganisation of the Customs Service and implement the Anti-Corruption Policy and Action Plan for 2026-2029, with an emphasis on automation and digitalisation of customs operations, customs officer capacity building, the periodic rotation of staff holding sensitive posts, and the robust monitoring and evaluation of anti-corruption measures.

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY

Chapter 14 - Transport policy

Moldova is between having some and a moderate level of preparation in transport policy.

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Some progress was made in the reporting period, notably with the removal from the blacklist of the Paris Memorandum of Understanding on Port State Control, the entry into force of the new provisions of the Railway Code, and on the legislation concerning vehicle equipment and air passenger rights.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Moldova should, in particular:

→ finalise the reorganisation of the railway company, in line with the step of the Reform Agenda;

→ continue aligning the social and market rules for road transport with the EU road transport acquis, and ensure the implementation of the Reform Agenda step on road market access;

→ revise the regulatory framework for the development of sustainable urban mobility plans (SUMP) according to EU methodology in anticipation of the urban nodes agenda of the trans-European transport network (TEN-T) for enhanced connectivity, in line with the step of the Reform Agenda.

Chapter 15 – Energy

Moldova has a good level of preparation in this area and has made good progress during the reporting period, including through full transposition of the EU Electricity Integration Package, transposition of the EU Oil Stocks Directive, continuous implementation of the National Energy and Climate Plan (NECP), launching the electricity day-ahead and intra-day markets and the electricity balancing market. In the gas sector, regulated tariffs for large gas consumers were removed. The government also finalised a tender for large investments in renewable energy.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Moldova should continue to:

→ implement energy efficiency measures and deployment of renewable energy in line with the objectives of the National Energy and Climate Plan (NECP).

→ fully implement the Electricity Integration Package in line with any recommendations issued by the European Commission, to advance with market coupling with the EU;

→ accelerate the development of security architecture for stockage of oil required by the transposed Oil Stocks Directive.

Chapter 21 - Trans-European networks

Moldova is between having some and a moderate level of preparation in trans-European networks (TENs) and made some progress by approving the TEN-T Regulation at national level. It started and completed key feasibility studies to further align with the TEN-T network, while some progress was achieved in the deployment of the European standard gauge. It amended its energy legislation in July 2026 to further align with the TEN-E Regulation.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should in particular:

→ continue accelerating the implementation of key infrastructure projects on TEN-T Corridors, in particular the deployment of EU standard gauge on the Ungheni-Chisinau line, the rehabilitation of the North-South railway corridor as well as projects approved under the Connecting Europe Facility (CEF) aiming at increasing TEN-T border crossing capacity;

→ accelerate progress in the preparation of priority TEN-T road and rail corridors, including the feasibility study for the Chișinău ring road, the M3 motorway and the Chisinau terminal;

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→ continue accelerating the implementation of key infrastructure projects, in particular electricity interconnectors: the Vulcănești – Chișinău Overhead Power Line, the Bălți – Suceava cross-border interconnection, the Strășeni – Gutinaș transmission line, and the Bălți – Dnestrovsk regional interconnection project.

Chapter 27 - Environment and climate change

Moldova has some level of preparation in this area. Good progress was made during the reporting period on legislative alignment in certain areas. Moldova needs to continue and further strengthen its efforts in the areas of waste, water and biodiversity. In the field of climate policy, further work will be needed towards the establishment of a monitoring, reporting, verification and accreditation (MRVA) system of greenhouse gases (GHG).

The Commission’s recommendations from last year were largely implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ further improve institutional and administrative capacity, notably for the management of protected areas, and facilitate effective interinstitutional coordination and environmental monitoring for effective implementation and enforcement;

→ operationalise the monitoring, reporting, verification and accreditation (MRVA) for the purpose of introducing carbon pricing and aligning with the EU emissions trading system (ETS) in its full scope, and align legislation on fluorinated gases and ozone-depleting substances with the EU acquis;

→ advance alignment, operationalise strategic frameworks and, develop costed plans, providing for adequate financing of environmental investments, particularly on waste, water, air quality and biodiversity.

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION

Chapter 11 - Agriculture and rural development

Moldova has some level of preparation in agriculture and rural development. Good progress was made during the reporting period, with legislation aligning the regulatory system of financial support on agriculture and rural development and on the paying agency, adopting legislation on some elements of the common market organisation, producer organisations, plans for the development of the integrated administration and control system (IACS) and establishment of an agricultural knowledge and innovation system platform (AKIS).

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue to strengthen the administrative capacity of the Ministry of Agriculture and Food Industry and of the Agency for Interventions and Payments in Agriculture, with a focus on implementing the aligned legal framework;

→ continue to work on setting up the IACS, in particular the land parcel identification system

(LPIS), the farm register, and in establishing the farm sustainability data network (FSDN);

→ continue alignment for the EU common market organisation (CMO) and organics.

Chapter 12 - Food safety, veterinary and phytosanitary policy

Moldova is moderately prepared on food safety, veterinary and phytosanitary policy and has made good progress, notably through legislative alignment, institutional capacity building and enhanced border controls. While significant advancements have been made in sanitary inspections, remaining gaps, notably in enforcement consistency and laboratory infrastructure,

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require further attention to ensure full compliance with the EU acquis.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ continue strengthening the administrative capacity of the National Food Safety Agency for effective implementation of efficient and risk-based official controls, including through the implementation of the human resources development strategy and specialised training for inspectors from local subdivisions and border posts;

→ advance alignment with the EU acquis on animal health and animal welfare, including by stepping up implementation of animal welfare standards during transport, at farm and slaughter stages, and by preparing a national plan to upgrade establishments producing food, feed and animal by-products to meet EU structural standards;

→ establish a national network of laboratories and adopt a multiannual control plan aligned with EU acquis requirements, while reinforcing integrity safeguards in official controls, certification, laboratory testing and enforcement.

Chapter 13 - Fisheries and aquaculture

Moldova has between a moderate and a good level of preparation in the area of fisheries and aquaculture and made good progress in the reporting period. It has improved the traceability of fishery and aquaculture products and has taken legislative measures to protect aquatic biological resources and strengthen the enforceability of scientific data use in the aquaculture sector, in alignment with the EU acquis. To align with international agreements, Moldova approved a law on the country’s accession to the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ implement the multiannual national strategic plan dedicated to aquaculture;

→ continue implementing the new legislation on the organisation of the market for fishery and aquaculture products.

Chapter 22 - Regional policy and coordination of structural instruments

Moldova is moderately prepared on regional policy and coordination of structural instruments. Good progress was madein the reporting period, notably by strengthening institutional structures, advancing legislative alignment, and enhancing operational capacity for Interreg programmes.

The Commission’s recommendations from last year were largely implemented. In the coming year, Moldova should, in particular:

→ continue aligning with the EU cohesion policy acquis by adopting a clear legal and strategic framework for regional policy programming, monitoring and evaluation, in line with EU cohesion policy principles and institutional requirements;

→ strengthen administrative capacity for managing structural instruments by clarifying mandates across institutions, reinforcing coordination between central and regional levels, and investing in stable staffing, training and project preparation;

→ establish a more robust system for risk management, irregularity detection, reporting and follow-up, in line with EU requirements for sound financial management and protection of EU funds.

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Chapter 33 - Financial and budgetary provisions

Moldova is between an early stage and having some level of preparation in the area of financial and budgetary provisions. Some progress was made over the reporting period, including the preparation of a roadmap for reforming the national accounts.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Moldova should, in particular:

→ finish operationalising the coordination body for own resources;

→ continue upgrading the IT infrastructure for traditional own resources;

→ advance alignment with the EU acquis, particularly concerning VAT rules and GNI compilation.

CLUSTER 6: EXTERNAL RELATIONS

Chapter 30 - External relations

Moldova has between a moderate and a good level of preparation in external relations and made good progress. Moldova further enhanced cooperation and coordination with the EU within the WTO framework and continued to improve its framework for humanitarian assistance and international cooperation.

The Commission’s recommendations from last year were largely implemented. In the coming year, Moldova should, in particular:

→ continue aligning the work of the Council for the promotion of investment projects of national importance with international and EU standards.

Chapter 31 - Foreign, security and defence policy

Moldova has a good level of preparation in the area of foreign, security and defence policy. Very good progress was made through continued intense political dialogue with the EU at all levels, substantially increasing Moldova’s capacity to counter hybrid threats, notably cyber and FIMI, and increasing its alignment rate with the EU’s common foreign and security policy (CFSP). Moldova has continued its active participation in EU crisis management missions and operations under the common security and defence policy (CSDP).

The recommendations from last year were largely implemented but remain valid. In the coming year, Moldova should, in particular:

→ continue increasing alignment with the CFSP, ensure that the restrictive measures are implemented and continue to cooperate to prevent any attempts to circumvent sanctions against Russia and Belarus;

→ advance the operationalisation of the national crisis management framework by strengthening the capacity of the National Crisis Management Centre and adopting the National Crisis Management Plan, in line with the approved National Risk Assessment methodology.

1.3. STATE OF PLAY OF THE ACCESSION PROCESS

During the reporting period, Moldova completed the bilateral screening process on 22 September 2025. As a result, the Commission assessed all six negotiation clusters as ready to be opened. In December 2025 and March 2026 Member States provided Moldova with guidance on reform priorities for each cluster. In 2026, this was followed by the formal opening

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of accession negotiations on cluster 1 (fundamentals) in June, cluster 6 (external relations) in July as well as cluster 2 (internal market) and cluster 3 (competitiveness and inclusive growth) in October.

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2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM

2.1.1 Democracy

The functioning of democratic institutions is generally stable. Moldova continued to implement EU-related reforms, despite persistent foreign interference attempts and hybrid attacks, and a notable degree of political polarisation. The authorities sought to balance measures to counter foreign interference with respect for the rule of law and fundamental rights.

Elections

Moldova held parliamentary elections on 28 September 2025. According to the final report by the OSCE/ODIHR election observation mission, the elections were competitive and offered voters a clear choice between political alternatives, although the process was marred by serious cases of foreign interference, vote-buying schemes, illicit financing and cyberattacks.

Following the elections of 2025, the Central Electoral Commission organised consultations with national and international observers to gather lessons from the elections. It also shared its experience with other countries in the region. The recently revised legal electoral framework is generally adequate and provides a sound basis for conducting democratic elections. The authorities work actively and in a coordinated manner to detect and counter foreign interference, including illicit financing and vote-buying schemes. The Law on combating electoral corruption should be brought fully in line with European standards.

In August 2026, Moldova adopted a new set of amendments to the Electoral Code. These new provisions aimed to facilitate postal voting, reinforce campaign- finance oversight and strengthen the fight against new forms of illicit financing, such as crypto-currency schemes, and misuse of public administrative resources. Moldova should ensure that these new amendments are in line with the Venice Commission recommendations. Based on the OSCE/ODIHR recommendations, the authorities should, among other things, ensure contestants’ right to an effective remedy when

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sanctioned on the exercise of their political rights, enhance coordination between competent authorities for tackling electoral corruption and improve rules to prevent misuse of public resources. Moldova should ensure alignment with all relevant EU acquis in this area, including the Regulation on the transparency and targeting of political advertising, and taking into account European and international democratic standards.

Although challenges persist, Moldova has taken steps to ensure adequate inclusion of persons with disabilities, particularly in terms of accessibility for persons with psychosocial disabilities and access to polling stations.

Parliament

The Code on the Organisation and Functioning of Parliament was adopted in second reading in August 2026. It has sparked mixed reactions from the opposition to new provisions such as the reduction of time allocated for debate or the prohibition on MPs switching political parties during their mandate, as well as over the lack of safeguards to prevent the abusive use of emergency procedures. Moldova has requested an ex-post opinion from the Venice Commission to assess the compliance of its rules of procedures with European standards. In parallel, Moldova should adopt a code of conduct and ethics of members of Parliament and ensure practical guidance on its provisions. Rules on conflicts of interest and interactions with third parties should also be regulated in this legislation.

In 2025, only interpellations and parliamentary hearings were used as oversight tools. An effective parliamentary oversight mechanism was adopted on 27 July 2026 to monitor the activities of the National Commission for Management of Crisis Situations. The Parliament established a Standing Committee for European Integration in October 2025, composed of 11 members, which contributed to better coordination across institutions working on EU accession. It also launched a digital platform to strengthen cooperation with civil society. Dialogue between the majority and the opposition is insufficient, and no plenary session was dedicated to opposition draft laws.

A legislative plan for 2026 was adopted in February, contributing to greater transparency. The number of draft laws submitted under urgent procedure or priority procedure decreased but still remains considerable. Out of 339 legal acts adopted in 2025, 28 legal acts were adopted under the fast-track procedure and two in urgent procedure.

Moldova has made progress on women’s political participation: women accounted for 44% of candidates in the 2025 parliamentary elections, supported by the mandatory 40% gender quota.

EU integration

The institutional framework for EU integration remains in place. The administrative capacity of the Bureau for European Integration continued to improve, supported by increased staffing and a gradual strengthening of its operational functions.

The 2026-2028 National Development Plan continued to guide the integration of EU accession priorities. The 2025-2029 National Programme for the Accession of Moldova to the EU was updated in December 2025 to further reflect new reforms undertaken in the accession process.

Moldova has continued implementing its roadmap on the functioning of democratic institutions. Progress was achieved on the transparency of parliamentary activities with the launch of a modernised online portal. All plenary sessions are broadcast live.

Governance

The government changes in July 2026 did not affect the strategic approach to maintain the accelerated pace of reforms in the context of the EU accession process.

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The State Chancellery adopted a guide on strategic planning in autumn 2025, providing a unified reference framework for correlating public policy with planning documents. In 2026, the e-Monitoring information system was launched to support reporting on the progress on the legislative process.

The first instance verdict of seven years imprisonment issued against the former Governor (Bashkan) of Gagauzia was upheld by the Court of Appeal on 28 May 2026. The elections of the Gagauz People’s Assembly and Bashkan are planned for 15 November 2026. These were initially delayed due to legal and institutional uncertainties concerning the applicable electoral framework, including the alignment of regional electoral legislation with the national Electoral Code. Following the Constitutional Court ruling of 9 July 2026, the Electoral Code was amended in August, clarifying the rules and responsibilities for the organisation of regional elections in Gagauzia.

The state of emergency introduced temporarily March and in September 2026 in the context of persistent energy security risks as well as the hydrological situation did not significantly affect the functionality of central government. The parliamentary oversight over the state’s management of crisis situations has been strengthened through amendments adopted in July 2026, that aim to ensure accountability, transparency and the protection of citizens’ rights.

Civil society

Civil society organisations (CSOs) in Moldova operate in an overall enabling environment, supported by a legal framework that safeguards fundamental freedoms and aligns with European and international standards on freedom of assembly and association. During the reporting period, there were gradual improvements in participatory governance, such as the adoption of the Law on public participation in decision-making and the Law on volunteering, introducing clearer procedures, expanding opportunities and aligning national policy with European standards.

Some gaps persisted in practice in ensuring consistent and meaningful participation of civil society organisations in the legislative process. Although eleven out of twelve parliamentary committees have formally established expert councils, their activity has not yet fully started, which limits opportunities for structured dialogue and for CSOs to contribute to policymaking.

To reinforce the inclusion of citizens and civil society in the legislative consultative process, Moldova adopted a Law on Public Participation in August 2026. This aims to establish dialogue platforms between civil society and the authorities and to also introduce enforceable obligations for both central and local authorities throughout the entire decision-making cycle. It promotes the use of digital tools (particip.gov.md and e-Democracy) and introduces a regulated civic initiative mechanism allowing citizens to submit policy proposals through the e-Democracy platform.

Verbal attacks against CSOs and media organisations intensified in 2025, particularly in the context of the parliamentary elections and the suspension of USAID funds.

Financial sustainability remains the sector’s most significant vulnerability, driven by heavy reliance on external funding. Nonetheless, in 2025, 1 050 non-commercial organisations and religious organisations benefited from financial support directed via the 2% designation mechanism, representing a 15% increase compared to 2024.

2.1.2. Public administration reform

Strategic framework on public administration reform

The strategic framework for public administration reform (PAR) is formally in place, though implementation gaps persist. The Government advanced the PAR Strategy 2023-2030 and its

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2023-2026 implementation programme, in line with the PAR Roadmap. The self-reported implementation rate of the actions foreseen by the Programme for 2025 is 65%. The mid-term evaluation of the 2023–2026 implementation programme for the PAR strategy was completed, approved and published during the reporting period, in consultation with OECD-SIGMA experts.

During the reporting period, a key focus was the local administration reform, particularly the voluntary amalgamation of local municipalities. Following initial consultations, amendments to the voluntary amalgamation law were adopted aimed at simplifying procedures and granting greater local autonomy, while secondary legislation is being updated to reflect these changes, with funds allocated to incentivise amalgamation. By 31 August 2026, 63% of the local municipalities had agreed to voluntarily amalgamate while the normative process is set to consolidate the reform by end-November 2026.

The institutional framework remains largely unchanged. The political leadership for PAR remains concentrated at the level of the Secretary-General of the Government and the State Chancellery. Broader political endorsement and visibility is needed, especially for communicating the benefits of reform such as central, regional and local administration restructuring.

On financial sustainability of PAR, under the draft Government Decision on the approval of the Medium-Term Budgetary Framework (MTBF) for 2026-2028, an amount of MDL 246.27 million (approximately EUR 12.31 million) is planned for the implementation of PAR in 2026. This amount is also an increase from the planned annual allocation of MDL 100 million (EUR 5 million) in 2025.

The first meeting of the EU–Moldova Subcommittee on Public Administration Reform was held on 25 June 2026 in Chisinau, establishing a structured format for political and technical dialogue with the European Commission on public administration reform.

Policy development and coordination

Moldova has established a solid policy development framework, with strengthened coordination structures and the adoption of key strategic documents, including the 2025-2029 National Programme for Accession to the EU (NPA) and the 2026-2028 National Development Plan. To support the planning, monitoring and reporting of policy implementation, including EU commitments, the digital tool e-Monitorizare was developed and is currently in pilot stage More institutional capacity is needed to address uneven administrative capabilities, policy silos and weak linkages between strategic planning and budgeting. The link between policy and finance remains one of the weakest parts of the system and has deteriorated in 2026. Continued focus on improving policy costing, monitoring and cross-ministerial collaboration will be essential to consolidate and ensure sustainable reform.

On evidence-based policymaking, the legal framework is in place despite implementation being weak. In 2025, regulatory impact assessment methodologies and performance-based monitoring mechanisms were improved, but gaps in implementation remain. Public consultation platforms have expanded, notably through the modernisation of the public participation portal.

Public financial management

Reforms on public financial management have continued to advance, while further improvement is still necessary. Progress continued in implementing the Strategy for the development of public finance management for 2023-2030 and its action plan for 2025-2027 as evidenced by its mid-term evaluation. In December 2025, the Law on public finance and fiscal responsibility was amended with effect from 2027, introducing the legal requirement to have regular spending reviews to assess efficiency, effectiveness and relevance of public

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expenditure, as well as to reallocate resources to relevant policies. The amendment also requires financial reporting for extra-budgetary entities and institutionalises budget expenditure review every seven years.

Adherence to fiscal rules continued to show systemic weaknesses. The budget calendar is not systematically followed as required by law, reducing the time for parliamentary scrutiny. The Law itself was amended in December 2025, with changes creating some opportunities for improvement in the PFM area, such as spending reviews, costing of new policy proposal proposals and public investment management. The 2026-2028 and 2027-2029 medium-term budgetary framework (MTBF) were developed but not adopted during the reporting period, indicating that the MTBF is not yet embedded in the implementation of the annual budget calendar. The link between strategic planning and the MTBF remains weak and needs improvement. The share of expenditure kept under the ‘General actions’ budget line decreased in the 2026 budget from 60% to 29%, providing limited improvement in budget transparency. Gender-responsive budgeting has only been partially institutionalised into budget planning and reporting. Moldova made some improvements in the area of public investment management by reforming the relevant institutional framework for the preparation and selection of projects, including the appraisal through the single project pipeline of all new investment projects included in the annual budget, and the establishment of dedicated focal points and subdivisions in line ministries. Additional effort is needed to improve all stages from planning to implementation of investment projects.

Public service and human resources management

The public service and human resources management system needs to be improved. A new law adopted in August 2026 foresees that an evaluation of the over 50 public bodies, including key regulatory agencies, functioning outside civil service rules with weaknesses in governance, accountability and transparency, will be carried out in 2027, accordingly to a new transparent methodology. Merit-based recruitment and selection frameworks are not applied consistently, and are weakened by limited competition, exemptions from recruitment practices and decentralisation. New legal amendments were adopted, aiming at strengthening and clarifying responsibilities of the role of Secretaries General in ministries by allowing greater flexibility in internal structures and reinforcing their coordination of key administrative functions, including public policy, external assistance, legal affairs, HR, finance, ICT, and document management. Efforts are ongoing to implement a competency framework for senior management and introduce a centralised recruitment system for central public administration.

The current salary system is fragmented and complex and fails to ensure competitiveness and transparency of remuneration. A civil service remuneration reform has been developed in the framework of a broad process of public consultations; a new law is planned to come into force in January 2027. The reform should include job evaluation, pay analysis, the design of a revised salary scale and a budget impact assessment framework.

A new human resource management information system (HRMIS) is still in the development phase. Currently the system remains mostly decentralised, with limited monitoring and reporting.

The civil service continues to face a high vacancy rate of 20.06%, especially in executive roles (23.16%) and senior management posts (20.66%), while other management positions have the lowest vacancy rate at 8.12%. Across the wider public sector, 57,954 of 67,832 permanent posts were occupied on 1 January 2026, giving an employment rate of 85.4%, slightly lower than 85.7% in 2024. Recruitment through competitions has improved, rising from 1.6 candidates per post in 2020 to 2.6 in 2025, the highest level so far. However, participation is still relatively low, and only around 52% of advertised posts were filled this way. The system has limited ability

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to distinguish between different levels of performance. Staff turnover has improved but remains notable. Voluntary turnover fell to 7.0% in 2025 from 8.4% in 2024, while total turnover declined to 9.4% from 11.6%.

Gender balance is generally achieved in senior management positions (over 50%), while there is a majority of women in the public service overall (over 70%). Gender equality policies should be strengthened.

Accountability of administration

The accountability of the public administration still needs to be improved. The legislative framework provides for a governance and accountability scheme for ministries, administrative authorities under ministries, and central administrative authorities reporting to the Government. A restructuring of central public administration is ongoing, based on the new law on certain categories of public institutions, adopted in July 2026; however, it does not address all the system’s bottlenecks. Despite independent oversight bodies being in place and operational, implementation of their recommendations by public authorities remains inconsistent.

The right to access public information is generally well regulated, but improvements in implementation are needed and public authorities still struggle to publish aggregated data or ensure effective monitoring functions. Transparency procedures have improved through proactive information disclosure on the e-Democracy platform.

On the right to administrative justice, while the legal framework is in place, its practical implementation across public institutions remains uneven, undermined by lengthy administrative procedures and limited operational capacity.

Service delivery to individuals and business

Moldova has made significant progress in developing a framework for digitalisation and modernisation of public services, including through e-government platforms and service portals. Digital access to public services continued to expand during the reporting period. The EVO integrated governmental portal now brings together 636 public services, of which 70.3 % (447 services) are available online. User uptake of e-services increased significantly, including in rural areas where 118 Unified Centres for Public Service Delivery (CUPS) were set-up to respond to the persistent low demand. As of February 2026, the e-Governance Agency is undergoing a CAF assessment, contributing to the institutional self-evaluation and benchmarking in line with EU best practices. However, significant gaps persist. The absence of a government-wide performance metrics system and a comprehensive quality management policy undermine consistency. A new law on accessibility requirements for certain products and services was adopted in August 2026, in line with EU acquis. It ensures standardised accessibility requirements for key products and services, including digital, banking, e-commerce and transport services for persons with disabilities.

2.2 RULE OF LAW AND FUNDAMENTAL RIGHTS

2.2.1 Chapter 23: Judiciary and fundamental rights

The EU’s founding values include the rule of law and respect for human rights. An effective (independent, high-quality and efficient) judicial system and an effective fight against corruption are of paramount importance, as is the respect for fundamental rights in law and in practice.

Functioning of the judiciary

Strategic documents

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The implementation of the 2022-2025 Justice Sector Reform Strategy and its action plan has been partially satisfactory, although some actions were no longer relevant by the end of the implementation period. A new strategy is under preparation and is expected to address the outstanding sectoral issues together with new priorities. The first Superior Council of Magistracy Strategic Plan (2025-2029), the Strategic Development Programme of the Superior Council of Prosecutors (2025-2029), the Human Resources Strategy of the Judicial System and the Strategic Development Programme of the Superior Council of Prosecutors (2025-2029) were all adopted in 2025 and are in the early stages of implementation. The Strategic Development Plan of the National Institute of Justice for 2026-2031 was adopted in July 2026. Consultation among key actors is ongoing to adopt a comprehensive salary reform, aiming at improving the attractiveness of judicial positions.

Management bodies

The Superior Council of Magistracy (SCM) and the Superior Council of Prosecutors (SCP) are fully functional in full composition with vetted members and continue to exercise their responsibilities for managing the justice and prosecution services, including appointments, promotions and career of judges and prosecutors. By September 2026, the Superior Council of Prosecutors had exercised its legal prerogative to overturn six negative reports from the Vetting Commission, which appealed both decisions to the Supreme Court of Justice. The SCM and SCP’s capacities should be further strengthened by increasing their staffing, especially in the secretariats, where only around 60% of positions are filled, and by improving their internal procedures.

The SCM and SCP specialised bodies are almost in full composition with vetted members. In March 2026, the SCM’s Selection and Evaluation Board reached its full composition with nine vetted members. The SCM’s Disciplinary Board is still missing two (vetted) members to reach its full composition of seven members. Remaining vacancies should be filled without delay. All members of the SCP’s Selection and Evaluation Board were appointed. The last remaining member of the SCP’s Disciplinary Board, representing civil society, is still to be appointed.

The re-evaluation of pending appeals as part of the process of extraordinary evaluation of candidates for vacant positions in the SCM and the SCP (also known as ‘pre-vetting’) ended in November 2025, with the last appeal having been ruled on by the Supreme Court of Justice.

Legislative amendments adopted in December 2025 extended the ex officio membership of the Minister of Justice in the SCP until January 2028, backtracking on an earlier commitment to remove this membership to ensure the independent functioning of the SCP and to meet GRECO recommendations. The Minister’s membership must be removed without delay, and until that time, the Minister has taken a commitment to not take part in any decisions related to the selection, evaluation or careers of prosecutors. An amendment in that sense has been adopted in first reading in October 2026.

Independence and impartiality

The independence and impartiality of judges and prosecutors continued to improve, in particular through the extraordinary evaluation (‘vetting’) of judges and prosecutors in top positions.

During the reporting period, the vetting process continued. It progressed for candidates for the Supreme Court of Justice, with five new judges vetted and appointed, which allows the Supreme Court of Justice to reach quorum as currently 12 of the 20 positions are filled. The vetting process for the judges of the Courts of Appeal was completed in early 2026, while the vetting for candidate appeal judges is at an early stage. The vetting for the presidents and vice- presidents of first instance courts launched in May 2025 has been completed for sitting judges. Vetting was extended in December 2025 to anticorruption judges. The process has been

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initiated but none have been vetted yet. The vetting process for specialised anti-corruption prosecutors is ongoing and registered good progress in 2026, the vetting of specialised prosecutors on organised crime and chief prosecutors from the General Prosecutors’ Office, launched in May 2025 progressed but remains at a very early stage, as does the vetting of managerial prosecutors in territorial offices.

The vetting process has led to a significant number of resignations in the judiciary and prosecution service, and most vacancies were not filled during the reporting period. Vacancies in the Supreme Court and Courts of Appeal in particular continue to negatively impact judicial capacity, limiting the system’s ability to address existing backlogs.

The two vetting commissions for judges and prosecutors are in full composition with nine members each. The process for the appointment of new international members following resignations raised concerns and strong criticism from civil society and opposition. The new rules for selection were adopted in a rushed manner without consultation. The Venice Commission opinion noted that in the specific circumstances, the anti-deadlock mechanism chosen by the Moldovan authorities does not in itself run counter to international standards, but recommended ensuring a meaningful interval between the first (qualified majority) vote and the

second (absolute majority) vote, so that the majority and opposition have a genuine opportunity to negotiate the nomination of international members. Moldova should implement these recommendations. A Constitutional Court ruling is pending on these amendments.

In May 2026, Moldova submitted to the Venice Commission for review legislative amendments to extend the extraordinary evaluations of integrity to all judges, including those in first instance. The reasons invoked were a lack of confidence of the population in the justice system, and the perception that corruption is the main structural problem of the judicial system. The amendments proposed would have modified the responsibility for assessing financial integrity and changed the evaluation criteria. The Venice Commission recommended that the

amendments proposed be reviewed, and that the extended integrity assessment should be addressed through the vetting framework, instead of being part of the evaluation process, with full procedural safeguards, explicit statutory justification, and clear legal basis for consequences that such a framework requires.

In September 2026, new draft amendments to the law on the status of judge proposed an extension of vetting only to judges working on insolvency and administrative cases. The law on the Constitutional Court has been amended to address outstanding Venice Commission

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recommendations, notably on the transparency of the nomination procedure.

Amendments to the law on performance evaluation of judges and prosecutors entered into force in August 2025, aiming to strengthen the integrity verification mechanism for judges and prosecutors not subject to the vetting process. Minimal progress was registered in their implementation in the evaluation of judges by the SCM with 27 judges evaluated out of 128.

In September 2025, the SCM increased the number of judge positions to 510 judges. In 2025, the Selection and Evaluation College of the SCM selected 109 candidates for the position of judge. From these, 51 were proposed for appointment for the President and 36 of them have been appointed as of August 2026. Out of the 15 remaining candidates, 13 have either withdrawn their candidacies or have been refused repeated proposals by SCM, following the initial refusal by the President to appoint them based on professional competence concerns, despite the SCM’s positive assessment. Two candidates remain pending appointment by the President. The SCM organised 37 competitions to fill judge positions in the system and decided the transfer of 17 judges to different instances. As regards prosecutors, the Selection and Evaluation College of the SCP evaluated 21 candidates in 2025 and proposed seven candidates for appointment. As of August 2026, the Selection and Evaluation College of the SCP carried out selection procedures in respect of 32 candidates, two of whom subsequently withdrew before the interview stage. Out of the 30 remaining candidates, 10 were proposed for appointment. All of them were NIJ graduates. The system for random allocation of cases among judges is in place and is fully used. The system still needs to be complemented with a common online calendar for judges, lawyers and prosecutors. An automated system for randomised allocation of cases to prosecutors based on strict and objective criteria should be introduced. Moldova amended its law strengthening the guarantees of the prosecutors’ procedural independence in order to further strengthen the autonomy of the specialised prosecutors. It was adopted in first reading in October 2026.

Accountability

The framework for the regulation of accountability is largely satisfactory.

In terms of its implementation, in 2025, 35 disciplinary proceedings were initiated. 25 were processed by the SCM Disciplinary Board (including 14 carried over from 2024). Four warnings, three reprimands, and two dismissals were issued but due to appeals, there were no final decisions by the end of 2025. The SCM should accelerate decision making on disciplinary proceedings.

The Disciplinary and Ethics Board of the SCP carried out 44 disciplinary procedures concerning 39 prosecutors, with 17 sanctions including warnings, reprimands, dismissals and one position downgrade.

All judges, prosecutors and candidates for these posts have to submit annual declarations on assets and interests to the National Integrity Authority (NIA). In 2025, there were no cases initiated against judges or prosecutors concerning violations related to their declarations of assets. NIA’s capacity should be strengthened to improve the verification of assets.

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The codes of ethics for judges, prosecutors and lawyers are in place. Additional amendments were added to the Code of Ethics for Judges in March 2026 to update the rules of professional conduct, in particular online.

Both Councils have in place an inspection board for investigations and a disciplinary board for the enforcement of decisions, which reinforces the independence of the bodies. These ethics and disciplinary mechanisms should be used more effectively. The Committee on Ethics and Professional Conduct of Judges under the SCM did not hold any meetings in the last years. The Inspectorate for Public Prosecutions is operational with six inspectors appointed out of nine.

In August 2026, the SCP adopted the Methodological Guide on uniform application of Norms regarding Legal Qualification of Disciplinary Violations Committed by Prosecutors, aimed at further strengthening accountability and integrity in the prosecution system by enhancing the disciplinary mechanism. In the judiciary, the disciplinary framework became more operational in 2025 after the temporary institutional blockage seen in 2024, when the SCM Disciplinary College lacked quorum and imposed no sanctions.

Quality of justice

The quality of justice is improving. The National Institute of Justice (NIJ) has improved the quality of its training programmes. New bylaws were adopted and curricula revised. The EU Law module was fully institutionalised, and legal drafting modules were expanded, while training programmes were introduced on managerial competencies, ethics and integrity. However,

further measures are needed. The NIJ’s capacity constraints negatively affect its programmes. In July 2026, the NIJ adopted an ambitious Institutional Strategy, which should be given sufficient financial allocations and political support for implementation.

Although most recommendations of the 2022 TAIEX mission have been achieved, the recommendations on amending the current model of recruiting candidates and appointing

judges and prosecutors, and the admission and graduation process for the NIJ still need to be addressed without delay. The duration of the practical side of the training should be extended.

Moldova should continue efforts to ensure sufficient human and financial resources to enable the judiciary to function efficiently. The SCM’s strategic plan for 2025-2029 included a human resources strategy for the judicial system is in place. However, Moldova still needs to finalise and adopt the salary reform and improve human resources management to increase the attractiveness of judicial positions. In 2025, EUR 35 million was allocated to courts of law

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(0.73% of the state budget) and EUR 25.8 million to prosecutors’ offices (0.54% of the state budget), constituting a budget increase of 5.5% for the courts and 9.8% for the prosecution service compared to 2024.

Alternative dispute resolution mechanisms in the form of non-judicial mediation, conciliation and arbitration continue to be barely used. Most Moldovan mediators are inactive, with 48 registered mediators per 100 000 inhabitants and 173 practising in 2025. The new legal framework on mediation, adopted in February 2026 and applicable from September 2026, as well as the new law on arbitration adopted in August 2026 are expected to expand the use of these out-of-court dispute resolution mechanisms. Training for mediators is being organised to ensure that the mediation system is fully operational once the law becomes applicable.

While access to justice was expanded through a law adopted in May 2025, it is still limited due to other legislative shortcomings, territorial gaps and lack of information. Regarding accessibility, courtrooms have been reorganised and adapted to facilitate access for persons with disabilities to the judicial process, including by locating the courtrooms on the ground floor or by equipping most of the courts with ramp access.

On the judicial map reorganisation and new structure of the prosecutors’ offices, the number of territorial prosecutors’ offices is being reduced from 36 to 14. However, the finalisation of the whole reorganisation process was postponed to 31 December 2035 due to the need to build/adapt premises to allow courts to function with higher staff numbers, sufficient courtrooms and adequate IT equipment. As a result, tangible progress has been limited. Moldova put in place a normative act in September 2026 to establish a clear monitoring framework to monitor the implementation of the judicial and prosecutorial maps. In addition, SCM, SCP, the General Prosecutor's office and the police should coordinate better to use resources efficiently and limit the number of instances in which a case is not assigned in an optimal manner.

To further improve the quality of court decisions, the Guideline on quality standards for judicial decisions was adopted by the Superior Council of Magistracy in December 2025.

As regards the reform of the Supreme Court of Justice, a Strategic Development Plan, an Action Plan and a revised Regulation were prepared with the aim of strengthening the Court’s institutional role in ensuring uniformity of case law and providing methodological guidance,

optimising working processes and enhancing public trust.

Efficiency

The efficiency of justice improved partially

Moldova spent EUR 65 million on its judicial system in 2025, which is an increase compared to 2024 in the court

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budget (8.7%), legal aid budget (0.3%) and for prosecution services (12.2%).

The disposition time in first instance for civil and commercial cases improved while it worsened in second instance. Clearance rate and disposition time for administrative law cases in first instance improved considerably in 2025 (148% in 2025 compared to 101% in 2024, and 209 days in 2025 compared to 476 days in 2024).

Disposition times remain high in administrative cases in second instance and in criminal cases in all types of courts. Disposition time reached 1018 days for criminal cases at the Supreme Court of Justice in 2025 (compared to 865 in 2024). The clearance rate should be further improved for the second instance, particularly in criminal courts, but reaches a good level for criminal cases assigned to the Supreme Court of Justice (99% clearance rate). During the first half of 2026, clearance rates improved in second instance cases overall compared to 2025.

Further efforts remain necessary to ensure consistent improvements across all court levels to avoid accumulation of pending cases and backlogs and prolonged duration of trials. The Courts of Appeal show an improved trend in their clearance rate for civil and commercial cases, but they remain below 100% overall. It should be noted that in 2025, the Supreme Court of Justice examined 95% of the cases received, with just 10 out of 20 judges in post.

The Agency for Digitalisation in Justice and Judicial Administration (ADJAJ), officially set up in January 2025 has an extremely limited capacity due to persistent staffing concerns. The level of use of IT tools across the justice system remains uneven and partial. In August 2026, normative amendments promoted the digitalisation of certain judicial procedures. Further legal framework improvements are needed, together with a decisive reinforcement of ADJAJ mandate and institutional capacity.

Fight against corruption

Track record

The track record on the fight against corruption has further improved during the reporting period, although significant weaknesses remain, in particular as regards the timely adjudication of complex corruption cases, the translation of increased investigations into final court rulings, and effective confiscation of assets. More proactivity is needed in certain vulnerable sectors such as

public procurement.

On high-level corruption cases in 2025, the Anticorruption Prosecutor’s Office (APO) sent 38 criminal cases to court involving 44 persons, compared to 71 cases involving 113 persons in 2024. Courts of first instance, with the participation of APO prosecutors,

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delivered 202 judgements, of which 128 were convictions involving 181 persons, 50 were terminations involving 104 persons, and 24 were acquittals involving 64 persons. The total value of fines and confiscations ordered in cases sent to court reached MDL 365 120 532 (EUR 18 080 769), which is almost five times higher than the total value ordered in 2024, albeit from a low base. 65 convicted persons received prison sentences. Compared to 2024, when the APO brought 71 cases involving 113 individuals/entities, the number of new high-level corruption cases sent to court was lower, but the total number of final court decisions increased from 183 in 2024 to 202 in 2025. The lower number of high-level corruption cases sent to court together with a significant increase of confiscated assets demonstrate an orientation towards more complex cases that require longer investigations but have higher impact.

At the same time, the deterrent effect of sanctions continued to be affected by lengthy court proceedings and the lapse of statutes of limitation, which APO identifies as a major obstacle in complex corruption and financial crime cases. For example, in 2025, 38 first instance court proceedings on high level corruption cases, involving a total of 85 persons, were terminated due to the lapse of the statute of limitation.

In the first six months of 2026, 59 high- level corruption cases were initiated, 25 were sent to court and 50 conviction judgements were delivered. Seizures amounted to approximately MDL 39.8 million (almost EUR 2 million), while courts ordered confiscations of approximately MDL 3.8 million (EUR 187 739). These interim figures should be read together with the continuing need to secure timely adjudication and effective enforcement of confiscation orders.

The National Anticorruption Centre (NAC) reported strong operational activity in 2025. NAC investigative officers detected 847 crimes (749 in 2024), of which 792 were corruption and corruption-related offences (701 in 2024). The most common offences included active bribery, passive bribery and trading in influence. NAC also reported 20 cases of electoral corruption and 6 cases of illegal financing of political parties. During criminal investigations, 129 persons were detained and 77 persons were taken into custody. During the first half of 2026, NAC detected 447 crimes, of which 411 were corruption and corruption-related offences. It initiated 428 criminal cases, referred 201 cases to court and recognised 500 persons as suspects. During the same period, the Asset Recovery Agency (CARA) seized 382 assets, worth more than MDL 236.4 million (EUR 11.7 million).

The effectiveness of asset recovery remains limited. A 2026 Court of Account audit found that, at the end of 2025, 6 227 frozen assets were recorded with a total value of around MDL 9.6 billion, while only around 0.6% of the value of assets frozen by CARA in 2018-2025 was effectively recovered and transferred to the state budget. The audit also identified weaknesses in assets records, interoperability and realisation of confiscated property. The authorities need to translate asset tracing and freezing into executed confiscation and actual recovery.

Legal framework

The legal framework on the fight against corruption is broadly adequate regarding preventive measures and was further strengthened in 2025, while major gaps remain regarding repressive measures, resources and training for specialised bodies, lobbying regulation and comparable

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statistical reporting.

GRECO’s Fifth Evaluation Round Compliance Report published in April 2026 concluded that seven out of 25 recommendations had been implemented satisfactorily, while 12 were partly implemented, and six not implemented. The Law on Professional Ethics in public administration was adopted in July 2026, while a draft Code of Ethics and Conduct for Government members was publicly consulted in August 2026. Moldova is addressing remaining several important GRECO recommendations; for instance limiting the participation of the Minister of Justice in the SCP’s decision-making in 2026 and removing the ex officio membership of the Minister of Justice in the SCP as of 1 January 2028, addressing rules on contacts with lobbyists, conflict of interest, asset declaration and post-employment restrictions.

On electoral corruption, key recommendations of the Venice Commission and of OSCE/ODIHR remain unaddressed, notably on clarifying the grounds for suspending and dissolving political parties or the criteria for banning successor parties declared unconstitutional. Moldova should ensure the Law on combating electoral corruption is brought into line with European standards.

In July 2026, Moldova amended its national legislation with a view to aligning whistleblower protection with the EU acquis as regards the conditions for protection for reports and public disclosures, and the measures of support and protection against retaliation.

Strategic documents

The strategic documents are in place and adequate in terms of prioritising actions to respond to current gaps. The National Integrity and Anticorruption Programme (NIAP) 2024-2028 and its action plan are supported by an effective and comprehensive monitoring methodology with semi-annual and annual reporting, a monitoring group, a secretariat within NAC, and parliamentary oversight. The reports are made publicly available via the NAC’s website. The implementation framework serves as a vehicle for following up on recommendations related to GRECO, the OECD’s Anticorruption Network for Eastern Europe and Central Asia and the United Nations Convention against Corruption. At the same time, implementation remains mixed and further efforts are needed, including more targeted anticorruption responses in high-risk sectors. The programme should be updated to include the newest round of recommendations from these organisations.

In June 2026, the Parliament adopted the National Programme and Action Plan for modernising the investigation and prosecution system in the fight against corruption, organised crime, financial fraud, money laundering and other illicit activities for 2026-2027. In 2025 overall, six strategic analyses were carried out. In the first quarter of 2026, five strategic analyses were under review. These covered areas such as customs, illicit trafficking of narcotic substances, the recovery of criminal assets, and judicial practice in corruption cases.

Institutional framework

The institutional framework on the fight against corruption is in place and is adequate regarding preventive measures and satisfactory regarding law enforcement.

Through amendments to the Criminal Procedural Code in June 2026, Moldova re-distributed the anticorruption investigation and prosecution functions of APO and NAC. The new institutional framework is expected to strengthen the financial crime investigation system and places APO in the lead of investigations. For the other high-level corruption cases, NAC is led by APO in the investigative process. The 2026-2027 modernisation programme complements this model through NAC capacity-building, specialised functions for criminal-asset recovery and virtual assets, and an increase of 150 posts.

Moldova has an overall well-established and operational specialised institutional setup for

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corruption prevention and anticorruption policy coordination, centred on the NAC for the prevention, coordination and investigation of corruption and corruption-related offences within its competence, and on the NIA for asset and interest declarations, conflicts of interest, incompatibility of office and related integrity restrictions. Capacity constraints remain, in particular on the NIA’s effective verification capacity and the full practical functioning of automated and interoperable verification tools. In August 2026, NIA launched public consultations on a new concept for the e-Integritate system, to replace the current one, and started implementing its internal guidelines, expanded the powers of its president for more coherent control practice and tightened the declaration and verification of assets system.

Attention should be paid to ensuring a more effective framework for the proactive detection of latent high-level corruption cases. In this regard, cooperation, operational coordination and the overall institutional setup for high-level corruption detection should be further strengthened.

Asset recovery and management reforms advanced with the introduction in February 2026 of a Law on Social and public-interest use of confiscated assets. Moldova should ensure that financial investigations lead to timely freezing, final confiscation and measurable recovery.

Following the adoption in 2025 of the law to set up specialised anticorruption panels, Moldova faced a low participation rate in the competitions for these panels. Moreover, legislative amendments are needed to ensure that these panels retain jurisdiction over all high-level corruption cases.

At the end of 2025, Moldova amended the vetting law to include all first instance judges that are part of the anticorruption panels, in line with Venice Commission recommendations, and judges who have dealt with corruption cases at any point after 2017.

Fundamental rights

General framework

The general framework on fundamental rights is broadly satisfactory. The implementation of these rights should be improved, notably by allocating adequate resources to relevant bodies.

International human rights instruments

The cooperation with international human rights monitoring bodies and follow-up to their recommendations needs to be improved. During the reporting period, Moldova ratified the second Protocol of Convention 108 of the Council of Europe on the protection of personal data.

Moldova has not yet ratified the European Charter for Regional or Minority Languages or the Protocol No 12 of the European Convention on Human Rights (on anti-discrimination).

European Court of Human Rights

The cooperation with the European Court of Human Rights (ECtHR) and the implementation of its judgments need to be improved. Moldova appointed a Government Agent to the ECtHR in July 2026 and should support her with the secondment of staff at the Department of Execution of the ECtHR judgments.

Over the reporting period, the ECtHR delivered 48 judgments

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against Moldova and found breaches of the European Convention on Human Rights relating mainly to adequate investigation of ill-treatment or domestic violence, the lack of an effective legal remedy and discriminatory attitude of the authorities based on gender and disability. The non-execution of court decisions, disproportionate interference in the right to property and inhuman detention conditions are among the most common violations.

Currently, there are 24 leading cases under enhanced supervision by the Committee of Ministers related notably to the right to a fair trial and inadequate investigation of ill-treatment.

At the end of the reporting period, the Government Agent presented an Action Plan on the execution of the ECtHR judgments, focusing on groups of cases under enhanced supervision, with the aim of obtaining their closure or their downgrade to the standard supervision.

Promotion, protection and enforcement of human rights

The legal and institutional framework for the promotion, protection and enforcement of human rights is in place, but implementation needs to be improved. Gaps in legislation continue to persist, notably on torture and ill-treatment, procedural rights and non-discrimination.

While the implementation rate of the recommendations issued by the Equality Council rose to 36% (from 29% in 2024), the implementation rate of the recommendations directed at public authorities decreased to 21% in 2025. The implementation rate for recommendations by the People’s Advocate office increased to 80% in 2025 (from 64% in 2024). In order to increase the implementation rate of the recommendations issued by the Ombuds institutions, Moldova has convened 19 meetings with relevant public institutions and developed an electronic register to

monitor their enforcement.

Both institutions remain understaffed, especially the Equality Council with twelve vacant positions. Moldova’s legal framework does not provide the Equality Council with the financial resources necessary to perform all its duties effectively. Its sanctioning mechanism and competence to assist victims of

discrimination should be strengthened.

The National Human Rights Council has not been convened during the reporting period.

Prevention of torture and other forms of ill-treatment

Moldova provides legal guarantees on the prevention of torture and ill- treatment, nevertheless further legislative safeguards could be adopted and the follow-up to cases remains insufficient.

Moldova still needs to address the

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2023 recommendations of the Committee on the Prevention of Torture (CPT). Progress in combating and investigating ill-treatment and torture remains limited. The National Preventive Mechanism (NPM) operates independently and monitors detention facilities.

The ECtHR in its Petrov v. Moldova judgment of March 2026 condemned Moldova for the informal prisoner subculture. Several cases of alleged ill-treatment in detention are pending before the Court. Some steps have been taken to address this issue that remains entrenched and impacts rehabilitation efforts.

Recent progress includes the launch of an electronic registry to document cases of ill-treatment, with 2 170 incidents recorded in 2025, and installation of 74 CCTV cameras across eight institutions. A systematic inspection programme covering all 17 penitentiary institutions started in January 2026.

An increasing number of prisoners have access to paid work and vocational training, particularly juveniles. Medical services in prisons remain insufficient, despite improvements in the quantity of medical equipment and certified medical services. Moldova needs to advance on the implementation of its Roadmap against Criminal Subculture 2024-2027.

The UN Human Rights Committee and the NPM raised concerns over underreporting ill- treatment in police custody, due in part to fear of retaliation, and the reclassification of these acts as lesser criminal offences. The lack of independence of the medical services within these temporary detention facilities, which are placed under the Ministry of the Interior, further contributes to ill-treatment cases being insufficiently documented.

Detention facilities are overcrowded and largely not adapted for persons with disabilities with special needs, including individuals with mental health disorders, disabilities and those at risk of extreme violence or self-harm. Deficiencies in infrastructure and human resources persist. There were approximately 2500 penitentiary staff on 1 September 2026, while the system foresees 2900 staff units.

Execution of criminal sanctions

The system for the execution of criminal sanctions (including probation) is still inadequate.

Moldova remains one of the countries in Europe with the highest incarceration rates (255 inmates per 100 000 inhabitants in 2025), with the number of inmates reaching 6 334 in January 2026. The number of persons in pre-detention custody remains high. Alternative probation measures, which are also relevant to

reducing prison overcrowding, are needed.

The lack of institutional independence of healthcare services in places of detention remains a concern, as medical personnel in police custody and penitentiary institutions are

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subordinated to the Ministry of the Interior and the Ministry of Justice respectively.

Moldova has adopted a roadmap for the transfer of responsibilities for the penitentiary medical system from the Ministry of Justice to the Ministry of Health, as recommended by the CPT. In September 2026, an interinstitutional working group has been established to pilot the reform.

Protection of personal data

The law on personal data protection, adopted in 2024, entered into force in 2026, harmonising Moldova’s regulatory framework with the General Data Protection Regulation (GDPR). While the introduction of this law has significantly expanded the mandate of the National Centre for Personal Data Protection, its human resources, technical and financial capacities have not increased in parallel and therefore remain limited. Since Moldova made further progress in August 2026, with the adoption of the law on the protection of personal data processed for crime prevention, aligning with the EU Law Enforcement Directive. Moreover, Moldova has ratified in May 2026 the second Protocol of the Council of Europe Convention 108 for the protection of individuals with regards to the automatic processing of personal data.

Moldova should still implement EU standards on contractual clauses between operators and

processors.

Freedom of thought, conscience and religion

Moldova provides adequate legal guarantees on freedom of religion or belief. No breaches of freedom of thought, conscience and religion were reported.

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Freedom of expression and media freedom

Overall, Moldova provides adequate legal guarantees on freedom of expression and the enabling environment for the free, independent and professional media operation have been further strengthened.

Intimidation of journalists

Instances of intimidation by private actors, including verbal attacks by political figures, as well as aggressive behaviour of protesters towards journalists have decreased over the reporting period, with 37 reported cases in 2025 vs 66 cases in 2024. Three criminal cases were initiated in relation to threats against journalists. Further efforts are required to ensure consistent investigation and judicial follow-up. In July 2026, Moldova adopted a set of amendments to provide legal safeguards against Strategic Lawsuits Against Public Participation.

Journalists still face frequent obstructions in Gagauzia. Journalists from the right bank remain restricted from entering the Transnistrian region by the de facto administration and face risk of detention.

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Amendments to the Criminal and Contravention Codes aiming to strengthen the protection of journalists against intimidation, threats and violence, particularly online, entered into force in February 2026. An inter-ministerial action plan on journalists’ security was adopted in April 2026 to enhance coordination between law enforcement, prosecution services and media as well as to put in place clearer procedures for prevention and response to threats or harassments.

Legislative environment

Freedom of expression is generally ensured and the legislative environment has been further aligned the EU acquis and European standards.

A new law on mass media was adopted in October2026, with the aim to ensure further alignment with the European Media Freedom Act and extending ownership transparency requirements to print and online media. Moldova should fully align the Audiovisual Media Service Code (AVMSC) to EU acquis and all Venice Commission recommendations.

Moreover, Moldova should continue implementing steps to support national authorities to fulfil their regulatory function upon accession and enable civil society to support implementation of the European Media Freedom Act and the Digital Services Act. Operational readiness will require institution-building, awareness-raising and stakeholder engagement.

The Council of Europe assessed overall positively the provisions of the law on Strategic Investments and issued a recommendation, subsequently adopted by Moldova as amendment, to narrow the grounds under which broadcasting content can be assessed as dangerous for national security.

Moldova has adopted a legislation with the aim of aligning with the EU Anti-SLAPP legal framework.

Implementation of legislation/institutions

The capacity of the Audiovisual Council (AC) has been strengthened, with a new department for monitoring nonlinear audiovisual media and video-sharing platforms. The AC applies the provisions of the AVMSC. Although the number of fines is low, their application rate rose significantly. Overall, 323 sanctions were applied to media providers and distributors: 103 public warnings, 215 fines and 5 advertising suspensions. Legal remedies to contest them are effective.

The Criminal Code lays down criminal liability for the intentional obstruction of media activity. However, law enforcement agencies have rarely invoked this provision.

The Centre for Strategic Communication and Countering Disinformation plays a central role in monitoring FIMI and coordinating interinstitutional response measures.

Public service broadcaster

With the amendments to the Audiovisual Media Service Code in 2025, the independence and financial sustainability of the public service broadcaster have improved. The AC is responsible for appointing members of the supervisory body Teleradio-Moldova, which was restructured and whose membership increased from seven to nine members.

The director of the Public Service Broadcaster resigned during the reporting period and a competition has been launched to replace him.

The regional public broadcaster of Gagauzia (GRT) remains subject to strong political influence from the local executive committee and the People’s Assembly. Financial links to the fugitive oligarch Ilan Șor were also reported. The AC sanctioned GRT with a fine of 30 000 lei in September 2025 for the dissemination of false information, slander and incitement to

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discrimination in a broadcasted speech of Ilan Șor.

Economic factors

A small advertisement market, lack of subsidies and difficulty in addressing unfair advertising practices represent serious issues for independent media. In the reporting period, most TV media providers faced financial strain. As a result of the competition for granting subsidies launched in 2025 by the Media Subsidy Fund, approximately 11.3 million lei were disbursed to 23 media outlets. In 2026, Moldova plans to fund 22 media projects, focusing mainly on promoting democracy and European integration and aiming to address media literacy and combat disinformation, including in the languages of national minorities. These funds aim to partially mitigate financial uncertainty in the sector.

The AVMSC contains specific provisions aimed at ensuring transparency of ownership, particularly within the audiovisual media sector.

Internet

The legal framework regulating online space in Moldova is limited and focuses on technical aspects. Amendments to the Criminal Code and the Contravention Code that entered into force in February 2026. These changes criminalise the obstruction of media activity through information systems (e.g. cyberattacks, unauthorised access, digital sabotage), with penalties such as fines or prisons’ sentences. Since 2022, the Security and Intelligence Service has blocked nearly 60 websites linked to Russian propaganda or the fugitive oligarch Ilan Șor.

Professional organisations and working conditions

The working conditions of journalists in Moldova have not improved significantly in recent years and remain challenging. Financial sustainability remains an issue and leads many journalists to leave the profession. Only two media NGOs, the Independent Journalism Centre (IJC) and the Independent Press Association (IPA), carry out visible activities to protect the rights of journalists.

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Freedom of assembly and association

Moldova provides adequate legal guarantees to freedom of assembly and association and regulation of assemblies is adequate.

The Constitution safeguards the right to freedom of assembly, which is further regulated by the Law on assemblies and non-commercial organisations. There is no pending case to address with regards to the ECtHR’s judgments on freedom of assembly and association.

In December 2025, Moldova adopted a law on Public Events. Civil society organisations have raised concerns over the vague definitions and potentially burdensome notification procedures it has introduced for event organisers.

Legal provisions, introduced in 2023, criminalising ‘separatism’ could negatively affect freedom of assembly and association. Moldova should address relevant OSCE/ODIHR recommendations.

Property rights

The legal and institutional framework for enforcing property rights is broadly in place. Property rights have continued to be affected by systemic challenges, particularly regarding legal certainty and administrative efficiency. The share of applications submitted to the ECtHR pertaining to the non-enforcement of court judgments on property matters remains high. Out of

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27 Moldovan applications communicated to the ECtHR in 2025, seven concerned alleged violations of the right to protection of property in civil, administrative or criminal proceedings.

Non-discrimination

The legal and institutional framework on non-discrimination is comprehensive but remains to be fully aligned with the EU acquis. Moldova has prepared two legislations aiming to transpose the Directives on standards for equality bodies and the Racial Equality Directive. Moldova did not ratify the Protocol 12 to the ECHR providing for a general prohibition of discrimination. Most instances of discrimination registered by the Equality Council relate to discrimination in the workplace and access to goods and services.

Anti-racism and hate offences

The legal and institutional framework on hate crime and hate speech remains to be fully aligned with European standards, in particular on combating racism and xenophobia by means of criminal law. In 2025, the police recorded nine cases of hate speech motivated by prejudice. A unified methodology for data collection on hate crime incidents, including disaggregation by bias and type of offence, needs to be put in place.

The National Programme on Ensuring Human Rights 2024-2027 is the national strategic framework in the fight against discrimination, hate speech and hate crimes, while there is no specific strategy on anti-racism. The Digital Transformation Strategy of Moldova 2023-2030 aims to ensure the promotion and protection of online rights and freedoms. However, the capacity to detect hate speech and/or cases of incitement in online information systems, including on social networks, remains limited.

Compared to the 2021 elections period, the number of cases of hate speech was 1.7 times higher during the 2025 parliamentary election.

Gender equality

The legal and institutional framework on gender equality and combating gender- based violence is partially aligned with the EU acquis, while implementation needs to be improved.

Moldova continues to implement its national programme on gender equality. One of the main achievements of the Programme for Promoting and Ensuring Equality between Women and Men 2023- 2027 was the integration of the gender perspective into further sectoral policies. The mid-term evaluation review of the National Programme for the Prevention and Combating of violence against Women and Domestic Violence confirmed its high relevance in Moldova, with important progress achieved in normative and institutional frameworks. Some challenges remain with regards to the capacity of specialist support services for

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victims, resources, unequal territorial access and data collection.

The National Agency and the National Coordinating Council for Preventing and Combating Violence against Women and Domestic Violence continue to function but still lack capacity.

During the reporting period, Moldova approved a regulation on the prevention and combating of violence and harassment at work in public authorities. The gender equality mechanism with gender focal points and coordination groups designated at national and local level is in place. At national level, however, these remain insufficiently regulated and weakly institutionalised across ministries.

On 14 February 2026, new criminal offences, including femicide and forced marriage, entered into force. These amendments also reinforced victim protection mechanisms, including by extending the duration of protection orders, introducing electronic monitoring of perpetrators, and guaranteeing victims’ access to legal assistance.

The development of the first national integrated gender-based violence information system, Vio Data, progressed with the approval of national indicators in line with the methodology of the European Institute for Gender Equality and the procurement of system development.

Shelter capacity for survivors of gender-based violence increased, extending the total number of available places to 214, against the 260 under the Istanbul Convention standards. However, geographical coverage remains limited and barriers to accessing shelters persist, particularly for women with disabilities and Roma women.

Some progress was made in strengthening specialised support services for victims of sexual

violence. Their availability and geographical coverage remain insufficient, and further efforts are

needed to ensure their sustainable integration into the national system and adequate state

funding.

Rights of the child

The legal and institutional framework on the rights of the child is largely in place and in line with

the EU acquis and international frameworks. Implementation and enforcement need to be

improved towards an integrated child protection system and to ensure the effective realisation of

children’s rights. Over the reporting period, Moldova strengthened the child protection system

against violence, neglect and exploitation, introducing stricter safeguards for professionals

working with children and reinforcing prevention and intervention mechanisms. In addition,

legislative amendments were adopted to strengthen child protection and improve the

enforcement of court decisions concerning the exercise of parental rights.

Quality standards for social services, including those targeting children, were updated, alongside the recruitment of 200 child protection specialists.

Moldova has prepared legislation aiming to align with the EU directive on procedural safeguards for children who are suspects or accused persons in criminal proceedings.

As concerns child-friendly justice, some progress was made in expanding integrated, child- friendly support services for child victims of crime. However, their availability and geographical coverage remain limited, while specialised services for children who are suspects or accused persons in criminal proceedings are still lacking.

Further progress has been achieved in the deinstitutionalisation of children. 225 new admissions to residential care institutions were recorded and 339 children were deinstitutionalized. 344 children remain in institutional care at year-end, including 98 with disabilities. Moldova should make further progress by extending the number of foster carers,

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preventing family separation and new placements, accelerating transitioning to family-based and community-based care, and closing the remaining large residential institutions. Children with disabilities remain disproportionately affected by poverty, violence, family separation and institutionalisation, and continue to face limited access to specialised support services, and barriers to inclusive education. The placement of children with intellectual disabilities in psychiatric institutions continues to be a systemic concern.

Persons with disabilities

The legal and institutional framework for the rights of persons with disabilities remains to be fully aligned with the EU acquis and the UN Convention on the Rights of Persons with Disabilities (UNCRPD), while implementation and enforcement need to be improved. In June 2026, Moldova adopted the National Social Inclusion Programme of People with Disabilities, that will cover the period 2026-2030. The programme aims to ensure equal access to services, support for independent living and integrates specific deinstitutionalisation objectives. The National Council for the Rights of Persons with Disabilities should resume activities to follow up on the implementation of the UNCRPD.

A Law on Accessibility Requirements for Certain Products and Services was adopted, introducing mandatory accessibility standards and compliance obligations.

Deinstitutionalisation of persons with disabilities continued at a slow pace. Large residential institutions for adults with disabilities remain operational and continue to consume a significant share of public budget, while community-based services supported independent living expanded only modestly. Further efforts are needed to develop and implement a costed national deinstitutionalisation roadmap and progressively redirect resources from institutional care towards accessible, person-centred community-based support services.

Accessibility remains insufficiently enforced and funded, with significant barriers persisting in the build environment, transport, websites and digital services.

Supported decision-making mechanisms remain underdeveloped, limiting the ability of persons with disabilities to exercise their legal capacity on an equal basis with others, including in relation to access to justice, consent to services, and independent living.

LGBTIQ+ persons

The legal protection of the rights of LGBTIQ+ persons is largely adequate, but LGBTIQ+ persons continued to face discrimination, including hostile rhetoric, and social acceptance in the country remains fragile and easily reversible. Moldova does not provide for legal recognition and protection of same-sex couples, as required by relevant ECtHR case-law.

A LGBTIQ+ equality action plan or strategy remains to be adopted.

In 2026, the Pride March in Chișinău took place without any security incidents, although counter-protests and cases of verbal abuse were reported. During the 2025 parliamentary election period, recorded cases of homophobic speech increased almost threefold compared with the 2021 parliamentary elections, from 39 to 106 cases. Some political actors and the Moldovan Orthodox Church continued to contribute to hostile public discourse against the LGBTIQ+ community.

Procedural rights of suspects and accused persons and rights of victims of crime

Moldova has prepared legislation with the view to align with the EU directives related to the rights of victims of crimes and procedural rights. Moldova has also adopted the law strengthening the criminal liability of legal persons on 24 July 2026.

Some systemic issues in practice continue to affect the right to a fair trial. While the ECtHR

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found 32 violations in 2025, several cases remain under enhanced supervision due to procedural rights concerns. Common issues include inadequate reasoning in convictions, reopening of final judgments after late appeals by prosecutors. Challenges remain in ensuring access to justice for persons belonging to minorities and people with disabilities. Legal aid is widely available, with increased training to improve its quality.

Protection of minorities

The legal and institutional framework for the rights of persons belonging to minorities is incomplete, although these persons are broadly integrated. New policy frameworks to support minorities should be developed and the dialogue between the authorities and ethnic and linguistic minorities enhanced. The Agency for Interethnic Relations has been placed under the authority of the Ministry of Education. Its staff and financial capacity require strengthening.

Moldova has adopted the Action Plan for the Implementation of Multilingual Education in schools with instruction in minority languages for 2025-2030. Institutional efforts to revive the use of the Gagauz language were reinforced, including with a dedicated National Action Plan for 2026-2027, covering all education levels in the region and expanding educational resources. In February 2026 a similar action plan was adopted for learning and promoting the Ukrainian language.

Roma

The Roma in Moldova continue to suffer from racism and discrimination.

Over the reporting period, Moldova has strengthened its legal and institutional framework on Roma. Progress has been achieved with the appointment of a new National Roma contact point. A new programme dedicated to supporting the Roma population in Moldova for 2027- 2030 has been developed. The law on Roma community-based mediators has been amended, creating more favourable recruitment, training, work and financial conditions for the mediators. Their role has also been strengthened to improve access to education and services for Roma communities. Roma pupils and students also benefit from merit-based scholarships, with the number of beneficiaries steadily increasing in recent years.

The exceedingly low level of school attendance of Roma refugee children remains a major concern. Roma displaced persons from Ukraine continue to face challenges in relation to housing, employment, documentation, education and discrimination in reception centres.

Citizenship rights

The law on citizenship entered into force in December 2025. This has led to some controversy, as it introduced new criteria for obtaining Moldovan citizenship by recognition. The new provisions would have adverse effects predominantly on stateless and marginalised persons, as well as ethnic or linguistic minorities. In February 2026, new amendments were proposed to introduce exemptions and clarifications to these unintended shortcomings.

2.2.2 Chapter 24: Justice, freedom and security

The EU has common rules for border and migration management, visa policy and asylum. Schengen cooperation entails the lifting of border controls inside the EU. There is also cooperation in the fight against serious and organised crime and terrorism, and judicial, police and customs cooperation, all with the support of the EU Justice and Home Affairs agencies.

Fight against serious and organised crime

The legal framework on serious and organised crime is partially aligned with the EU acquis. The capacity to fight against serious and organised crime needs to be improved.

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General framework

Legal alignment, strategic and institutional frameworks

Moldova is partially aligned with the EU acquis in the field of police cooperation and the fight against organised crime. The country continued to implement its general home affairs strategy for 2022-2030 and its six sectoral development strategies for 2026-2030 covering organised crime, public order, safety, civil protection, migration and education/ethics/digitalisation, which were all updated in December 2025. In August 2026, Moldova upgraded its national serious and organised crime threat assessment (SOCTA) and made some progress aligning its engagement in EMPACT with its national and regional threat landscape.

The high turnover rate and significant number of vacancies in law enforcement agencies remains an issue, especially in light of increasing threats. Appropriate budget, equipment and specialists are needed. Moldova strengthened the criminal asset recovery and confiscation framework, partly aligning it with the EU acquis on asset recovery and confiscation and on the mutual recognition of freezing and confiscation orders. It broadened confiscation rules, improved seizure, enforcement and repatriation mechanisms, and expanded the role of the Criminal Asset Recovery Agency (CARA), which is now authorised to conduct financial investigations at trial stage. CARA continues to conduct parallel financial investigations, while stand-alone money-laundering investigations fall under NAC’s competence. Alignment with the acquis on asset recovery and confiscation needs to continue.

The national register for seized and confiscated assets is now fully populated and all relevant institutions can access the data, contributing to greater transparency and more effective tracking of assets throughout legal proceedings. In August 2026, Moldova conducted further reforms to enable social and public-interest use of confiscated assets.

Internal integrity measures in law enforcement bodies also continued to advance, including integrity training, corruption reporting mechanisms and internal investigations within the Ministry of Internal Affairs. Nonetheless, corruption among law enforcement authorities remains a concern, with the police perceived as the most corrupt institution in the country and several specialised officers, including investigators, under investigation and/or removed from office due to alleged involvement in corruption cases. Integrity measures should be risk-based and focused on functions exposed to organised and financial crime, with transparent reporting on internal investigations, disciplinary measures and criminal referrals.

Implementation and enforcement capacity

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Moldova made further efforts to combat serious and organised crime. On organised crime, the track record of investigations, indictments and convictions improved between 2023 and 2025: investigations more than tripled (57 to 206) and final convictions reached a three-year high (108), while indictments grew only modestly (50 to 85). Regarding serious crime, the track record of investigations, indictments and convictions

improved between 2023 and 2025: investigations more than doubled (874 to 1 825) and final convictions rose by 44% (380 to 548), while indictments also grew substantially (547 to 637). Moldova must strengthen its response to complex cases by improving continuous law enforcement training and identifying skill gaps. The country should maintain progress in detecting, preventing and prosecuting serious crimes, such as trafficking in human beings, child sexual abuse, drug trafficking, cybercrime, money laundering and firearms trafficking, to secure more final convictions.

Intelligence-led policing needs to be further developed, and investigations should be launched more proactively on the basis of intelligence. More equipment and personnel are needed to reduce response time in organised crime investigations, including cross-border ones. Interagency cooperation also needs strengthening.

In 2025, the Criminal Assets Recovery Agency (CARA) significantly stepped up its asset recovery efforts. It seized 1 066 assets worth MDL 706.2 million (EUR 34.73 million). EUR 760

000 in confiscated funds were transferred to the state budget. Meanwhile, the courts issued 562 confiscation decisions. CARA carried out 312 parallel financial investigations (PFIs) (190 in 2024, and 119 in 2023). In the first half of 2026, CARA seized 382 assets worth EUR 11.61 million.

In 2025, the General Police Inspectorate (GPI) placed 11 adults and three minors in witness protection programmes.

Moldovan law enforcement authorities have made some progress in dealing with gender- based violence cases, including adopting a victim-centred approach in a more systematic manner.

Law enforcement cooperation

Law enforcement cooperation was further strengthened, building on good cooperation with Europol and the European Union Agency for Law Enforcement Training (CEPOL). Moldova is encouraged to make full use of CEPOL’s support in the reform of its training curriculum by integrating the knowledge and skills acquired into its national law enforcement training system.

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Europol continues to deploy guest officers to Moldova, and, since January 2026, a Moldovan liaison officer has been posted to Europol’s headquarters. Cooperation has been positive in several crime areas such as drug trafficking (especially synthetic drugs), organised property crime, migrant smuggling and fraud. Moldova continued its active involvement in the European Multidisciplinary Platform Against Criminal Threats (EMPACT) and its new cycle priorities. It took part in 154 operational actions in the period 2024-2025, a 50% increase compared with 2023. Moldova has taken the initiative to propose operational measures to its EU partners during the renewal of the EMPACT cycle. For the 2026-2027 operational action plans (OAPs), Moldova will engage in 104 actions across 11 out of 13 OAPs, with particular emphasis on synthetic drugs and new psychoactive substances (YD/NPS), firearms, the most threatening criminal networks and individuals (MTCN-I), cybercrime, and trafficking in human beings (THB). Additionally, Moldova is a co-leader for three operational actions under SYD/NPS, THB and Cyber operational action plans and an action leader in one operational action under SYD/NPS operational action plan. This reduced but more targeted participation seems aligned with its threat landscape, and Moldova should continue focusing its EMPACT participation where it can effectively contribute.

Moldova has rolled out SIENA (Secure Information Exchange Network Application) to several law enforcement authorities and information exchanges facilitated through the system have increased.

Moldova has made progress in implementing the law on the use of passenger name record (PNR) data, which entered into force in January 2025 and aims to align with the relevant EU acquis. In 2025, the Passenger Information Unit systematically monitored advance passenger information (API) and PNR data from 30 air carriers, covering over 5.7 million passengers and more than 39 000 flights. Full implementation requires ongoing progress in monitoring and capacity building, including equipment procurement.

Judicial cooperation in criminal matters

Judicial cooperation in criminal matters has improved but further efforts are needed, including to align the legal framework with the EU acquis.

Mutual legal assistance in criminal matters intensified between 2023 and 2025: total requests rose by 71% (800 to 1 366), driven mainly by incoming requests, which nearly doubled (432 to 844), while outgoing requests dipped in 2024 before recovering to 522.

Moldova maintained good cooperation with partners concerning mutual legal assistance (MLA) in criminal matters for the purpose of asset recovery in particular. CARA sent 181 requests to foreign jurisdictions while incoming requests increased by 80%.

In November 2025, the status of the Liaison Prosecutor at Eurojust was strengthened and since July 2026 a new Liaison Prosecutor has taken office.

In 2025, the Liaison Prosecutor managed 100 cases of international legal cooperation in various forms, compared with 79 cases in 2024 (+26%). Between September 2025 and March 2026, Moldova was involved in 26 new cases at Eurojust, including five as requesting country. Most cases were related to organised crime, money laundering and fraud. Moldova participated in 15

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joint investigative teams, including four new ones.

Moldova continued to cooperate with the European Public Prosecutor’s Office (EPPO) based on the relevant working agreements, but in 2025 there were no incoming EPPO mutual legal assistance requests. However, the EPPO had one active case with links to Moldova at the end of 2025.

Crime areas

Investigation and criminalisation of money laundering

Moldova stepped up its efforts to strengthen the financial crimes investigation system. Ahead of the September 2025 presidential elections, Moldova showed effectiveness and proactivity in investigating interference related actions, including illegal political financing, vote buying and financing of unrest. On that occasion, Moldova also adopted an effective national coordination approach. In June 2026, Moldova modified the legal framework for investigating and prosecuting money laundering and other financial crimes. The law modified NAC’s mandate to include the possibility of pursuing the detection of stand-alone money laundering, facilitating the prosecution of latent financial crimes. Additionally, a Roadmap of complementary measures to strengthen the entire financial crimes investigation system was adopted. NAC was allocated additional staff and budget in June 2026 to support it in implementing these reforms. In August 2026, Moldova adopted a unified national mechanism for parallel financial investigations, harmonising rules for assessing, launching, planning, conducting and coordinating such investigations.

Cybercrime

Moldova developed a sectoral strategy on cybersecurity in December 2025, which includes cybercrime. Moldova made progress in aligning with the EU acquis in this sector by ratifying the Second Additional Protocol to the Cybercrime Convention on enhanced cooperation and disclosure of electronic data in August 2026. Moldova now needs to align the national legal framework with the protocol’s provision. The Ministry of the Interior’s cybercrime unit and central forensic laboratory operational capacities should be further strengthened.

More efforts are needed to strengthen the detection and traceability of cybercrime data and the prosecution of cybercriminals. Since September 2025, an online platform for individuals to report on cybercrime was operationalised.

Child sexual abuse

In February 2026, Moldova adopted a law to strengthen the legal framework on preventing and combating sexual exploitation and abuse of minors, including through the internet, in line with the EU acquis in this area. Moldova is encouraged to improve its operational capacity to detect, investigate and prosecute child sexual abuse while ensuring support for victims and raising public awareness.

The institutional framework, monitoring mechanisms and interinstitutional coordination also need to be further strengthened in line with the recommendations of the Lanzarote Committee.

Trafficking in human beings

The legal framework for trafficking in human beings (THB) is partially aligned with the EU acquis. The country adopted a roadmap to implement the recommendations from the 2025 Council of Europe’s Group of Experts on Action against Trafficking in Human Beings (GRETA) 4th round evaluation report. Moldova also made further progress in EU acquis alignment, namely by adopting the law on preventing and combating trafficking of human beings and victim protection in July 2026.

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Moldova has stepped up its fight against trafficking through stronger interagency coordination, monitoring, and EU cooperation under EMPACT. To further advance these efforts, it must strengthen law enforcement’s investigative capacity, particularly to combat trafficking of children both online and offline in a proactive manner, as well as close gaps in early victim identification and support.

Regarding the track record, the number of identified trafficking victims fell by over a third between 2023 and 2025 (169 to 108), driven by fewer adult victims (144 to 83), while the number of child victims remained stable (25, 30, 25).

Migrant smuggling

Moldova remains primarily a transit country. Cooperation with EU agencies, Member States and neighbouring countries has improved, including through stronger interagency coordination. Moldova needs to boost its operational capacity to detect incidents along green borders and the administrative line. This requires further investment in detection equipment, risk analysis and intelligence-led policing.

Moldova takes part in the Global Alliance to Counter Migrant Smuggling and participated at the Global Alliance’s second conference in December 2025 and the Senior Officials’ Meeting of the Global Alliance in July 2026. Moldova has endorsed the Global Alliance Joint Declaration.

Trafficking in firearms

Moldova adopted a national programme on Small Arms and Light Weapons (SALW). It established an inter-agency commission in line with international standards and operationalised the National Firearms Focal Point (NFFP). Moldova also adopted national legislation aimed at aligning its legal framework with the Firearms Directive and demonstrated its commitment to the different operational actions in which it participates under the EMPACT Firearms and Explosives framework. Moldova is encouraged to further develop the NFFP’s capacity in line with EU standards, finalise the set up of the SALW national registry, and fully align with the remaining EU acquis, including the relevant implementing acts.

Cooperation in the field of drugs

The legal framework for cooperation in the field of drugs needs to be further improved.

Moldova’s institutional model of cooperation in the field of drugs is broadly in line with EU standards. The legal and institutional framework on the prevention and combating of the illegal circulation of drugs has been improved, including with the NPS and precursor legislation. Further alignment with the EU acquis is still needed and the national early warning system (NEWS), and National Drugs Observatory (NDO) need to be further capacitated. Moldova must strengthen its capacity to detect, monitor and share high-quality information on new psychoactive substances and precursors, as well as reinforce storage and destruction capabilities.

While cooperation with the EU Drugs Agency (EUDA) remains strong, the quality of data provided requires improvement. EUDA and Moldova signed a working arrangement, which needs to be translated into operational action. Moldova also collaborates with Europol in this

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area.

Moldova remains a transit country for drugs. In 2025, drug-related offences increased compared with 2024, as did final convictions and court decisions. To counter this, Moldova must intensify drug trafficking investigations and implement measures to prevent, detect and address corruption within law enforcement. Moreover, Moldova must put in place effective preventive

measures to counter the domestic drug use.

During the reporting period, Moldova maintained strong cooperation on drug-related issues with neighbouring countries and beyond, sharing information via SIENA. It also participated in the EMPACT Operational Action Plan on synthetic drugs and new psychoactive substances (NPS), in which Moldova will be an action leader for 2026-2027. To further strengthen its response, Moldova should deepen operationalcooperation using an interagency approach and continue its engagement with EMPACT and Europol.

Moldova should also expand forensic capacity, particularly in laboratory services for NPS detection. At the same time, it must enhance addiction awareness, prevention, treatment, harm reduction, rehabilitation and social reintegration, ensuring full compliance with data protection and fundamental rights.

There are eight treatment centres for drug addiction, and access to

treatments is available in 13 prisons. During 2025, 137 new patients registered with the national opiate pharmacotherapy programme.

Counterfeiting of the euro

Moldova’s legislation on the suppression of counterfeit currency is partially aligned with the EU acquis.

Moldova aligned further with the EU acquis by updating its Criminal Code and becoming a party to the 1929 Geneva Convention for the suppression of counterfeiting currency. It should continue its efforts to set up a national central office (within the INI General Police Inspectorate).

Counter-terrorism, prevention and resilience

The legal frameworks for the fight against terrorism and for countering violent extremism are

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partially aligned with the EU acquis.

Fight against terrorism and prevention of radicalisation

The fight against terrorism is mainly addressed from the angle of combating terrorist financing (see also Chapter 4, Free movement of capital). In practice, the Anti-Terrorism Centre within the Security and Intelligence Service is in charge at the national level, ensuring institutional cooperation in this field. As terrorism threats are not identified as a major national concern, no specific legal or institutional reforms are currently envisaged.

Legal alignment, strategic and institutional frameworks

Moldova’s anti-terrorism legislation is partially aligned with the EU acquis. Compliance with the EU acquis on explosives precursors should still be ensured.

There is no dedicated national strategy in place on the fight against terrorism, as Moldova’s national security strategy addresses terrorism and terrorist financing. There are no plans to set up a dedicated strategy, due to the limited extent of the issue. Nonetheless, Moldova adopted a new National Programme for the Prevention and Combating of Money Laundering and Terrorist Financing (2026-2030) and adopted legislation to prevent terrorist financing in July 2026. Its current national programme for anti-terrorist protection measures does not align with the EU acquis on critical entity resilience. Moldova should address this gap when renewing the programme post-2026. Moldova should also implement the Regulation on Terrorist Content Online. In May 2026, Moldova signed the Protocol amending the Council of Europe Convention on the Prevention of Terrorism.

The institutional framework for the fight against terrorism needs to be improved, including by establishing competences, tasks and responsibilities for institutions working on preventing and countering radicalisation and violent extremism.

Implementation and enforcement capacity

The fight against terrorism and the countering of violent extremism are broadly satisfactory. Moldova has a national terrorist alert system with four levels, currently set at a moderate threat level. Moldova is encouraged to apply the methodology developed with the support of the Counter Terrorism Support Network (CTSN) to prepare a domestic terrorism trend and situation report.

Critical infrastructure protection

Legal alignment, strategic and institutional frameworks

The legal framework for critical infrastructure protection and the resilience of critical entities is partially aligned with the EU acquis. In February 2026, a new law on critical infrastructure protection entered into force, aligning partially with the EU acquis on the resilience of critical entities. However, the law is not yet fully aligned with the EU acquis. In July–August 2026, Moldova adopted a set of government decisions establishing an interinstitutional working group and key methodological, security and threshold frameworks to identify, assess and protect national critical infrastructure and strengthen responses to national security threats.

Implementation and enforcement capacity

The protection of critical infrastructure needs to be improved. Moldova has started identifying critical entities and a subdivision of the Ministry of Internal Affairs was designated as the central coordinating authority for critical infrastructure protection.

Migration and asylum

Legal and irregular migration and returns

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The legal framework for management of legal and irregular migration is partially aligned with the EU acquis. The management of legal and irregular migration needs to be improved.

Legal alignment, strategic and institutional frameworks

Moldova adopted and started implementing the new sectoral development programme for managing migration flows, asylum and integration of foreigners for 2026- 2030. Moldova should continue operationalizing the National Programme for the Phased Integration of Foreigners through the implementation of the roadmaps developed through the Education, Health, and Inclusion & Solutions Working Groups of the Refugee Coordination Forum. During the reporting period, Moldova also updated both its legal and irregular migration frameworks. The law on foreigners was amended to partially align with EU directives on third-country nationals’ stay, while also strengthening return procedures.

In 2026, Moldova extended temporary protection for displaced persons from Ukraine until March 2027.

Implementation and enforcement capacity

Irregular movements have been lower in 2025 than 2024 and the trend has been declining since its peak in 2022 (see Graph 18). As concerns readmission with the EU, the implementation of the EU-Moldova readmission agreement is continuing. In 2025, 5005 Moldovan citizens were returned from the EU. Moldova reported 425 voluntary and 70 forced returns.

Asylum

While the legal framework on asylum in Moldova is partially aligned with the EU acquis as it was in force until 12 June 2026, Moldova should focus on developing its national legal framework and operational capacities on migration and asylum to align with the Pact. The management of asylum is broadly satisfactory.

Legal alignment, strategic and institutional frameworks

Moldovan legislation on asylum is partially aligned with the EU acquis, and the country is party to the international conventions.

Moldova strengthened its asylum system through amendments to the Asylum Law that entered into force in January 2026. These established procedures for granting material reception conditions to applicants for international protection and mechanisms for applying the safe country of origin and safe third country concepts. To make it fully operational, Moldova should continue improving its national referral system for applicants with special needs.

The temporary protection granted to displaced persons from Ukraine aligns with EU standards, providing access to residence rights, identity documentation, education, the labour market and basic healthcare. As of 31 August 2026, 57 731 displaced persons from Ukraine were registered under Moldova’s temporary protection regime, many of them older persons or persons with

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disabilities. Resource constraints remain the primary challenge for national authorities processing international protection requests, compounded by the phased withdrawal of humanitarian aid. In 2026, Moldova updated its contingency planning.

Implementation and enforcement capacity

Following Russia’s war of aggression against Ukraine, Moldova has become both a transit and destination country for those fleeing the conflict.

In 2025, Moldova received 2 587 asylum applications, down from 4 101 in 2024. Despite this decrease, the number remains high relative to Moldova’s limited resources. To address this, authorities should continue strengthening the General Inspectorate for Migration (GIM) with additional specialised staff and equipment to ensure adequate assistance and basic services for migrants and applicants for international protection. Significant resources are needed to upgrade the GIM to EU standards. The GIM’s digital systems also require upgrades to ensure interoperability with other national and EU IT systems.

Moldova maintains a hosting capacity of 900 places in 9 Refugee Accommodation Centres (RACs), which were hosting 528 refugees as of August 2026. More RACs could be opened in the event of a crisis. Access to information on asylum procedures and legal counselling needs improvement, particularly at border crossing points and Chișinău International Airport to prevent potential cases of refoulement and unnecessary detention. Asylum case management should be further harmonised and the appeals system strengthened to align with EU standards. Moldova cooperates effectively with the European Union Agency for Asylum (EUAA), and will benefit from enhanced support following the first Roadmap signed between Moldova and the EUAA in September 2026.

Visa policy

The visa policy is not fully aligned with that of the EU, in particular with the list of countries

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whose nationals require a visa to enter the EU. Moldova’s list of visa-free countries diverges from that of the EU for 11 countries: Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Qatar, Russia, Tajikistan, Türkiye, Uzbekistan, and Vanuatu.

In the reporting period, Moldova made progress in aligning its visa policy. In December 2025, Moldova adopted the law on denunciation of the Commonwealth of Independent States (CIS) Agreement on visa-free travel. It represents a preparatory step towards further harmonisation of Moldova’s visa list with that of the EU.

Further progress on visa policy alignment is required, and pending full alignment, a more rigorous screening of visa-free arrivals of third-country nationals should be conducted, particularly those potentially presenting a security risk. The European Commission’s eighth report under the visa suspension mechanism from December 2025 concluded that Moldova continues to meet the visa liberalisation benchmarks.

Schengen governance and external borders

The legislative and strategic framework for the management of external borders is partially aligned with the EU acquis. The management of borders needs to be improved in line with European integrated border management principles and in preparation for the Schengen Agreement.

Legal alignment, strategic and institutional frameworks

Given the need to reinforce and establish solid foundations for the Schengen system, it is necessary to continue strengthening the national Schengen governance framework by appointing a national Schengen coordinator. A Schengen action plan covering all aspects related to Schengen preparations should also be adopted.

Moldova implements a national concept for European integrated border management (EIBM), including a four-tier access control model aligned with the European Border and Coast Guard Regulation. In December 2025, it adopted a new Integrated Border Management Programme for 2026-2030, accompanied by an action plan aligned with the EU’s multiannual strategic policy cycle. However, the Programme only partially aligns with the National Schengen Strategy.

The Law on the state border of Moldova must be fully implemented. This includes strengthening the capacity to conduct second-line checks at all border crossing points in line with EU standards, with adequate digital equipment, infrastructure, and specialised personnel. Substantial financial resources are needed to meet basic EU/Schengen criteria.

The General Inspectorate of Border Police has increased staffing for new border crossing points and second-line checks, achieving an overall occupancy rate of 93%. It should continue enhancing its capacity to detect criminal activities, especially drug and arms trafficking.

Moldova remains an active member of the Eastern Partnership Risk Analysis Network, a regional platform for information exchange and intelligence sharing. National procedures related to INTERPOL alerts are harmonised with European procedures.

However, the border police information system still faces security and data protection vulnerabilities. These issues must be addressed alongside the need to ensure interoperability with other law enforcement and national IT systems, in anticipation of a future connection to the EU large-scale IT systems.

Implementation and enforcement capacity

Moldova maintained strong cooperation with Frontex, with information exchange occurring both centrally and through joint points of contact. Cooperation with neighbouring border services in Romania and Ukraine continued through joint patrols and border control measures, including

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customs operations. As of September 2026, there were 86 Frontex-deployed officers at Moldova’s borders with Romania and Ukraine as well as at Chișinău airport on the basis of the status agreement between the EU and Moldova. The renewal of the working arrangement with Frontex is ongoing.

Moldova continued its efforts to train law enforcement institutions on anticorruption measures. In 2025, the border police implemented preventive activities to strengthen institutional ethics, reduce corruption vulnerabilities, and promote professional conduct standards through training and information sessions. During 2025, 49 cases of active corruption were reported, resulting in 22 criminal investigations and six cases sent to court.

Judicial cooperation in civil and commercial matters

Judicial cooperation in civil and commercial matters needs to be improved. This includes acceding to key international instruments: the 2007 Hague Child Support Convention and the 2007 Maintenance Obligations Protocol. In August 2026, Moldova adopted a law to accede to the 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters.

Mutual legal assistance in civil and commercial matters also grew between 2023 and 2025: total requests rose by 41% (253 to 356), driven by incoming requests (207 to 293), while outgoing requests stayed low and volatile (46, 87, 63). During the reporting period, the National Institute of Justice provided training on international judicial cooperation in civil matters as part of its continuous training programme. However, institutional capacities to handle requests in civil and commercial matters require further improvement, as the average processing time currently remains between four and six months.

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2.3. ECONOMIC CRITERIA3

2.3.1. The existence of a functioning market economy

Economic governance

The government remains committed to macroeconomic stability and demonstrates strong willingness to improve economic governance, while some decisive reforms are still pending. Following Moldova’s request in January for a new IMF programme, discussions for a three-year non-disbursing IMF Policy Coordination Instrument (PCI) are ongoing but have stalled since a staff-level agreement was found in May 2026. Amendments to the central bank law were adopted in April 2026 to strengthen the central bank’s independence and institutional setup. The implementation of Moldova’s Reform Agenda under the EU Growth Plan is advancing well.

In March and October 2026, Moldova received the second and third regular instalments of EUR 189 million and EUR 157 million respectively under the Reform and Growth Facility, after successfully completing 44 additional reform steps. In terms of policy areas, Moldova has demonstrated good progress in economic governance, business environment and the energy sector. Key achievements include the adoption of deregulation package, enhanced budgetary transparency requirements, and further development of the electricity market.

Moldova participated in the economic and financial dialogue with the EU in May 2026, following the submission of its third economic reform programme. Implementation of the 2025 policy guidance was partial, with progress on macroeconomic forecasting, fiscal structural reforms, particularly related to spending reviews, and monetary policy. However, progress on increasing

3 Unless otherwise indicated, the data in this section are taken from the relevant national sources (the statistical

office, Ministry of Finance and the central bank).

Table: 2023 2024 2025

Moldova - Key economic figures

GDP per capita (% of EU27 in PPS) 27.8 30.0 29.8 30.1

GDP growth 2.1 1.2 0.3 2.4

Activity rate of the population aged 20-64 (%), total n/ a 58.4 59.1 57.2

male n/a 61.9 60.9 61.3

female n/a 55.3 57.5 53.6

Unemployment rate of the population aged 20-64 (%), total n/ a 4.6 3.9 3.9

male n/a 5.0 3.8 4.3

female n/a 4.2 4.1 3.4

Employment of the population aged 20-64 (annual growth %) n/ a 6.9 2.0 -3.2

male n/a 5.4 -0.3 0.0

female n/a 8.8 4.0 -6.2

Nominal wages (annual growth %) 13.1 16.9 14.6 11.5

Consumer price index (annual growth %) 8.7 13.4 4.7 7.8

Exchange rate against EUR 20.2 19.6 19.3 19.6

Current account balance (% GDP) -10.5 -11.1 -16.6 -19.7

Net foreign direct investment, FDI (% of GDP) 2.6 2.1 2.0 1.8

General government balance, % GDP -2.2 -5.1 -3.9 -3.9

General government debt, % GDP 30.8 34.9 38.1 39.2

Sources: WiiW, National Bureau of Statistics

2017-22

average

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public investment, streamlining tax expenditures, and reforming state-owned enterprises (SOE) was limited.

Macroeconomic stability

The economic recovery, that started in the second half of 2025, faces headwinds from external shocks. Annual real GDP growth in 2025 reached 2.4%, initially driven by a strong harvest and construction, before broadening towards the end of the year as manufacturing and IT recovered. Notably, industry recorded growth for the first time since 2021, driven largely by the extractive industry and food processing, although the signs of strengthening have not yet been sustained long enough to confirm a structural change. Growth was driven by strong private investment, backed by

favourable financing conditions and state support, alongside energy subsidies that shielded households from higher prices. Net exports remained a drag on growth, as agricultural exports only recovered in the second half of 2025 due to improved weather conditions. Real GDP growth slowed to 0.6% y-o-y in Q1-2026, as robust private consumption and a positive contribution from net exports were largely offset by weaker investment, amid the impact of the conflict in the Middle East and renewed upward pressure on energy prices. On the supply side, gains in manufacturing and retail trade were offset by sharp contractions in real estate, IT, and construction. After a growth of only 0.6% y-o-y in the second quarter, real GDP growth is expected to slow down in 2026 particularly due to the spillovers from increased escalation of Russia’s war against Ukraine and the impact of the conflict in the Middle East, higher imported energy prices, and potential second-round effects. Economic growth should pick up again in 2027, provided the impact of the conflict in the Middle East fades. Reforms and investments under the Reform and Growth Facility are expected to materialise from late 2026 onwards, increasing the potential GDP and the country’s resilience to external shocks. Moldova’s economic convergence with the EU has been slow, mainly due to the impact of external crises while absolute poverty rates stabilised around 30%.

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Moldova's external position deteriorated further in 2025, as the current account deficit reached a 16-year high reflecting persistent structural vulnerabilities to external shocks. In 2025, the current account deficit increased to 19.7% of GDP, up from 16.6% in 2024. This mainly reflected a surge in imports due to robust demand as well as a sharp increase in electricity imports after Russian gas supplies to the Transnistrian region, which had been the right bank's main source of electricity before 2025, were cut off. The larger goods deficit was partly offset by a services surplus, from strong IT services exports. During the first quarter of 2026, the current account deficit narrowed compared to Q1 2025 reaching 20.9% of GDP, driven by a reduction in the trade deficit. Remittances declined as share of GDP by 1 pp. to 9.2% in 2025. The widening current account deficit has been primarily financed by net inflows of currency and deposits, trade credits and advances as well as concessional long-term loans from multilateral and bilateral donors. Foreign direct investment (FDI) inflows slightly decreased as a share of GDP from 2.0% of GDP in 2024 to 1.8% in 2025 and remained dominated by reinvested earnings. Official reserves reached EUR 5.4 billion at the end of August 2026, equivalent to almost six months of projected imports, similar to levels end of 2024, and remaining well above the recommended range of 100-150% of the IMF’s reserve adequacy metric. Moldova’s net international investment position has become slightly more negative since the end of 2024 reaching -36.5% of GDP end of Q1 2026.

Inflation moderated in late 2025 before resurging in March 2026 after the escalation of the conflict in the Middle East, prompting the central bank to start tightening monetary policy. Inflation remained well above the central bank's target range of 5% ±1.5 pps. in 2025, reflecting an energy price shock at the beginning of that year. While inflation returned to the target range in January 2026, it re-accelerated thereafter reaching 7% in August 2026. This was driven by a sharp increase in global energy prices following the conflict in Iran and the Middle East, compounded by a depreciation of the domestic currency. As inflationary dynamics stabilised in 2025, the NBM shifted to an accommodative stance from August, gradually reducing the policy rate to 5% by December. Furthermore, the NBM continued to gradually reduce the required reserves ratio, to 18% for domestic currency, and to 26% for foreign

currency in February 2026. However, rising inflationary pressure prompted a gradual increase of the policy rate to 7.5% in August and 9% in September.

Moldova’s fiscal position is characterised by persistently high fiscal deficits and an upward debt trajectory. The 2025 fiscal deficit stood at 3.9% of GDP, below the 5% target, reflecting persistent under-investment. Revenues slightly exceeded expectations on the back of stronger than expected economic recovery. Despite three budget revisions

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and a fiscal stimulus of 2% of GDP through EU energy grants and Growth Plan disbursements, capital expenditure effectively edged up only by 0.1 pps. of GDP to 3.3% of GDP compared to 2024, with capital investment, in the narrow definition used by Moldova,4 rising modestly from 1% to 1.2% of GDP. In 2025, the public debt-to-GDP ratio increased by 1 pp, reaching 39.2% by the end of the year primarily driven by the high fiscal deficit, partly offset by favourable stock flow adjustments, mainly due to exchange rate developments.

The 2026 budget targets a fiscal deficit of 5.7% of GDP, presenting an overall shift towards investment and growth enhancing spending supported by the Growth Plan. However, similar to recent years, execution rates by end of July 2026 point to another under-execution of public investment in 2026. In addition, the supplementary budget for 2026 tabled at the end of August provides for a higher fiscal deficit of 6% of GDP, supported by higher current spending, such as public salaries and energy support payments during December. The estimated Growth Plan related spending in 2026 accounts for 1.5% of GDP, with 0.6% of GDP allocated to capital spending and the rest dedicated to the implementation of the Reform Agenda. Revenue is projected to remain broadly unchanged as a share of GDP. Given the projected fiscal deficits and limited nominal GDP growth, public debt is expected to further increase. Public debt management remains heavily reliant on concessional external financing and short-term domestic issuance, that increased by 3 pps y-o-y to almost 96% of total domestic issuances by end of June 2026, adding to debt-servicing costs amid rising interest rates.

There has been progress with structural fiscal reforms. On the revenue side, although some tax expenditures were phased out in 2025, new ones offset most revenue gains. In 2026, additional exemptions were introduced, the zero-income tax on reinvested SME profits was extended through 2026 at an estimated cost of 0.45% of GDP, and a new freelance tax regime with a 15% flat rate entered into force. The adoption of a broader tax reform aimed at simplification, revenue mobilisation, and improving predictability for investment and compliance is set to take place in the autumn. Main measures include an increase and introduction of new excises on harmful products, the increase of VAT for imported food, agriculture, HoReCa services and gas and electricity consumption above a certain threshold. The reform also proposes to increase the tax-free allowance for personal income taxation to incentivise formal employment, higher taxation on gambling and, temporarily, on the financial sector, as well as further expansion of the zero-income tax on reinvested corporate profits. Overall, while some welcome steps have been taken to eliminate selected tax expenditures, the proposed reform falls short of a systematic reduction of tax expenditures to broaden the tax base. In addition, the estimated revenue gains are likely to be insufficient to cover the costs of the forthcoming public sector salary reform and to create fiscal space for higher public investment, thereby adding further pressure on the fiscal position. To improve tax compliance, work is ongoing to establish an automated tax non-compliance risk management system, with its implementation still pending. The public investment management reform has advanced well, with all new public investment projects above EUR 10 million now being assessed through the Single Project Pipeline and steps taken to increase public investment management capacities in the ministries. Lastly, the government has institutionalised regular spending reviews and adopted a robust implementation methodology. Building on this, the government has approved the scope and themes for upcoming spending reviews in education, general economic services and agriculture.

4 Capital investments fall under Code 391 in the National Public Budget. This is defined as expenditure aimed at

reconstruction, expansion, restoration of existing fixed assets and creation of new fixed assets. Compared to the broader concept of capital spending it does not include maintenance, repairs or increase in the value.

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Moldova's macroeconomic policy mix was broadly appropriate in 2025, sustaining stability and supporting growth, though key structural vulnerabilities persist. On the fiscal side, phasing out the electricity bill support by the end of 2025 helped mitigate the impact of higher energy prices on consumption. However, the 2025 fiscal stimulus heavily relied on current spending, limiting its growth enhancing effect, while capital expenditure remained under- executed. Monetary policy was broadly appropriate. The NBM shifted from an accommodative stance to tightening as inflation, having declined gradually in the second half of 2025, re- accelerated in response to global energy price pressures following the military escalation in the Middle East. On the external side, the widening current account deficit partly reflects a structural shift in energy supply, while highlighting the persistent vulnerability to external shocks, including climate change and lower demand from external partners.

Functioning of product markets

Business environment

Efforts to improve the business environment and attract investments have been increased, but structural challenges and the impact of Russia’s war against Ukraine continue to weigh on firms. The share of companies planning new investments in 2026 declined from 40% to around 32%, with larger firms reporting increased investment intentions and micro and small enterprises a decrease, suggesting that the latter are more affected by uncertainty. The 2025 OECD/World Bank Product Market Regulations Indicators recorded a meaningful progress over the past six years in reducing regulatory and administrative burdens, notably through simplified business registration requirements, cutting the costs of starting a business and steps to improve the communication and simplification of regulation. However, regulatory uncertainty remains a concern, as the regulatory reform agenda is not publicly disclosed, limiting firms' advance visibility of upcoming reforms, which is particularly relevant given the fast pace of EU acquis alignment. Further deregulation efforts are ongoing, including elimination of permits and procedural administrative simplification. In addition, the government continued to provide financial support to businesses to invest in the modernisation of production capacities, energy efficiency and innovation.

Investment promotion efforts continue through the expansion of the One-Stop Shop mechanism for investors and the creation of the Investment Map. However, FDI levels remain low, in part due to the impact of Russia’s war against neighbouring Ukraine. The adoption of a new Law on Investments, aimed at strengthening the investment framework, particularly for strategic investments, and further aligning it with the EU acquis, is pending, having been adopted in first reading by the Parliament in September. The first EU-Moldova Investment Conference was held in 2026 and led to a number of MoUs being signed with private investors.

The Corruption Perceptions Index’ score deteriorated slightly in 2025 for the first time since 2019, though the decline was less pronounced than the broader trend across Eastern Europe and Central Asia.

Informality remains high, although recent data suggest a slight improvement compared to 2024. According to World Economics (2025), the informal economy represents about 33.6% of GDP, a decrease by 3.5 pps. compared to 20245. Efforts to tackle informality intensified, notably a higher number of inspections, including unannounced inspections, as well as compliance campaigns and activation requirements under the Social Aid Programme to incentivise formal employment. Steps were taken to enhance the State Labour Inspectorate’s capacity. As a

5 Any estimations need to be taken with caution given the variety of methodological approaches.

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result, 76.7% of 8 000 identified informal workers were formalised in 2025, contributing to a 37% increase in salary-related tax revenues that year. In the first eight months of 2026, the number of identified and formalised cases already exceeded the previous year’s total. In June 2026, the paper-based registry for day labourers was replaced by an electronic system, strengthening the oversight of day labour arrangements further simplifying administrative procedures to incentivise formalisation.

State influence on product markets

The state continues to play a substantial role in the economy, while state ownership and competition frameworks remain to be strengthened. According to the 2025 World Bank Business Ready report and the OECD/WB Product Market Regulations Indicators, Moldova lags significantly behind newer EU Member States on competition enforcement, SOE governance, and public ownership transparency, as reflected by the persistent dominance of SOEs across competitive sectors. Despite efforts to delineate functions between the Ministry of Economic Development and Digitalisation and the Public Property Agency (PPA), the PPA continues to exert influence over policy and regulatory priorities in sectors where SOEs operate, conflating ownership and policymaking. Similar concerns exist in line ministries. Some SOEs that provide both commercial and public services lack legal separation of these activities or adequate compensation mechanisms, undermining a level playing field. Preparations for digitalising the public property register to improve transparency are ongoing, with full operationalisation still pending. The OECD Review of the Corporate Governance of SOEs is ongoing. In 2025, Moldova launched its first state aid scheme in line with EU requirements covering planned investments of about 0.6% of GDP.

Privatisation and restructuring

The SOE reform is advancing gradually, while recent developments raise concerns over SOE governance. Following the completion of the triage exercise in 2023, privatisation of five enterprises identified for immediate privatisation has been launched in June 2026. The deadline for the submission of offers for four investment profiles was extended until October due to a lack of sufficient interest. SOEs that are undergoing restructuring include the national electricity transmission system operator, SE Moldelectrica and the State Railway company. In addition, the government has prepared a draft decision on the liquidation of nine SOEs that are no longer operational. Insolvency procedures are underway to reduce contingent fiscal liabilities. However, several legal challenges risk stalling the process. SOE corporate governance reform is progressing, with four additional state-owned enterprises adopting the corporate governance code (bringing the total to 48), though the selection of independent board members continues to advance only slowly. A new law on SOE governance is being prepared with the support of international organisations, among others, strengthening the framework for the selection of independent board members.

The recently revealed irregularities in senior appointments, remuneration, and recruitment practices at the air navigation services state-owned enterprise MoldATSA have raised broader concerns regarding SOE governance. In response, the President of Moldova announced that a sector-wide audit would be conducted. In addition, the government has announced a reform of the Public Property Agency, with a stronger oversight from the Ministry of Economic Development and Digitalisation. As of September, there are plans to speed up the privatisation process of SOEs and to assess the feasibility of listing certain packages on stock exchanges.

Functioning of the financial market

Moldova's banking sector remained stable and resilient, supported by strong capital and liquidity buffers, though rising real estate lending amid growing prices warrants

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continued monitoring. The sector is dominated by mainly foreign-owned banks with assets accounting for 55% of GDP in 2025. Profitability increased as a result of higher interest income. Capital buffers remain high despite a slight decrease due to increased lending activity and liquidity levels stay well above regulatory requirements. The sector remains concentrated, with the five largest banks holding almost 90% of assets. Non-performing loans edged up again during the first six months of 2026 but remaining relatively low at 5.2%. There are potential risks related to loans under the Prima Casă PLUS programme and, warrant closer monitoring. The programme should be integrated into the general National Bank of Moldova (NBM) macroprudential framework. The IMF’s Financial Sector Assessment Programme published in February 2026 confirms that the banking system remains broadly resilient under a severe adverse scenario, supported by strong liquidity buffers across all banks and high initial capital in some institutions.

Lending to households and businesses increased strongly in 2025, supported by favourable financing conditions and broad investment promotion policies. Credit to the private sector reached 28.2% of GDP compared to 25.5% of GDP in 2024, driven mainly by consumer loans and real estate financing. The loan-to-deposit ratio rose by nearly 10 pps to 72.2% in 2025, the highest since 2020. Non-bank lending continued its upward trajectory, with non-bank assets rising to 5.9% of GDP by the end of 2025, an increase of 0.5 pps from the previous year. The concept for the National Financial Inclusion Strategy 2030 has been validated, and work is ongoing to finalise the strategy and its implementation programme. Moldova has a nascent capital market. As part of its Capital Market Development Strategy 2025–2030, Moldova established the Moldova International Stock Exchange, which was authorised to operate in August 2026.

Functioning of the labour market

Moldova's labour market continues to face structural challenges amid gradual signs of recovery. In line with the economic recovery, the labour market showed early signs of improvement in 2025, with employment growth concentrated in micro and small enterprises. Labour market participation, however, remains relatively low, standing at 60.5%6 in Q1 2026 (compared to the EU average of about 75.7% in 2025), with high inactivity reflecting informal employment and a growing share of NEETs in 2025 compared to the previous year. Unemployment in Q1 2026 stood at 10.4%, a significant increase compared to 2025, mainly reflecting, for the first time seasonally unemployed population7. Increased offer of active labour market measures helped increase placements by the National Employment Agency by 24%. To further support

6 The Labour force survey (LFS) in 2025 underwent several modifications/adjustments, also reflecting the results of

the 2024 census. The LFS was further revised in 2026 to ensure the alignment to EU standards. Hence, figures from 2026 and 2025 are not comparable to previous year figures.

7 From 2026, the revised definition of unemployment includes persons due to start a job within three months of the

reference week and seasonal workers awaiting return to seasonal employment — both previously classified as inactive until 2025.

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female employment, more childcare places were created, and a new allowance was introduced targeting youth employment. The freelancer regime, in force since January 2026, aims to address informality, although its impact still remains to be seen. In addition, there is a risk that freelance work could replace regular employment or incentivise the underreporting of income. Net migration, while slightly lower than in 2024, remains negative, particularly strong among working age population and still above pre-COVID levels.

2.3.2. The capacity to cope with competitive pressure and market forces within the Union

Education and innovation

While spending on education remains above EU average and efforts to improve education outcomes have intensified, measurable results remain limited. Amendments to the Education Code entered into force in March 2026, introducing performance-based school funding and measures to optimise local school networks. Curriculum revision is ongoing, with new qualification standards introduced in ICT, agriculture and engineering, and a new pilot scheme across 35 schools to encourage careers in science and technology. Moldova has stepped up its anti-fraud and anti-plagiarism efforts in universities. During the 2025/2026 school year, the number of dual VET learners expanded by 41% compared to the previous school year with employability rate well above that of traditional VET. A new vocational training centre was opened in the Bălți Free Economic Zone. Lastly, different formats of public-private dialogue have been strengthened to better align training with labour market needs. Despite these efforts labour shortages persist, especially among larger firms indicating more difficulties to hire particularly highly skilled workers. Recent PISA results point to a continued decline in basic skills, consistent with the broader OECD trend, whereas performance in science shows a positive trajectory.

Innovation outcomes remain limited despite ongoing efforts to increase investments into research and technology. Moldova records only 23 patents per million inhabitants compared, for example, to 55 in Romania. While patent applications have recovered from a low in 2023, they remain well below pre-pandemic levels. In terms of investment in emerging technologies, the country ranks 116th out of 127 countries measured. On the policy side, funding competitions have been launched under the National Programme on Research and Innovation and the Smart Specialisation Strategy, covering collaborative research, innovation vouchers, research infrastructure, and technology transfer. The winners of 12 public calls were announced in June 2026. Under the 2025-2030 Programme for Digital Innovation and Tech Start-ups, nine investment projects have already been approved, expected to mobilise about 1.4% of GDP.

Physical capital and quality of infrastructure

Moldova is advancing transport and digital infrastructure, although investments remain significantly below infrastructure needs. Overall capital spending increased by less than 0.1% of GDP compared to 2024, reaching 3.3% of GDP in 2025. Investments in the road infrastructure are ongoing with about 0.5% of GDP allocated to road maintenance and modernisation in 2025 from Growth Plan funds. However, the execution of road projects continues to be affected by high costs and inefficiency. Preparations remain at an early stage for a Chișinău ring road, a Ungheni-Chișinău-Odesa cross-border corridor with Ukraine, and the country's first motorway. Railway infrastructure remains underdeveloped and outdated, though electrification projects are slowly advancing. To strengthen project execution, a dedicated capital investment management unit has been established in the Ministry of Infrastructure and Regional Development, though it is not yet fully operational.

Investments into energy infrastructure remain a priority as Moldova's energy security continues to be directly affected by Russia's war against Ukraine. A Russian strike on 23

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March 2026 disrupted the main electricity import line. A separate strike on a Ukrainian hydropower station caused significant pollution of the Nistru river. At the same time, efforts to improve interconnectedness with the EU and independence are progressing. Work on two electricity interconnection lines with the EU grid continues, although the operationalisation of the Vulcănești-Chișinău line is delayed beyond its initial end of 2025 target. Renewable energy capacity grew strongly, increasing by 69% y-o-y in 2025 and accounting for 24.5% of annual electricity consumption, up from 13.9% in 2024. Investment in battery energy storage systems is also ongoing. A mechanism to support households and businesses in acquiring battery storage systems was launched in the second part of 2025.

Digitalisation is continuing to advance. Nearly 95% of households have internet access, online public services for businesses reached close to 80% of all business-related public services, and Moldova joined the EU Roam Like at Home scheme in January 2026. However, according to the European 5G Observatory, 5G coverage remains well below the EU average (25-40% versus over 90%).

Sectoral and enterprise structure

The shift from agriculture and industry toward services continued in 2025. ICT recorded the strongest increase in GDP share, reaching 7.5% of GDP and broadly matching agriculture, whose contribution has declined by more than 3 pps in the last five years. Trade and other services further expanded their contribution to growth. By contrast, manufacturing continued to lose share, despite some positive developments at the end of 2025 mainly supported by the food industry. While on a declining trajectory, agriculture remains characterised by subsistence farming, which accounted for more than two fifths of agricultural output in 2025.

SMEs contribute more than half of GDP and remain concentrated in trade, construction, and agriculture. At the same time, the sector is gradually diversifying, supported by targeted programmes implemented by ODA, including initiatives promoting the green transition and a new scheme supporting SME integration into global value chains. Around 75% of SMEs operate in the services sector, but activity remains concentrated in wholesale and retail activities, with only about one third active in higher value-added activities such as ICT, business and financial services.

Economic integration with the EU and price competitiveness

Despite deeper EU integration and a shift towards services, Moldova's trade performance remains constrained by a narrow export base. Trade with the EU intensified confirming the EU as Moldova largest trading partner, absorbing 67.8% of goods exports (up 6 pps over five years) and supplying over half of goods imports (up 10 pps) in 2025. At the same time, flows remain heavily concentrated, with Romania alone accounting for more than 40% of all goods exports to the EU.Overallservices exports amounted to almost half of total exports in 2025, rising by more than 10 pps over five years, driven mainly by ICT. Goods exports remain concentrated in low value-added activities, with agricultural products and processed food accounting for nearly 50% of the total. The share of machinery and equipment continues to fall, and textiles stabilise. The import licensing requirements on grain and seeds introduced in 2023 expired at the end of 2025, removing restrictions that had previously constrained the production and export of processed agricultural goods, particularly sunflower oil, by limiting access to lower-cost inputs sourced mainly from Ukraine. At the end of August 2026, a temporary licensing mechanism for imports of certain cereals and oilseeds was adopted. It will apply until the end of October.

External price competitiveness continued to erode. Wages and unit labour costs increased further in 2025, amid persistently low average productivity, though wages rose at a slower pace

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than in 2024. The real effective exchange rate stabilised in 2025 before slightly depreciating

during the first months of 2026 supported by a gradual currency depreciation and easing inflation during the first months of 2026. These overall developments call for greater export diversification and policies to increase productivity.

2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL

Chapter 5 - Public procurement

EU rules ensure that the public procurement of goods, services and works in any Member State is transparent and open to all EU companies on the basis of non-discrimination and equal treatment.

Institutional setup and legal alignment

The legal framework on public procurement is largely aligned with the EU acquis. The government continued the implementation of the National Programme for Development of the Public Procurement System for 2023-2027.

A new Law on public procurement was adopted in December 2025 and is planned to enter into force on January 2027, ensuring a high level of alignment with the EU acquis. The new law consolidates the fragmented regulations into a comprehensive framework, with clearer rules on procedures, mixed contracts and social procurement, expanded and structured exceptions, differentiated thresholds at both local and central level, and expanded publication and reporting obligations to enhance transparency. In June 2026, amendments to the law on procurement in the water, energy, transport and postal services sectors achieved a high level of alignment with the EU Directive on utilities procurement. In addition, in June 2026, another legislative amendment on coordination of defence and security procurement achieved partial alignment with the EU Directive.

The legislative framework on concessions and public-private partnerships still needs to be fully aligned with the EU acquis.

During the reporting period, institutional priorities focused on improving procurement planning, professionalisation and monitoring mechanisms, with limited progress on digitalising procurement processes.

From a gender equality perspective, efforts should continue to mainstream gender equality and social inclusion into public procurement, including through the adoption of a national methodological guide, capacity building for contracting authorities, gender-responsive monitoring and evaluation, and increased participation of women-led businesses and other

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underrepresented groups.

Implementation and enforcement capacity

The public procurement market accounted for 4.9% of GDP, increasing from 4.1% in 2024, with 10 013 total procedures in 2025. The most used procedure for public procurement in 2025 was the open tender procedure, with 4 553 open tenders conducted, leading to 26 818 contracts. This accounted for 74.1% of the total number of contracts awarded and 81% of their total value in 2025.

The institutional framework is in place, but the capacity to manage public procurement processes needs to be improved at both central and local levels. The implementation capacity continued to face systematic weaknesses due to weak monitoring on contract execution and limited data interoperability, which restricts transparency and risk-based oversight. Training on the new qualification system and the certification of procurement professionals began in March 2026. The monitoring capacity of the Public Procurement Agency remained limited due to the outdated electronic procurement system, MTender, as delivery, invoices, payments amendments and performance are not captured digitally or published. Moldova still needs to establish monitoring mechanisms regarding low-value procurement.

Regarding prevention of corruption in public procurement, Moldova continued reforms through measures linked to the National Integrity and Anti-corruption Programme, efforts to professionalise procurement functions and the modernisation of e-procurement systems. Transparency and monitoring tools are in place through MTender and the Public Procurement Agency, but concerns persist, notably regarding low-value procurement. In June 2026, the regulation on low-value public procurement introduced mandatory publication of participation notices in SIA RSAP for low-value procurement above MDL 400,000 for goods and services and MDL 600,000 for works, social services and other specific services

Efficient remedy system

In terms of the right to legal remedy, Moldova further aligned its legislative framework by adopting the new Law on remedies and review procedures in February 2026, establishing a specialised and distinct system for handling complaints across all types of procurement. The independent National Agency for Solving Complaints received 1 206 appeals on 864 procurement procedures (1 245 appeals in 2024), of which 89.5% were related to public procurement procedures, 7.5% were related to sectoral procurement procedures and 2.9% fell outside the agency's remit.

Chapter 18 – Statistics

European statistics are developed, produced and disseminated by EU Member States, guided by the principles and quality criteria elaborated in the Regulation on European statistics, such as professional independence, impartiality, reliability, accessibility and statistical confidentiality. Common rules are provided for the methodology, production and dissemination of statistical information, which are further specified in sectoral legislation that constitute the EU acquis on statistics.

Regarding statistical infrastructure, the implementation of the national statistical system (NSS) development strategy and programme requires adequate resources and stronger internal capacity. The staffing of the National Bureau of Statistics (NBS) stood at 79% in August 2026 and remains a constraint. Moldova expanded the use of administrative data in official statistics. In December 2025, the NBS adopted Guidelines on confidentiality and data protection, strengthening the framework for secure data use. Implementation of the Single Integrated Metadata Structure began in January 2026, and quality work continued under the ESS Quality

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Assurance Framework, although all posts in the quality division remain vacant.

On classifications and registers, full alignment with the EU acquis on coverage, methodology, timeliness, and disaggregation remains pending. The NACE Rev. 2 and CPA Ver. 2.1, need to be updated. Moldova implemented the national version of the Nomenclature of Industrial Products and Services (PRODMOLD), harmonized with the European standard PRODCOM- 2022, and the Classification of Individual Consumption According to Purpose (COICOP). The NBS, developed the national Classification of Education and Training Programmes (MoldCED 2), in line with ISCED 2011 and ISCED-F 2013.

On macroeconomic statistics, fiscal notifications for the excessive deficit procedure are not produced. In December 2025, the NBS, NBM, the Ministry of Finance and the Ministry of Economic Development and Digitalization signed a Memorandum of Understanding for the national accounts for the general government sector, government finance statistics, and excessive deficit procedure requirements. A Coordination Committee and working group on the classification of institutional units in line with ESA 2010 was created in January 2026. The timeliness of annual GDP data improved from 75 to 70 days after the reference period. The compilation of national accounts and the gross national income (GNI) based on ESA 2010 definitions and accounting rules still needs to be ensured. An updated roadmap for improving national accounts in 2026-2030 in line with ESA 2010 has been prepared, providing a more robust institutional basis for future alignment in the macroeconomic domain. The NBS does not calculate the harmonised index of consumer prices (HICP) or the house price index (HPI).

On business statistics, Moldova increased its data transmission to Eurostat. Surveys were conducted on innovation, information and communication technology, and tourism. Experimental calculations on women's entrepreneurship were disseminated. Starting from July 2026, the timeliness of the transmission of data on international trade in goods statistics to Eurostat improved to correspond to EU acquis requirements. Data on the ICT usage by enterprises was disseminated on the NBS website.

On social statistics, dissemination of the 2024 population and housing census results continued. The European health interview survey was conducted in 2025; preparations for the EU survey on income and living conditions advanced with pilot data collection in May 2026. A gender-based violence survey was completed in December 2025. The NBS updated the Labour Force Survey methodology and redesigned the questionnaires to align it with the EU acquis. Data and metadata on healthcare facilities, human resources and utilisation were prepared in SIMS format and transmitted to Eurostat. The methodology for producing Health Accounts in accordance with the SHA-2011 requirements was approved in December 2025. Demographic and international migration statistics including metadata were produced and transmitted to Eurostat. However, data availability still needs improvement. Moldova needs to strengthen the collection of sex and disability-disaggregated data and develop statistics on asylum and managed migration. The NBS publishes annual overviews of the situation of persons with disabilities.

On agricultural statistics, the last agricultural census was conducted in 2011. The roadmap for the integrated agricultural survey was approved in December 2025. The year of conducting the General Agricultural Census has not yet been determined.

On the statistical geodatabase for disseminating the results of the population and housing census, significant progress was achieved. The structure of the NBS Geoportal has been finalised, and 180 thematic maps have been prepared based on the 2024 Census data and other regional level data. The beta version of the Geoportal is currently undergoing internal testing and is expected to become operational by the end of 2026.

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Energy statistics data are produced in accordance with the relevant international classifications.

Chapter 32 - Financial control

The EU promotes the reform of national governance systems to improve managerial accountability, sound financial management of income and expenditure, and external audit of public funds. The financial control rules further protect the EU’s financial interests against fraud in the management of EU funds and the euro against counterfeiting.

Public internal financial control (PIFC)

The PIFC Development Programme 2024-2027 is making gradual progress despite some delays and drove the strengthening of the national certification scheme for internal audit. There were no relevant updates to the PIFC legal framework in place.

The compliance of first-budget users with the organisational standards set by the internal control system has increased, although full compliance should be targeted, and related monitoring and reporting procedures were strengthened. Risk management remains at an early stage, but groundwork is ongoing for its development, notably regarding risk registers and methodologies.

After the reorganisation of internal audit functions, the number of internal audit posts within ministries surged and all ministries now comply with the relevant legal requirements. However, almost half of the positions are still vacant. A pilot was launched on organising internal audit by associating the local public administration level, where capacity constraints remain substantial due to size. The mechanism for monitoring cases investigated following internal audits should also be reinforced.

Efficient implementation of managerial accountability continues to be a challenge for budget users at both central and local levels. Public bodies report to the central harmonisation unit, which consolidates annual reports and submits them to the government for approval. The role of public internal financial control in combating corruption needs strengthening, as does cooperation with the Court of Accounts.

External audit

Regarding the legal framework, the Court of Accounts (CoA) has its role enshrined in the Constitution, but not its independence. Legal amendments to the Court of Accounts Law to strengthen its financial independence were adopted in June 2026. Work continued to improve the consistency and quality of audits, and an external assessment of the CoA’s Quality Management System was finalised in October 2025. Challenges remain related to staffing and institutional capacity.

Parliamentary scrutiny occurs through the relevant committees, which organised hearings on more than half of submitted CoA audit reports. Implementation of the recommendations in CoA reports is encouraged by online publication of the data they contain. The CoA’s external engagement has improved and should be further reinforced to strengthen public trust and transparency and better follow up on CoA recommendations.

Protection of the EU’s financial interests

The legal framework remains partially aligned with the EU acquis, notably the PIF Directive. An Anti-fraud strategy has not yet been adopted. The State Financial Control Inspectorate, as the designed anti-fraud coordination service (AFCOS), was empowered to detect and report offences related to EU funds through amendments to the criminal procedure code in December 2025. It also signed bilateral agreements with 14 relevant institutions forming the National Anti-

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Fraud Network as the national AFCOS network in December 2025. Strengthening the capacity to proactively detect and investigate financial crimes and related illegal acts affecting EU’s financial interests remains essential.

Cooperation with the European Anti-Fraud Office (OLAF) takes place on a case-by-case basis and has to be backed by a solid track record. In 2025, national authorities have initiated the process allowing them to report irregularities via the Irregularity Management System (IMS) and Moldovan authorities are encouraged to finalise their preparations and start using the system in cooperation with the Commission and OLAF.

Protection of the euro against counterfeiting

Strengthening of non-criminal measures will still be needed, including on technical examination and withdrawal of counterfeits. No progress was made regarding the implementation of the 1929 Geneva Convention.

Moldova made significant progress in strengthening the protection of public, EU-related and external funds through two complementary reforms: the establishment of the National Anti- Fraud System with the State Financial Control Inspectorate as Anti-Fraud Unit/AFCOS and the adopted financial crime investigation reform. Public internal financial control and external audit should support the anti-fraud system, such as by identifying weaknesses in internal controls and procurement. Audit and control findings need to be followed by effective recovery, disciplinary action, administrative sanctions or criminal referrals as appropriate.

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION

Moldova actively participates in and contributes to various regional cooperation platforms. During the reporting period, Moldova maintained its strong engagement in several regional cooperation initiatives, including the Central European Initiative (CEI) and the Three Seas Initiative (TSI). Additionally, Moldova remained active in the Black Sea Economic Cooperation Organisation (BSEC) and the South-East European Cooperation Process (SEECP). Moldova also contributed to regional security dialogue by hosting the third edition of the Black Sea Security Conference in March 2026 under the auspices of the International Crimea Platform.

Moldova maintains good relations with neighbouring EU Member States and other candidate countries, alongside cooperation under the Eastern Partnership policy framework.

Moldova enjoys excellent cooperation and bilateral contacts with Romania at all levels, with continued high-level exchanges. The first foreign visit of Prime Minister Tofan was to Romania in July 2026, soon after taking office, underlining the continued strategic nature of the bilateral relations. Bilateral dialogue remains intensive, with a strong focus on EU integration, resilience- building, and cooperation in energy security and connectivity. This includes several strategic investment projects being implemented in these areas. Romania also remains Moldova’s leading trading partner, helping it to strengthen connectivity with the EU Single Market.

Cooperation with Ukraine remains a cornerstone of Moldova’s foreign policy, marked by regular high-level engagement, including in the context of their respective EU accession processes. Both are in regular contact on regional and security challenges stemming from Russia’s ongoing war of aggression against Ukraine. Moldova remained actively engaged in international efforts to ensure accountability for crimes committed by Russia in Ukraine, including by signing the Convention on the establishment of an International Organisation for Claims and participating in the Register of Damage, while also supporting the establishment of a Special Tribunal for the Crime of Aggression against Ukraine. Moldova joined the Coalition of the Willing in support of Ukraine. To facilitate the export of Ukraine’s agricultural goods, Moldova has provided a 50%

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discount on rail transit for Ukrainian cargo until the end of 2026. Moldova continues to host the highest number of Ukrainian refugees per capita among countries in the region.

Trilateral cooperation with Ukraine and Romania further intensified on infrastructure, energy and security. In February 2026, the three countries signed a memorandum establishing the Cyber Alliance for Regional Resilience.

The strategic partnership between Moldova and Türkiye continued to evolve in key areas of engagement such as education and economic cooperation, as well as Türkiye’s continued support for projects in the autonomous region of Gagauzia.

Moldova also continued deepening relations with Western Balkanspartners and especially appreciates learning from their pre-accession experiences. Although Moldova does not recognise Kosovo*, the country participates in the NATO-led and UN-mandated Kosovo Force (KFOR) peacekeeping force.

4. RESILIENCE, SECURITY AND DEFENCE

Moldova’s contribution to regional stability, connectivity and resilience has gained strategic relevance for the EU in the context of the evolving regional security environment. Moldova is exposed to sustained attempts by Russia and its proxies to influence democratic processes, undermine sovereignty, territorial integrity, security, public trust, societal cohesion, and exploit strategic vulnerabilities. Since taking office in July 2026, the new Government has placed continued emphasis on resilience-building, making it a cross-cutting objective, underpinning economic and energy security, crisis preparedness and resilience to hybrid threats.

Democratic resilience

Strengthening democratic resilience and countering hybrid threats have become areas in which Moldova has developed significant operational know-how and institutional capacity, including cooperation with the EU. Faced with sustained interference and pressure by Russia, Moldova has generated valuable lessons on countering hybrid threats, including foreign information manipulation and interference (FIMI), countering illicit financing, that are relevant for EU Member States and partner countries.

Recent electoral cycles in Moldova provided practical experience in protecting democratic processes against increasingly sophisticated interference tactics, including the misuse of artificial intelligence, coordinated online influence operations and the use of cryptocurrencies for covert political financing.

Support to building Moldova’s resilience has also helped refine the EU’s toolbox for countering hybrid threats through the EU’s deployment of complementary instruments and response mechanisms. This is reflected, inter alia, in the establishment in 2023 of the EU Partnership Mission in Moldova (EUPM), the first civilian CSDP mission with a dedicated mandate on hybrid threats.

Economic security and resilience

Moldova has significant potential to deepen its integration into European value chains, particularly through the relocation and nearshoring of production activities to Eastern Europe. The development of Moldova’s industrial parks and the activity of free economic zones, the

* This designation is without prejudice to positions on status and is in line with UNSCR 1244(1999) and the ICJ Opinion on the Kosovo declaration of independence.

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continued expansion of the IT sector, the modernisation of the agri-food industry, and investments supporting the green transition are concrete avenues for advancing this transformation. In this regard, Moldova currently has 13 industrial parks, 5 free economic zones, as well as the Giurgiulești International Free Port, which provide operational platforms for business expansion, investment attraction and enhanced economic cooperation. Moldova is also developing into a dynamic digital ecosystem, increasingly connected to digital value chains. Moldova’s economic security has been strengthened through cutting its dependence on Russian gas imports, the diversification of energy supplies and the reorientation of trade towards more stable European markets. Moldova is also well placed to serve as a regional hub supporting Ukraine’s reconstruction and recovery.

Defence capacity building and defence industrial dimension

Moldova is the second-largest beneficiary of bilateral support under the European Peace Facility (EPF), an off-budget instrument, with EUR 317 million committed to date, contributing to the modernisation of its defence capabilities and addresses key priorities, notably in air surveillance and air defence. EPF support covers a broad range of areas, from military medical equipment, cyber defence and tactical communications to mobility, electronic warfare and unmanned aerial reconnaissance. Since 2023, it has also increasingly supported Moldova’s air surveillance and defence capabilities, a new strategic dimension of the EU-Moldova partnership.

In the light of a deteriorating security situation in the region, Moldova is undertaking a comprehensive reform of its defence sector, including efforts to modernise its still limited defence industry, while fully respecting its constitutional neutrality. The country is interested in gradually integrating into European defence and dual-use industrial ecosystems. Although limited in scale, Moldova’s defence industry possesses certain dual-use capabilities, notably in nanotechnologies, electronics and components. Moldova is eligible to participate in common procurement projects with EU Member States under the Security Action for Europe (SAFE) instrument. Under the frameworks of the European Defence Fund (EDF) and the European Defence Industry Programme (EDIP), opportunities also exist for entities established in the EU or in associated countries, but subject to conditions and guarantees. To date, these opportunities have not yet materialised.

Civil protection and disaster resilience

Moldova continues improving its resilience in the field of civil protection and disaster preparedness. The country is an active Participating State in the Union Civil Protection Mechanism (UCPM).

5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP

CLUSTER 2: INTERNAL MARKET

This cluster covers: free movement of goods (Chapter 1); freedom of movement for workers (Chapter 2); right of establishment and freedom to provide services (Chapter 3); free movement of capital (Chapter 4); company law (Chapter 6); intellectual property law (Chapter 7); competition policy (Chapter 8); financial services (Chapter 9); and consumer and health protection (Chapter 28). This cluster is key for Moldova’s preparations for the requirements of the EU’s internal market.

Chapter 1 - Free movement of goods

The free movement of goods ensures that many products can be traded freely across the EU based on common rules and procedures. Where products are governed by national rules, the principle of the free movement of goods prevents these rules from creating unjustified barriers to

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trade.

General principles

Moldova advanced the implementation of the Action Plan to adress the recommendations from the operational assessments of the standardisation, accreditation and conformity assessment and metrology systems.

Non-harmonised area

Moldova still needs to finalise and adopt the dedicated Action Plan on compliance with Articles 34–36 TFEU. It also needs to operationalise the newly established mutual recognition and obstacles to trade monitoring while strengthening administrative capacity, coordination and reporting in the non-harmonised area. Moldova has established an information and monitoring mechanism for major obstacles to trade, aligned with EU requirements. It also established a SOLVIT Centre within the Ministry of Economic Development and Digitalisation. In addition, the system for notification of technical regulations is fully operational and coordinated centrally.

Harmonised area: quality infrastructure

The Institute for Standardisation (ISM) reached 100% adoption of European Committee for Standardisation (CEN), European Committee for Electrotechnical Standardisation (CENELEC), and European Telecommunications Standards Institute (ETSI) standards. During 2025, Moldova adopted 1 025 CEN, 420 CENELEC and 1 579 ETSI standards. ISM withdrew all ex-Soviet standards in January 2026 and in September 2025 was accepted for full CEN and CENELEC membership, which will start in 2027. ISM will also have to become a full fee-paying member of ETSI.

Moldova amended its law on accreditation and on conformity assessment in February 2026 to recognise radio, electrical and electronic equipment that has undergone EU conformity assessment, complies with EU directives, bears the CE mark, and has an EU Declaration of Conformity.

In 2025, Moldova conducted 3 263 market surveillance inspections, compared with 1 739 in 2024. Of the cases inspected, 10% were found non-compliant, down from 16% in 2024. The authorities temporarily blocked 102 products from being placed on the market, fully withdrew 3 products, and applied sanctions in 205 cases. Nevertheless, market surveillance authorities are not yet designated for all product sectors, and capacity building in this area remains necessary.

Harmonised area: sectoral legislation

In the area of the ‘new and global approach’, while Moldova has already aligned with a lot of the relevant EU acquis under the Association Agreement, there was progress on legislative alignment on EU acquis on civil explosives, fertilising products, and simple pressure vessels.

On EU ‘old approach’ product acquis, Moldova took steps to increase alignment with the EU acquis on motor vehicles and motorcycles, and on agricultural and forestry tractors. Alignment with the EU acquis on non-road mobile machinery safety has not progressed. In regard to Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) a phased alignment process is underway. In parallel, in August 2026 a comprehensive draft regulation on classification, labelling and packaging (CLP), developed with EU Twinning support, has been adopted by the Government.

On procedural measures, Moldova took steps to align with the EU acquis on the return of cultural goods unlawfully removed from the territory of an EU Member State.

As regards anti-corruption measures, the State Inspectorate for the Supervision of Non-Food Products and Consumer Protection continued inspections, product checks and laboratory

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testing of non-compliant products. However, there is still limited public information on complaints against inspectors, conflicts of interest, disciplinary measures or cases of suspected corruption related to inspections and product controls. Additionally, the level of deferral of criminal cases to courts remains low. Measures related to Customs corruption risks are reported under Chapter 29.

Chapter 2 - Freedom of movement for workers

National of one Member State have the right to work in another Member State and must be given the same working and social conditions as other workers.

Regarding access to the labour market, in March 2026, the law on the free movement and residence of citizens of the EU entered into force aiming to align with the EU acquis on the right of Union citizens to move and reside freely, on education of children of migrant workers and on the rights conferred on workers in the context of the freedom of movement of workers. The new legislation has also opened certain technical, specialised and auxiliary public administration positions to EU citizens, while civil servant posts remain restricted to Moldovan nationals. In 2025, 783 of 10 290 total residence permits were granted to EU citizens (v 303 in 2024). The largest number of foreigners who received residence permits came from Nepal, Türkiye, Bangladesh, and Uzbekistan.

Following the approval of a standard operating procedure by the General Inspectorate for Migration in March 2026, 28 applications for residence documents had been submitted, while in 2025, a total of 422 EU citizens were still to be documented under the old temporary stay-for- work regime.

On the European Network of Employment Services (EURES), Moldova has taken a series of measures to prepare for joining the network. In September 2025, it designated the National Employment Agency (NEA) as the National Coordination Office. In November 2025, the National Employment Agency (NEA) approved an order establishing the tasks and responsibilities of the National Coordination Office and the procedure for admission of organisations as EURES members and partners. Additionally, 10 EURES members were designated at territorial level and their responsibilities were clarified, thereby extending preparation into the territorial employment service network. Additional implementing acts have been adopted in the reporting period covering data collection, monitoring and evaluation of EURES activities.

Technical standards, procedures and formats were developed for matching job vacancies, applications and CVs with the EURES portal and for information exchange regarding the national EURES work programme.

On coordination of social security systems, the social security agreement with Italy entered into force in September 2025 and until September 2026 anagreement on social security was signed with Slovakia (March 2026).Negotiations of agreements with other Member States have been initiated and should continue.

In February 2026, Moldova designated the e-Governance Agency as the National Access Point for the Electronic Exchange of Social Security Information (EESSI), while the National Office of Social Insurance and the National Health Insurance Company were designated as liaison bodies within their areas of competence. A law amending several normative acts to establish the legal basis for the implementation of EU social security coordination rules and EESSI interconnection was adopted in the reporting period. An EESSI Action Plan was approved.

On the on the European Health Insurance Card (EHIC) a feasibility study on the financial impact of EHIC implementation was finalised in August 2026. In the same month, an EHIC

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Action Plan was approved detailing a roadmap for operational implementation

Chapter 3 - Right of establishment and freedom to provide services

EU natural and legal persons have the right to establish themselves in any Member State and to provide cross-border services. For certain regulated professions, there are rules on the mutual recognition of qualifications. EU rules on postal services focus on improving the quality of universal service, gradual market opening to competition, and the establishment of an independent regulator.

Regarding the right of establishment and freedom to provide services, Moldova has made progress towards alignment with the EU Services Directive, notably through carrying out a comprehensive screening of sectoral legislation to identify areas requiring further alignment and by developing a roadmap to strengthen institutional capacities. In August 2026, the national roadmap for 2026-2027 to implement the law on the freedom of establishment of service providers and the freedom to provide services was adopted to ensure the effective implementation of the EU Service Directive. Further progress is needed regarding the alignment of sectoral legislation, including through the amendment of identified normative acts and addressing remaining regulatory inconsistencies.

On postal services, Moldova is making progress to achieving the remaining alignment with the EU postal acquis, including provisions on the financing of the universal postal service and regulatory oversight of parcel delivery services. In March 2026, a Programme for the development of modern and competitive postal services for 2026-2029 was approved supported by a roadmap. Moldova should strengthen the administrative capacity of the national regulatory for postal services to enable efficient monitoring of the postal market and ensure compliance with the postal market rules.

Moldova has continued to work to align its legislation with the EU Directives on the recognition of professional qualifications and on the proportionality test. In August 2026, the law on the recognition of professional qualifications was adopted. A law amending certain normative acts and regulating the exercise of medical and pharmaceutical professions was adopted in July 2026.

Moldova advanced on the minimum training requirements for professions benefiting from automatic recognition. A Government Decision was adopted in May 2026 with regard to the profession of veterinary surgeon.

Chapter 4 - Free movement of capital

In the EU, capital and investments must be able to move without restrictions, with common rules for cross-border payments. Banks and other economic operators apply certain rules to support the fight against money laundering and terrorist financing.

On capital movements, Moldova continued work to further liberalise capital outflows. Moldova should adopt and start implementing the amended framework, establishing a calendar for liberalisation of capital movement until date of EU accession. Restrictions on the acquisition of agricultural land remain in place.

On payments, Moldova’s national legislation is largely aligned with the EU Payment Services Directive 2 (PSD2). Moldova should continue to step up its alignment efforts on the latest acquis, including the EU Payment Services Directive. Following Moldova’s inclusion in the geographical scope of the Single Euro Payments Area (SEPA), almost all Moldovan banks have been operational in the relevant schemes since October 2025, with the central bank reporting substantial savings on transaction costs.

Moldova has taken steps to continue strengthening on its anti-money laundering and

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countering the financing of terrorist (AML/CFT). The Financial Intelligence Unit (FIU) further strengthen its institutional and supervisory capacity during the reporting period. In July 2026, Moldova adopted the AML/CFT National Programme for 2026-2030 building on the findings of the 2025 National Risk Assessment. Moldova also worked on operationalising the goAML software and established an AML Training and Education Centre for certification of reporting officer. Further efforts are needed to ensure effective supervision of reporting entities and systematic use of FIU financial intelligence in corruption and financial crime investigations. Moldova should continue work on further legislative alignment with the latest EU acquis, ensure robust enforcement of the framework, including provisions on beneficial ownership, and account for AML/CT risk stemming from virtual assets, which is a high-risk area.

Chapter 6 - Company law

The EU has common rules on the formation, registration and disclosure requirements of a company, with complementary rules for accounting and financial reporting, and statutory audit.

In the area of company law and corporate governance, Moldova’s legislation is partially aligned with the EU acquis. A new information system ‘State Register of Legal Entities’ was launched by the State Services Agency in December 2025. The system enables registration of all legal forms of entities, thus strengthening the digital infrastructure for market entry and establishment procedures.

The National Commission for Financial Markets (NCFM) approved amendments to the Corporate Governance Code, which entered into force in January 2026, transposing key provisions of the EU acquis on shareholders’ rights and relevant Commission recommendations on directors’ remuneration and the role of non-executive and supervisory directors.

Further alignment with the EU acquis is still needed on cross-border operations (mergers, divisions, conversions) as well as on takeover bids, shareholder rights (SRD I), including the encouragement of long-term shareholder engagement (SRD II). Moldova should also complete alignment with the Corporate Sustainability Due Diligence Directive (CSDDD), as amended by the Omnibus I Directive. The amendments simplified some of the obligations and postponed the transposition deadline to July 2028 and the application deadline to July 2029.

On company reporting and statutory audit, Moldova’s legislation is partially aligned with the EU acquis. Moldova should step up efforts to align with the EU acquis on accounting, transparency and statutory audit. In the reporting period, Moldova adopted a Decision aimed at strengthening recruitment procedures at the Public Audit Oversight Council and in May 2026 adopted Law on Accounting and Financial Reporting with the aim of aligning with the updated size criteria for micro, small, medium-sized and large enterprises.

Moldova should continue ensuring an independent system of oversight, investigations and penalties, with the appropriate level of administrative and financial resources.

Chapter 7 - Intellectual property law

The EU has, to a large extent, harmonised rules for the legal protection and enforcement of copyright and related rights, as well as of industrial property rights, including trade marks, designs, patents and related supplementary protection certificates (SPCs), and geographical indications (GIs), including craft and industrial GIs.

The Code of Offences was amended to introduce penalisation of the use of copyright infringing devices in March 2026. The new provision aims to prevent and combat unlawful acts in the field of electronic communication networks and services. These, together, with sanctions for using commercial communication to promote illegal devices, will enter into force in March 2027.

On collective rights management, the State Agency on Intellectual Property (AGEPI)

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strengthened supervision of collective management organisations (CMO). It issued control acts in December 2025 following verifications of the collection, distribution and payment of remuneration for 2021–2022, carried out a control of five CMOs for the 2024 activity year, approved two CMOs in March 2026, and issued corrective measures to improve transparency and administrative practices.

Institutional capacity was strengthened through structural reforms and intensified international cooperation. In January 2026, AGEPI was transferred to the Ministry of Justice under a new organisational framework. The reform also created an Intellectual Property Policy Division and assigned coordination to a State Secretary. In December 2025, two new AGEPI units were established: the Legal Cooperation Division, and the Planning and Public Procurement Division.

On industrial property rights, in April 2026, the Law on topographies of semiconductor products was adopted, aligning with the EU acquis and incorporating provisions on the enforcement of intellectual property rights, marking a key step in modernising the intellectual property framework. The Law on geographical indications, traditional specialties guaranteed and optional quality terms, adopted in April 2026, integrates enforcement provisions and aligns with recent EU regulations on geographical indications.

Moldova still has to advance on reforms in industrial designs, ensuring that enforcement provisions are systematically embedded across all major intellectual property domains, on trademarks, and procedure for patent applications.

Further strengthening of cooperation and coordination between the different bodies and institutions is needed. Moldova became the 40th member state of the European Patent Organisation in June 2026. In 2025, 5 068 trademark applications were filled, 3 975 were granted protection, and 4 719 were renewed. This represents a decrease from 2024 but was not due to any shortcomings under this chapter.

Regarding enforcement, Moldova needs to further improve its track record regarding the number of court cases and the number of inspections and sanctions on industrial property rights. While several training programmes have been delivered, improving capacities of the IPR institutions’ staff, judges, and prosecutors, and reinforcing human resources is needed for IPR enforcement.

Interinstitutional coordination was strengthened in May 2026 by expanding the IPR Enforcement Observatory, by integrating additional agencies such as the National Food Safety Agency and the National Anti-Corruption Centre, and by enabling the involvement of right holders in its activities. This reflects a shift towards integrated enforcement aligned with EU best practice.

The number of counterfeit products seized by the Customs Service decreased further from 33 656 in 2024 to 29 500 in 2025, as more big importers are complying with the law. Operational enforcement has also improved. In 2025, authorities recorded 133 detention cases, involving 1 084 cargo lots, including 285 lots (29 500 units), compared to 2024, when 141 seizures, equating 1 009 units, took place. A total of 3 363 counterfeit goods were destroyed, compared to 4 918 in 2024.

Chapter 8 - Competition policy

EU rules protect free competition. They include antitrust rules against restrictive agreements between companies and abuse of a dominant position, and also include rules on concentrations between companies which would significantly impede effective competition. EU rules also set out a system of State aid control. Governments are only allowed to grant State aid if restrictive conditions are met, with a view to preventing distortion of competition.

Antitrust and mergers

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On the legislative framework, Moldova’s legislation is broadly aligned with the EU acquis on antitrust and merger control.

Secondary legislation was strengthened on antitrust and merger proceedings. The Instruction on the Rules of Access to the File entered into force in November 2025, strengthening the rights of defence and procedural transparency in antitrust and merger proceedings. The Instruction on the Definition of the Relevant Market entered into force in January 2026, aligning analytical methodologies with EU practice. The Competition Council developed new instruments for access to confidential information, informal guidance in cases of genuine legal uncertainty, and commitments in antitrust and merger proceedings, including structural and behavioural remedies.

On the institutional framework, full alignment is still needed with the EU Directive 2019/1 to ensure more effective enforcement by providing the competition authority with the necessary independence, resources, and powers to conduct investigations, make decisions, and impose fines.

The resignation of the President of the Competition Council in February 2026 raised concerns about the operational independence of the institution. The dismissal procedures for the Competition Council Board members in Moldova are not yet aligned with EU acquis.

On enforcement capacity, leniency applications and dawn raids increased significantly indicating a more active enforcement approach. At the same time, the Competition Council’s remains understaffed and its institutional capacity needs to be further strengthened to ensure it can conduct investigations and enforce the law.

On implementation, the Competition Council has organised in the reporting period, through targeted measures including specialised trainings, seminars and awareness campaigns to the relevant stakeholders. Further specialised trainings are however needed.

The procurement procedure for the electronic case management system was contracted in March 2026. The system is expected to streamline internal workflows and strengthen analytical and case-handling capacity.

The Competition Council has advanced the integration of forensic IT tools for inspections by procuring specialised software and laboratory equipment.

State aid

Regarding the legislative framework, the Law on State aid is broadly aligned with Articles 107 and 108 TFEU. The legislation on State aid is partially aligned with the EU State aid guidelines, regulations and communications.

A new Law on State Aid was adopted, establishing a fully modernised framework aligned with the EU acquis. The new framework introduces clearer procedures, fixed timelines for notification and assessment, and stronger transparency and monitoring mechanisms, including the creation and operationalisation of a central register of de minimis aid.

Secondary legislation on state aid has been strengthened through several Regulations (on postal services, non-financial undertakings) and Instructions.

Some existing state aid schemes need to be fully aligned with the EU acquis. The use of state aid to repair damage caused by natural disasters or exceptional occurrences without prior notification is not in line with EU acquis.

Regarding the institutional framework, the Competition Council ensures consistent implementation of State aid law. The Competition Council remains understaffed (out of 120 posts, 52 posts were vacant by end of 2025) and its institutional capacity needs to be further

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strengthened.

On enforcement capacity, the Competition Council adopted 15 decisions were adopted on State aid in 2025. Since the increase of the minimum threshold in January 2024, the number of notifiable measures has decreased, and scrutiny has become more qualitative. Moldova received two State aid complaints in 2025, one of which led to the opening of an investigation.

On implementation, the Competition Council has raised awareness among aid grantors by informing them of the need to notify State aid measures to the Competition Council and to comply with the standstill obligation.

Liberalisation

The existing implementing legislation on various types of State aid, including horizontal aid, sectoral aid, and specific aid instruments, needs to be further strengthened in line with EU acquis.

Chapter 9 - Financial services

EU rules aim at ensuring fair competition among financial institutions, and the stability and integrity of financial markets, namely in the field of banking, insurance, supplementary pensions, investment services and securities. They include rules on the authorisation, operation and supervision of these institutions.

On banks and financial conglomerates, amendments to the central bank regulations were adopted during the reporting period aiming to align the national legislation with parts of the EU Capital Requirements Directive and Capital Requirement Regulation. These changes concern in particular, the treatment of counterparty credit risk, the leverage ratio reporting requirements, for the calculation of own funds requirements for operational risk, the prudential treatment of credit risk, counter-cyclical capital buffers, and the assessment of members of the management bodies of banks and persons holding key positions. In addition, a Law on Prudential Supervision of Investment Firms was adopted in July 2026. Moldova should continue efforts to align with the EU acquis, including also in the areas of bank recovery and resolution and deposit insurance. The current legal framework provides for the applicability of the MREL requirement starting from 2030.

On insurance and occupational pensions, there were no major legislative developments in the reporting period. The National Commission for Financial Markets (NCFM) granted the first license to administer private pension funds, however, no occupational pension funds are yet operational. The insurance and voluntary pension markets still remain in early stages of development. During the reporting period, insurers started disclosing their Solvency and Financial Condition Reports (for 2024) and most of them carried out their first Own Risk and Solvency Assessments (ORSA).

As regards financial market infrastructure, Moldova remains partially aligned with EU acquis. In November 2025, the NBM adopted a Regulation to define the legal framework necessary for establishing connections between central securities depositories from different jurisdictions. In July 2026, a Law amending the provisions on financial collateral arrangements was adopted. Moldova should continue alignment efforts to the EU acquis on financial markets infrastructure, including the European Market Infrastructure Regulation (EMIR), taking into account recent amendments.

On securities markets and investment services, markets remain at early stages of development. Moldova undertook preparatory work on future legislation aiming to align with the

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EU acquis and adopted a Law on Markets in Financial Instruments and Investment Activities, as well as a law on payment accounts. In December 2025, the International Stock Exchange of Moldova was registered as a joint stock company, and it was licensed by the NCFM in August 2026. Moldova should continue efforts to align with the EU acquis. In this area and across the Chapter, efforts are still needed to ensure that the NBM and the NCFM have sufficient capacity to carry out their responsibilities related to investor protection, market integrity and financial stability.

On sustainable and digital finance, a national Sustainable Finance Taxonomy was adopted by the government decision in April 2026 and a Law on the crypto-asset market was adopted in August 2026. Efforts need to continue to effectively implement the framework and to further strengthen operational resilience in the financial sector.

Chapter 28 - Consumer and health protection

EU rules protect consumers’ economic interests and also ensure product safety, prevent dangerous imitations and establish liability for defective products. The EU also guarantees a high level of protection of public health and in particular also ensures high common standards for tobacco control, blood tissues, cells and organs, and human and veterinary medicinal products. The EU also has rules for upholding patients’ rights in cross-border healthcare and in preparing for and responding to serious cross-border health threats, including communicable diseases.

Consumer protection

On general principles and non-safety related issues, Moldova adopted amendments to its Law on consumer protection aimed at aligning with the EU acquis on unfair commercial practices, alternative dispute resolution (ADR), sales of goods and consumer protection cooperation. On In October 2025, new legislative provisions entered into force with the aim of strengthening the protection of consumers of financial services and increasing the accountability of service providers, expanding the legal framework for consumer protection.

In 2025, consumer protection authorities handled a total of 11 356 calls through the single Consumer call centre. Calls were related to products and services placed on the market, as well as breaches of trade regulations. The e-Democracy platform, where individual can submit petitions and monitor their status, was expanded with the integration of the e-Petitions module for the management of digital consumer complaints.

Several structural problems remain in the consumer protection area, including the limited coordination powers of the national coordination council on consumer protection and market surveillance authorities and the slow operationalisation of ADR mechanisms.

On product safety, Moldova’s remains to be fully aligned with the EU acquis. Some progress was achieved, notably with the approval in March 2026 of Moldovan standards adopting harmonised European standards for general product safety. In February 2026 Moldova introduced a unified methodology for assessing the risk level of non-food products, aligning with EU practice and strengthening market surveillance.

Public health

In the reporting period, Moldova made some progress in strengthening its health system. The implementation of the 2030 national health strategy progressed with the focus on digital transformation and improvement of the quality of healthcare services. Investments in district- level and rural healthcare infrastructure and equipment, as well as state support programme for pharmacies in rural areas continued. The decentralisation of chemotherapy to district-level hospitals progressed. A 2026-2030 national patient safety plan has been adopted. Disparities

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remain prominent and require continued sustained measures to ensure equitable access to healthcare for rural population, persons with disabilities, Roma, and elderly.

On e-Health, in the reporting period, Moldova adopted the National Programme for Digitalisation and Innovation in Health for 2025-2030. The ePrescription system for compensated medicines and medical devices was modernised, while a fully digital system for certificates was introduced.

Moldova is partially aligned with EU acquis on tobacco control. Moldova prepared a comprehensive legislative package to adopt with the EU Directive on tobacco control and amendments to the hygiene regulations on tobacco and related products, devices and accessories, and health warnings and labelling in January 2026. An electronic reporting tool was developed in June 2026 to enable economic operators to submit information on tobacco products

Moldova is partially aligned with EU acquis on patients’ rights in cross-border healthcare.

Moldova is partially aligned with EU acquis on communicable diseases and cross-border threats. Moldova adopted medical crisis response measures and procedures in the event of public health emergencies in December 2025. A 2026-2030 national tuberculosis response programme for and 2026-2030 national action plan on patient safety were also adopted.

Moldova is partially aligned with EU acquis on blood, tissues, cells and organs. In December 2025, inspection mechanism for transplantation and control measures on compliance for quality and safety standards for substances of human origin were introduced.

Moldova is partially aligned with EU acquis on medicinal products for human use and veterinary medicine products. Moldova has an advanced alignment with the EU acquis on the pharmacovigilance of medicinal products for human use. A law on good manufacturing practice rules has been adopted.

In the field of falsified medicines, Moldova should adopt the rulebook and establish in a timely manner a verification system compatible with the technical requirements of the repositories system run by the European Medicines Verification Organisation (EMVO).

Moldova increased its alignment with EU acquis on cosmetics and on medical devices. On mental health, Moldova reorganisedspecialised units for treatment through coercive medical measures and adopted the minimum quality standards for providing mental health care by public and private services. Moldova also recorded progress on cancer screenings, with the adoption of the national cancer control programme for 2026-2030, around four main pillars: prevention, early detection, diagnosis and treatment

A sector-specific Anti-Corruption Action Plan for the health sector and mandatory health insurance for 2025-2028 was adopted ensuring a comprehensive framework to enhance transparency, accountability and integrity across the system.

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH

This cluster covers: digital transformation and media (Chapter 10); taxation (Chapter 16); economic and monetary policy (Chapter 17); social policy and employment (Chapter 19); industrial policy (Chapter 20), science and research (Chapter 25); education and culture (Chapter 26); and the customs union (Chapter 29).

Chapter 10 - Digital transformation and media

The EU supports the smooth functioning of the internal market for electronic communications,

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electronic commerce and audiovisual services. The rules protect consumers and support the universal availability of modern services.

Moldova has achieved tangible progress on the key performance indicators of its National Digital Transformation Strategy 2025-2027 and continued its implementation. The first European Digital Innovation Hub was launched in April 2026. In December 2025, Moldova adopted the National Cybersecurity Programme 2026-2030.

Regarding electronic communications, Moldova joined the EU’s ‘Roam Like at Home’ area on 1 January 2026, following alignment with the EU roaming acquis. Secondary legislation was also approximated, including measures related to the European Electronic Communication Code. Moldova harmonised its normative framework with the Gigabit Infrastructure Act, through the law on access to property for public services providers, adopted in June 2026, aimed at facilitating the deployment of very high-capacity electronic communications networks and reducing the broadband rollout costs. As of March 2026, the regulatory authority, renamed ARCOM, had 105 employees out of 114 available positions. The new legal framework reinforced ARCOM’s administrative and financial independence.

On digital services, Moldova has taken initial steps to establish the institutional framework for implementing the Digital Services Act (DSA) and the Digital Markets Act (DMA). Moldova needs to take further steps to build the societal and institutional capacity and to establish the legal basis to effectively support the enforcement of the DSA and the DMA as of EU accession, in line with the considerations and requirements outlined at the 2026 TAIEX workshops.

Alignment with the EU acquis on geo-blocking and platform-to-business relations remains partial: additional legislation entered into force in 2026 It is also broadly aligned with the E- Commerce Directive. Furthermore, Moldova has continued to expand digital public services. As of June 2026, 82% of government-to-businesses services and 61% government-to-citizens services have been digitalised. In July 2026, Moldova has adopted a law partially harmonising with the EU Directive on open data and the reuse of public sector information, in line with the European Interoperability Framework.

On digital trust and cybersecurity, Moldova has an advanced level of alignment in the field of electronic identification and trust services. Through amendments to the Law on electronic identification and trust services in December 2025, Moldova has fully aligned with EU requirements for qualified trust service providers as outlined in the European Digital identity regulation and joined the EU third country trusted list for advanced electronic signatures and seals. It has also developed a national strategy to align with eIDAS 2.0., including the amendments regarding the EUDI Wallet, and joined the EU Digital Identity Cooperation Group. Another key achievement was the launch of EVO 2.0 in June 2026. Cross-border interoperability of the national digital identity wallet was tested with European partners.

The Cyber Security Agency became operational as the national Single Point of Contact and national CERT, following staff recruitment, the deployment of core hardware and software and the establishment of the Cyber Incident and Crisis Response Directorate. Moldova continued to align with the NIS 2 Directive, including through the adoption of secondary legislation on cyber incidents and on security of public 5G networks. In December 2025, the National Cybersecurity Programme 2026-2030 was approved, setting objectives for national cyber resilience, institutional strengthening, skills development and public-private cooperation. The Council renewed Moldova access to the EU Cybersecurity Reserve for an additional year in July 2026.

There was some progress on 5G deployment with population coverage estimated at 25-35% Moldova should start implementing the EU 5G Cybersecurity Toolbox measures, including by putting in place appropriate restrictions and/or exclusions for high-risk suppliers.

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On artificial intelligence (AI), Moldova should develop the necessary governance, regulatory and enforcement structures in line with the EU AI Act. Moldova signed the Council of Europe Framework Convention on AI and Human Rights, Democracy and the Rule of Law.

On semiconductors, Moldova has made some progress by adopting the Law on the protection of topographies of semiconductor products in April 2026 but is yet to align with the Chips Act.

On media, Moldova adopted a new Law on Mass Media in August 2026 aiming to harmonise its legal framework with the European Media Freedom Act and with the Venice Commission recommendations on the extension of ownership transparency to print and online media. The institutional capacity of the Audiovisual Council was strengthened through the establishment of a new department for monitoring nonlinear audiovisual media services and video-sharing platforms. Yet, the authority remains understaffed. Public sector websites and mobile applications remain insufficiently accessible for persons with physical, sensory and intellectual disabilities, and accessibility of audiovisual services is limited.

In relation to the protection of minors online, a Safer Internet Centre was established in Moldova.

Chapter 16 - Taxation

EU rules on taxation cover value added tax, excise duties and aspects of corporate taxation. They also cover cooperation between tax administrations, including the exchange of information to prevent tax evasion.

As regards indirect taxation,Moldova has made some progress in further aligning national

legislation with the EU acquis. However, structural misalignments regarding VAT refunds and

exemptions remain. Moldova applies a standard VAT rate of 20% and a reduced rate of 8%. In

January 2026, the reduced VAT rate was extended to registered medical devices, a reverse-

charge mechanism was introduced for supplies of electricity and natural gas between registered

traders, and imports of natural gas, electricity, thermal energy and cooling energy delivered

through networks became exempt with the right of deduction. Further alignment is needed,

notably on the structure and scope of exemptions, deductions, reduced rates and special

schemes, and on VAT refund procedures. Moldova also needs to advance the technical

interoperability of its systems with the VAT Information Exchange System (VIES) and with the

solutions under the VAT in the Digital Age (ViDA) package.

In the area of excise duties, the legal framework for tobacco traceability was supplemented in January 2026 by rules on data-storage contracts; work on technical standards for security features continued. Digital solutions for the Excise Movement and Control System (EMCS) and the System for the Exchange of Excise Data (SEED) remain to be developed. Further capacity- building is needed in this area. Excise duty rates on energy and tobacco products have not yet been aligned with the EU acquis.

Regarding direct taxation, Moldova still needs to align with the EU directives on taxation applicable to mergers, cross-border reorganisations and parent-subsidiary companies. Progress was made on the Anti-Tax Avoidance Directive. While a Roadmap for Base Erosion and Profit Shifting minimum standards is in place, Moldova has not yet introduced the Pillar Two global minimum tax (15%). Alignment with EU administrative cooperation rules remains partial. While the Common Reporting Standard is operational, further work is required to ensure full compatibility with the Directive on Administrative Cooperation.

Regarding administrative cooperation and mutual assistance, there have been no developments on double taxation avoidance agreements during the reporting period. Moldova has concluded four treaties on cooperation in tax enforcement and is a party to the OECD

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Convention on Mutual Administrative Assistance in Tax Matters.

In terms of operational capacity and digitalisation, the tax administration launched sector- specific compliance initiatives and monitoring campaigns, incorporating both advisory visits and targeted inspections within high-risk sectors. In October 2025, the State Tax Service approved its IT Development Programme for 2025-2027, supported by a substantial multiannual budget allocation for its implementation. As part of the IT Development Programme and the National Programme for Accession, a Roadmap and timeline for interoperability with EU information systems, covering the period 2026-2029 was approved in November 2025. A Risk-based approach is being strengthened based on the recently approved Audit Modernisation Plan and capacity building measures including trainings. It is essential to further increase the digitalisation of tax services, strengthen the risk-based approach through operationalisation of an automated compliance risk management system and increase the share of risk-based tax audits. Further capacity building is also essential, including to establish a Central Excise and TAX Liaison Office. Moldova is the most active candidate country in the Fiscalis 2021-2027 programme.

Chapter 17 - Economic and monetary policy

EU rules require the independence of central banks and prohibit them from directly financing the public sector. Member States coordinate their economic policies and are subject to fiscal, economic and financial surveillance.

On monetary policy, Moldova made substantial progress on the alignment with the EU acquis. Amendments to the National Bank of Moldova Law to strengthen the appointment and dismissal procedures of members of the decision-making bodies and improving governance, transparency and accountability and alignment with the prohibition of privileged access were adopted in April 2026. The adoption of further amendments to the central bank law ensuring alignment with the EU acquis related to central bank independence and prohibition of monetary financing is pending.

On economic policy, Moldova made progress in strengthening fiscal governance by institutionalising spending reviews and linking the implementation of their results with the budget process and by establishing a new implementation methodology. The country is partially aligned with the EU acquis on fiscal surveillance. A three-year medium-term budgetary framework (MTBF) exists. However, the 2026-2028 MTBF was not approved and the approval of the 2027- 2029 MTBF is still pending. The framework lacks an assessment of medium-term budgetary impacts of fiscal policy measures and a long-term debt sustainability assessment. The macroeconomic forecast used for budgetary planning has been improved, notably by incorporating the labour market and external sector forecasts. However, there are methodological challenges related to the consistency between the macroeconomic and fiscal forecasts. Similar to previous years, the annual budgetary calendar was not respected in 2025. The escape clause for Moldova’s own fiscal rule continues to be in place for longer than foreseen, thereby weakening its credibility and effectiveness as a fiscal anchor. Legal amendments were introduced to improve fiscal transparency in line with the IMF Fiscal Transparency Code, requiring the inclusion of extra-budgetary units such as universities, public health institutions and the state road administration in the national public budget from 2027. Preparations for setting up an independent fiscal institution are advancing, with a first assessment of its possible scope and mandate published.

Moldova is partially aligned with the requirements of the coordination and surveillance of economic policies. Its participation in pre-accession economic surveillance has contributed to developing relevant administrative capacity. The Economic Reform Programme 2026-2028 included alternative macroeconomic scenarios reflecting different pace and scope of the EU Growth Plan implementation and its impact on the macroeconomic and fiscal outlook. It also

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covered for the first time the cyclically adjusted balance, current account and labour market projections. The programme would benefit from a comprehensive assessment of the budgetary impact of reforms and fiscal measures and long-term fiscal projections, particularly costs related to demographic developments.

Moldova’s statistical framework is not yet aligned with ESA 2010 requirements. An interinstitutional working group was established to classify institutional units in line with ESA 2010. Some new ESA 2010 datasets were produced and transmitted to Eurostat.

Chapter 19 - Social policy and employment

EU rules in the social field include minimum requirements for labour law, equality and non- discrimination, health and safety at work. They also promote social inclusion, social protection, and social dialogue at EU level.

In the area of labour law, Moldova continued preparing for alignment with the relevant acquis for example on safety and health at work for temporary workers, adequate minimum wages or temporary agency work. From 1 January 2026, the minimum wage was increased by 15%.

In 2025, informal employment decreased to an estimated 12.7% from 14.8% in 2024, despite a higher output of the agricultural sector, where informality is usually the highest (2025: 61.0% vs 64.4% 2024), compared to 10.2% in non-agricultural sectors. Construction also continues to have a high level of informality 49.0% (vs 63.3% in 2024). Moldova continued to implement the National Programme for the Reduction of Undeclared Work for 2024-2027.

In the area of health and safety, alignment with the relevant acquis continued. In April 2026, the government assigned the State Labour Inspectorate responsibility for collecting and coding data on all work accidents, including those involving civilian personnel in public authorities and special-status institutions.

In 2025, the State Labour Inspectorate (SLI) intensified efforts to detect and formalise undeclared work, identifying 8 086 informal workers, more than double the 3 088 cases detected in 2024. Around 76.6% of those identified were formalised. Preliminary data for 2026 is already showing further expansion: until end of the reporting period, the SLI identified 10 430 persons performing undeclared work, securing formalisation of 67.2 percent. This progress is linked to the SLI reform of December 2025. The SLI gained the power to conduct unannounced inspection visits, with its powers and mandate aligned with relevant ILO Conventions. A monitoring mechanism for inspection visits’ recommendations was also introduced.

On social dialogue, At the end of the reporting period, Moldova adopted an Action Plan for promoting collective bargaining and increasing collective bargaining coverage for 2026-2030. There is a need to strengthen capacity of social partners at all levels.

On employment policy, the National Employment Agency (NEA) focused on training of staff, and expanded digitalisation via the development of a new integrated information system in December 2025, aiming at ensuring fully digitalised services by 2027. In 2025, 20 733 jobseekers were employed, representing a 24.2% increase compared to 2024. Also 1 217 unemployed persons benefited from active measures. The latter is currently being expanded, with special focus to groups in vulnerable situations, reaching 3739 persons by end of August 2026. Up until August 2026, through the territorial employment subdivisions of the NEA

supported the employment of 15 083 jobseekers. NEA has limited but increasing human resources and financial capacity. Regarding labour force participation and unemployment rate see the statistical annex and the section on the functioning of the labour market under 2.3 Economic criteria. Moldova’s definitions for both are not aligned with the EU’s.

On social protection and inclusion, Moldova continued its progress during the reporting

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period amid a continuing challenging economic situation.

In 2025, the poverty rate was 31.1% (urban areas 21.1%, rural areas 40%), disproportionately affecting older people, children, persons with disabilities, Roma, and those working in agriculture. To address these challenges, the government continued indexing pensions and social benefits by 6.84% in 2026 and continued income support through social aid payments and energy poverty compensations. Moldova should further strengthen its social protection system by enhancing adequacy, coverage and targeting of social benefits, focusing on children, low-income households and persons with disabilities.

Under the ‘RESTART’ reform, progress was made through capacity building, the hiring of additional child protection specialists, updates to quality standards for 34 social services, and digitalisation efforts, including the launch of second iteration of eSocial. However, challenges persist, such as suboptimal targeting, staff shortages, and unclear division of responsibilities between social assistance agencies and local authorities. Moldova committed to implementing the European Child Guarantee by setting up an interministerial working group in September 2025 and preparing its National Plan 2027 -2030.

Investments in existing social service facilities continued, with a modest expansion of social services, including community-based ones, in some regions, mainly supported by donors. Despite these efforts, coverage remains insufficient, particularly for vulnerable groups.

Moldova needs to prioritise investments in high-quality, equitable, and affordable social services, including family- and community-based services and accessible housing. It should also transfer donor-established services into the state budget and facilitate social service contracting from civil society organisations to diversify the market and improve quality and outreach. Strengthening the capacity of the State Social Inspectorate for monitoring and inspection is also necessary.

On non-discrimination and equal treatment in employment and social policy, Moldova needs to complete alignment of its legal framework with the relevant EU acquis, including the Employment Equality Directive. According to the Equality Council, discrimination in employment in 2025 was most frequently based on sex/gender (45%), followed by age (21%). As regards access to goods and services, discrimination was primarily based on disability (33%), followed by language and ethnic origin (17% each).

Participation of persons with disabilities in the labour market decreased to 14.6%, with 13.9% for men and 15.4% for women (2024: 16% for men, 18.2% for women). Persons with disabilities continue to face persistent employment barriers linked to poverty, lack of reasonable accommodation, limited access to inclusive education, infrastructure and transportation. Although subsidies for employing persons with disabilities and reasonable accommodation for workplaces exist, their uptake appears limited, reflecting broader challenges in employer engagement and labour market inclusion. Supported

employment initiatives are implemented, often in cooperation with civil society and international

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partners, and should continue to ensure more sustained and systematic impact. Public and private job portals are largely inaccessible. The newly adopted National Programme for Social Inclusion of Persons with Disabilities 2026-2030 aims to strengthen social services and support for independent living.

The National Roma Programme 2022-2025 includes a dedicated employment objective; however, its implementation remains limited.

On equality between women and men in employment and social policy, Moldova made progress by adopting legislation on gender balance on company boards The implementation of the National Programme for Promoting and Ensuring Equality between Women and Men for 2023-2027 progressed, with overall 65.9% of planned activities completed. Public and private kindergartens were expanded, also with support of development partners. However, women’s labour market participation decreased from 41.4% (2024) to 37.8%, while the gender pay gap increased from 15.6% (2024) to 16.6%. Women and girls in STEM remain significantly underrepresented. Moldova should strengthen efforts to increase women’s labour market participation.

Moldova is partially aligned with the EU acquis on the European Social Fund (ESF) andcontinues to establish the necessary institutional, administrative and financial frameworks to implement the ESF upon accession.

Chapter 20 - Enterprise and industrial policy

EU industrial policy strengthens competitiveness, facilitates structural change, and encourages a business-friendly environment that stimulates small and medium-sized enterprises.

On enterprise and industrial policy principles, the Government continued implementing the 2023–2027 entrepreneurship and competitiveness programme and the 2024–2028 industrial development programme (NIPD). Limited administrative capacity and limited funding from the national budget continue to restrain the implementation of these programmes. The NIPD would benefit from a time-bound action plan and adequate budget allocations. The regular publication of implementation reports would also strengthen the monitoring of these programmes.

Moldova took further steps to strengthen skills and competitiveness in industrial policy. In December 2025, it opened the “TechZone” Industrial Continuing Education Centre in the Bălți Free Economic Zone to provide training tailored to industry needs. To strengthen the Entrepreneurship Development Organisation (ODA) internal governance, compliance and risk management, two new units were established in January 2026. In April 2026, ODA approved a methodology for monitoring and evaluating grant programmes in line with OECD-DAC criteria. Procurement for the implementation of the ODA Integrated Information System was completed in June 2026.

In September 2025, a government decision established a unified framework for SME support to reduce fragmentation, simplify access, avoid overlaps, and strengthen monitoring and accountability. In April 2026, ODA completed the consolidation of six grant-support mechanisms into the “GROWING SMEs” instrument. In December 2025, Moldova adopted legislative packages to simplify permit procedures and improve the business environment, including a range of deregulation measures aimed at streamlining and modernising administrative processes.

On enterprise and industrial policy instruments, ODA relaunched grant calls supporting women entrepreneurs, small producers, digital innovation and tech start-ups, tourism SMEs, and local producer competitiveness, with a focus on digital and green transition, modernisation, and energy efficiency.

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In October 2025, the government amended its state aid scheme for investment in the six priority manufacturing sectors of electronics, chemical and pharmaceutical, machinery and automotive components, textile and clothing, construction materials, and food industries to align it with EU requirements and doubled its budget to MDL 4 billion (EUR 198 million). In 2025, 20 companies benefited from the scheme. By August 2026, 28 State aid agreements had been concluded for manufacturing projects, supporting approximately MDL 2.76 billion (EUR 138 million) in planned investment and the creation of 1572 jobs. A government decision amending the regional State aid scheme was adopted in August 2026 strengthening the alignment of the investment support framework with EU State aid requirements.

Moldova is associated with the Single Market Programme, is a Member of the Enterprise Europe Network, and is involved in the EU cluster initiatives like the European Cluster Collaboration Platform.

Moldova does not yet follow the EU Recommendation on the SME definition. Application improved in January 2026, when 396 enterprises were requalified from large to small and medium enterprises.

Under the Late Payment Directive, monitoring systems to assess payment performance, especially by public authorities, remain needed.

Progress under the programme on administration of state public property for 2024-2027 included raising the share of publicly owned land recorded in the Real Estate Register from 14% to 27%, appointing independent members to seven SOE boards, and launching the Public Property and State Property Administration Register. In June 2026, 11 SOEs were merged to improve governance and operational efficiency in line with EU and OECD principles.

In sectoral policies, no progress was achieved.

Chapter 25 - Science and research

The EU provides significant support for research and innovation. All EU Member States, associated countries and third countries participate in the EU’s research and innovation programmes, and can benefit from them, especially where there is a scientific excellence and solid investment in research and innovation.

Moldova continued the implementation of the National Programme on Research and Innovation 2024-2027. In December 2025, the National Agency for Research and Development institutional capacity was reinforced by establishing three new subdivisions covering project expertise and evaluation, innovation and technology transfer support, and scientific data management. These new subdivisions improve the management of research funding, support innovation, streamline administrative processes, improve the management of scientific data, and increase transparency and trust in public research institutions.

The National Programme for Smart Specialisation ‘Smart Moldova’ 2024-2027 continues its implementation. The National Fund for Innovation and Technology Transfer, launched the first initiatives to strengthen collaboration between the scientific and business sectors. Three calls followed during the reporting period, namely a call for smart specialisation related projects, an Innovation Voucher competition, and a Technology Transfer competition. In addition, a call for research infrastructure sub-projects was launched in January 2026.

The transparency ofcompetitive procedures has been improved through the establishment of a digital platform for the management of research project applications and for independent expert evaluation. Outreach and capacity building for Horizon Europe participation have been strengthened through a dedicated project as of September 2025. The Moldovan Horizon Europe Office, established in 2023 and supported since September 2025 by Horizon Europe aims to

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strengthen institutional capacity, improve proposal skills and develop international strategic research partnerships. In the reporting period the total EU net contribution for Moldova amounted to EUR 3.98 million.

Since September 2025, monthly allowances for Habilitated Doctors and for PhD holders have increased substantially. In August 2026, the Government adopted measures to support the recruitment of young specialists to vacant teaching and scientific positions in public vocational and higher education institutions. The National Action Plan for the implementation of the European Research Area Policy Agenda 2025-2027 was adopted in December 2025. This Action Plan is structured around 11 structural policies and 8 ERA actions, demonstrating a more systematic approach to ERA integration. The National Regulation on Open Science, and the Roadmap on Promoting Gender Equality in Research and Innovation for 2026-2027 was adopted in March 2026.

Public R&I investment has slightly increased to MDL 802.1 million (approx. EUR 40 million) in 2026 but remains low. Budget allocations to Public Research Performing Organisations reached MDL 558 million (approx. EUR 28 million) in 2026, up from MDL 511 million (approx. EUR 26 million) in 2025. Despite this improvement the gross domestic expenditure in R&D remains low, at 0.23% of GDP in 2025, which is below the EU-27 average and the EU target of 3% of GDP.

Moldova continues to be classified among the Emerging Innovators in the 2026 European Innovation Scoreboard, with an innovation performance of 18.6% of the EU average. The innovation gap with the EU is increasing. Relative weaknesses are venture capital expenditures, cloud computing and SMEs introducing product innovations.

Researchers from Moldova participated in 59.3% of actions of the European Cooperation in Science and Technology (COST). Moldova is associated to the Research and Innovation Framework Programme Horizon Europe. In the reporting period, 17 grants with Moldovan participation were signed with a total EU net contribution for Moldova of EUR 3.98 million.

Chapter 26 - Education and culture

The EU supports cooperation in education and culture by funding programmes and the coordination of Member State policy through the open method of coordination. The EU and its Member States must also prevent discrimination and ensure quality education for children of migrant workers, including those from disadvantaged backgrounds.

Moldova’s education and training system continued the reform process focusing on quality, efficiency and inclusion. In August 2026, the government adopted the 2026-2030 implementation programme of the Education 2030 Strategy, setting out measures across all levels of education. The amendments to the Education Code adopted in February 2026 mark the most significant legislative development in the education sector in several years with the introduction of financial autonomy for schools with more than 400 students as of January 2027, the establishment of academic integrity in higher education, and the provision of the legal basis for school network consolidation. A comprehensive reform of education governance was launched in July 2026, followed by the adoption on 3 September 2026 of a law amending the Education Code as part of the ‘Restart in education’ reform, which aims to replace the existing district and municipal education authorities with Territorial Education Agencies subordinated to the Ministry of Education and Research. Public expenditure on education as percentage of GDP was 6.04% in 2025, above the EU average of 4.7% of GDP (2023).

In general education,the Model Schools initiative moved from pilot to a structural programme targeting 90 schools by 2030 from the initial 35 envisaged. During the reporting period, 200 kindergartens and 200 general education institutions received equipment upgrades. STEAM (Science, Technology, Engineering, Arts and Maths) labs, libraries, sport facilities, sanitary

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blocks and new teaching and learning resources were launched in several Model Schools. New school buses and GPS tracking systems improve rural connectivity and network consolidation. The introduction of a new normative cost-per-child methodology standardises and makes transparent the funding of all kindergartens and schools from 2026 onward. A record 426 young teachers were recruited into schools and kindergartens in 2025-2026, the highest level in recent years (up from 404 in 2024 and 365 in 2023), reducing the number of vacant teaching positions in the system. The attractiveness of the teaching profession was supported by a one-off allowance of MDL 200 000 (EUR 10 000), reduced workload for five years, housing support and mentoring. Digital transformation continued with 60% of schools using electronic gradebooks, over 4 100 teachers trained in digital competences using the DigCompEdu framework and national digital competence testing conducted for 3 021 students.

The curriculum reform, ongoing since 2024, reached an advanced stage: 31 working groups finalised concepts for all school subjects in February 2026. According to the results of the Programme for International Student Assessment (PISA) 2025, 54% of students attained at least basic proficiency (Level 2 or higher) in science, 44% in mathematics and 48% in reading. While results remain below the OECD average, they have improved when compared to PISA 2022. On multilingual education, 39 pilot schools were designated to implement multilingual education models (Romanian alongside Gagauz, Bulgarian, or Ukrainian). Moldova approved the second National Programme for Learning Romanian, applying a competency-based Common European Framework of Reference for Languages (CEFR)-aligned approach. For the first time, a Romanian language certification exam was held in February–May 2026. School textbook procurement procedures were revised to strengthen quality.

As part of the National Programme for the Development of Inclusive Education 2024-2027, the participation of learners with special educational needs in mainstream education increased by 18% in 2025 compared to 2024. 931 Resource Centres for Inclusive Education are now operational, staffed by 1 492 support teachers, and an integrated management information system on students with special educational needs was established in March 2026. However, reasonable accommodation for learners with special educational needs in schools and universities are provided to a limited extent. Support services are expanding but remain insufficient and require further strengthening. Despite progress, school buildings, facilities and digital platforms remain largely inaccessible. Roma children enrolment and rural-urban disparities remain challenging. Informal fees collection from students’ families to fill financial gaps for basic needs at school level remains a widespread practice. Gender-sensitive approaches are increasingly mainstreamed in the policies of the education system, including in the Implementation Programme of the Education Strategy 2030. Although violence, harassment and bullying remain issues of concern, institutional mechanisms to prevent and combat sexual harassment in higher education institutions are being piloted.

In vocational education and training (VET) enrolment increased by 5.1% over 2024-2025 along with the expansion of dual VET, mostly in manufacturing, technical engineering, ICT, HoReCa and other service sectors. A new State aid scheme has been established to incentivise companies participating in dual VET, compensating 50% of the eligible training costs. New qualification standards were approved at NQF (National Qualification Framework) Levels 3 and 4 in automotive, agriculture, logistics, ICT, and legal sectors, and green occupation standards were developed in the renewable energy sector. Moldova has increased its engagement in the European Alliance for Apprenticeships (EafA).

Higher education enrolment increased by 6.8% over 2024-2025, driven in part by the ‘Study in Moldova’ campaign. Bachelor admissions rose 11% and master’s admissions by 13%. The independence and operational capacity of the National Agency for Quality Assurance in Education and Research was strengthened.

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In March 2026, Moldova formally presented its NQF referencing report to the European Qualifications Framework (EQF) Advisory Group, establishing the comparability of Moldovan qualifications at European level and enhancing graduate mobility. Further efforts remain necessary to fully implement key Bologna Process commitments, notably on automatic recognition and external quality assurance.

Legislative steps to enhance academic integrity have been undertaken, with a law requiring all higher education institutions to adopt codes of ethics, implement plagiarism detection, establish independent ethics committees and report annually to the Ministry of Education and Research. During the reporting period, approximately 27 000 undergraduate students attended the mandatory ‘Academic Ethics and Integrity’ training course. Moldova benefits from the international dimension of the 2021-2027 Erasmus+ Programme. Preparations started for establishing a dedicated Erasmus+ national agency, with a view to participation in the next programme period.

In the youth sector, the implementation of the National Youth Strategy 2030 continued, including through the Youth Centre Development Programme 2030 and government grant programmes for youth organisations and local youth initiatives. A revised regulatory framework for the Youth Capital programme was adopted in April 2026. The law on volunteering, adopted in December 2025, provides a structural framework for formalising and recognising volunteer activity, benefiting youth civic participation. A new regulation on student self-governance repositions student representatives as active co-creators of university policy.

The sport regulatory framework was substantially reformed following the adoption of a law on Physical Education and Sport and multiple implementing regulations covering sports schools, monthly scholarships for high-performance athletes, financial norms for sports activities, sports federations, and sports clubs. The government also adopted the 2026-2028 implementation programme of the Sport 2030 Strategy, providing a framework for implementation of the national sport policy. Moldova continued taking part in the European Week of Sport.

On culture, Moldova adopted the National Strategy for Culture and Heritage 2025-2035 and its 2026-2030 implementation programme, positioning culture as a central pillar of national development. Moldova joined the Creative Europe programme on 1 January 2026 and designated the National Office for Cultural Development as Creative Europe Desk.

Chapter 29 - Customs union

All Member States are part of the EU customs union and follow the same customs rules and procedures. This requires legislative alignment as well as adequate implementing and enforcement capacity and access to and interoperability with the EU electronic customs environment.

The operational rollout of the New Computerised Transit System (NCTS) Phase 6 was completed in September 2025. This facilitated the country’s full accession to the Common Transit Convention (CTC) and the Convention on the Simplification of Formalities in Trade in Goods in November 2025, significantly enhancing the interoperability of Moldova’s customs operations.

Moldova continues to implement its modernised customs legislation broadly aligned with the EU acquis, including regular updates of its tariff nomenclature and an Authorised Economic Operator programme with 155 authorisations, of which 55, covering security and safety aspects, enjoy mutual recognition with EU Member States. Substantial progress has been made in aligning with the Union Customs Code. Implementation remains incomplete due to transitional provisions provided by the current Moldovan Customs Code and a lack of IT tools. These should be addressed in the draft Law amending the Moldovan Customs Code which will provide

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the legal basis for the full automation of all customs procedures.

A Strategic Risk Management Programme for 2026–2030 was approved. Risk management was applied systematically, with the share of individual consignments subjected by the Customs Service to physical or documentary control standing at 20.2% for imports, and 3.3% for exports in August 2026.

Regarding administrative and operational capacity, there is a need to strengthen the institutional framework of the Customs Service, elevate integrity standards and minimise corruption risks. This requires greater automation, optimisation of internal customs clearance processes, and broader access for traders to simplified digital procedures. To this end, the Customs Service initiated an institutional reorganisation process, aimed at centralising selected functions, including risk analysis, post-clearance control and audit, to improve efficiency and advance acquis implementation. The proposed new structure was submitted to the Ministry of Finance in June 2026.

In October 2025, the Government approved the National Programme and Action Plan for the Harmonisation of Customs Information Systems for 2025-2030, which prioritises interconnectivity and interoperability with EU customs systems. Of the 25 information systems envisaged under the National Programme, three are currently operational: NCTS Phase 6 which was connected to the common transit network in November 2025, the national Customs Decisions System (CDS), aligned with the EU Customs Data Model and EU specifications and data requirements, and the Binding Tariff Information system, launched in September 2026.

In March 2026, a new Customs Service Anti-Corruption Policy and Action Plan for 2026-2029 was adopted, providing a practical framework to prevent and combat corruption. It sets out time- bound, result-oriented measures with clear responsibilities and monitoring mechanisms to strengthen institutional integrity. The plan promotes zero tolerance through increased digitalisation, reduced human intervention, improved reporting, and enhanced whistleblower protection, in line with European standards. Moldova has taken important anti-corruption steps, but implementation across the most corruption-prone customs functions remains a challenge.

Moldova continued to cooperate with the EU Member States under the EU-Moldova Association Agreement Protocol III on mutual administrative assistance in customs matters, and with the European Anti-Fraud Office (OLAF) to investigate suspected cross-border customs offences and other illegal activities. Methodological rules on the use of the Anti-Fraud Information System were approved in September 2026.

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY

The cluster on Green Agenda and sustainable connectivity covers: transport policy (Chapter 14); energy (Chapter 15); trans-European networks (Chapter 21); and environment and climate change (Chapter 27).

Chapter 14 - Transport policy

The EU has common rules on technical and safety standards, security, social standards, State aid and market liberalisation in road transport, railways, inland waterways, multimodal transport, aviation and maritime transport.

On general transport, the country continued to align with the EU acquis. In the maritime sector, Moldovan flag vessels are no longer on the blacklist of the Paris Memorandum of Understanding on Port State Control. However, it exhibited insufficient capacity to effectively

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implement the approved reforms. The intelligent transport systems (ITS) strategy for all modes of transport was developed and needs to be adopted and implemented. As an observer, Moldova continued to actively participate in the work of the Transport Community Treaty. The Sustainable Urban Mobility Plan for Chișinău was approved by the Municipal Council.

On road transport, some progress was achieved. Legislation on market access, profession of road transport operators, digital tachographs and access to the haulage market remain partially aligned with the EU acquis. Following the adoption of the Road Safety Programme, the reorganisation of the Transport Accident and Incident Investigation Bureau was approved, granting it new competences to develop normative acts and monitor

compliance with national and international obligations regarding transport accident and incident investigations. Further actions are needed to align with provisions related to guidelines for road safety audits and inspections of infrastructure and vehicles, and to enhance the road safety crash data system. The State Register of Traffic Accidents has been modernised and complemented by a mobile application for real-time reporting by police officers. The development of the accident data management is being implemented in line with the Common Accident Data Set (CADaS) methodology.

On vehicle equipment, tyre tread depth for certain categories of vehicles is now specified in the Road traffic regulations. The Directive on speed limitation devices remains partially transposed and implemented. Additionally, as of June 2026, all relevant vehicles are required to have speed limitation devices.

On the transport of dangerous goods, some progress was achieved. Moldova has aligned with the Directive on the transport of dangerous goods by road. The new framework simplifies the authorisation of transport of dangerous goods, defines institutional responsibilities for monitoring compliance and strengthens cooperation between national and EU authorities through information exchange and harmonised inspection procedures.

A review of the national road transport framework was carried out with support from the Transport Community Secretariat. The measures under the new law aim at ensuring full compliance with EU social and market rules for road transport.

On rail transport, steps were taken to unbundle the railway state enterprise by adopting the general conditions of the multiannual contract for the management of railway infrastructure. On unbundling, Moldova has initiated its separation in two distinct joint-stock companies responsible for infrastructure and passenger and cargo. Work is ongoing to further align the Railway code with the EU acquis. Notably, the changes are expected to facilitate passenger rail operators’ access to the services market.

Steps were taken towards establishing regulations governing interoperability. Moldova should further pursue alignment with the fourth railway package, including adoption of the technical specifications for interoperability and the common safety methods. The national railway safety method has been formalised, ensuring full compliance with the EU railway safety decision, and a new legal basis for a national vehicle register has been introduced to support interoperability. 

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On maritime transport, Moldovan flag vessels are no longer on the backlist of the Paris Memorandum of Understanding on Port State Control. Moldova still needs to fully align with the Port Services Regulation. Regarding trade facilitation, Moldova has partially aligned its legal framework with the Regulation on a European Maritime Single Window environment.

On inland waterways, Moldova still needs to further align with the relevant acquis.

On aviation, the country is mostly aligned with the EU acquis, having implemented more than half of the legal acts listed under the EU-Moldova Common Aviation Area Agreement in its legislation. Moldova has a good level of alignment with the EU aviation rules in several key areas, including market access, safety, security, environment, social aspects, and consumer protection. However, the alignment with air navigation services rules as well as airport legislation such as airport charges and ground handling is only partial. Regarding the protection of air passenger rights, the aviation regulatory framework is partially aligned with relevant EU regulations.

On intermodal transport, there are not yet any legal and technical provisions in Moldova.

As regards passenger rights, Moldova needs to align with the EU passenger rights acquis for all modes of transport and make further progress to align with outstanding provisions, especially concerning bus, coach and waterborne passenger rights.

From the perspective of the rights of persons with disabilities, passengers with disabilities in Moldova are legally protected and entitled to assistance for railway, air and road transportation. However, while air transport at Chisinau airport is largely adapted for passengers and visitors with disabilities, full and consistent implementation across all transport sectors remains a challenge, and accessibility in practice remains largely limited.

Transport remains vulnerable to corruption risks linked to procurement, infrastructure contracts, licensing, permits and inspections. Moldova strengthened integrity controls through NAC- monitored integrity plans for the National Road Transport Agency (ANTA), road sector enterprises and the Civil Aviation Authority, with implementation rates reaching 79-94% in several entities. The measures targeted risks in procurement, contract supervision, infrastructure maintenance, certification and asset management. The main challenge remains demonstrating concrete enforcement results, including sanctions, and effective follow-up to procurement irregularities and suspected corruption cases.

Chapter 15 - Energy

EU energy policy covers energy supply, infrastructure, the internal energy market, consumers, renewable energy, energy efficiency, nuclear energy, nuclear safety, radiation protection and nuclear safeguards.

On security of supply, the Law on the security of supply of petroleum products was adopted in

June 2026, aligning with the EU acquis. A Central Stockholding Entity was established setting

out the stock calculation methodology and reporting requirements and monitoring the gradual

build-up of oil stocks. The main challenge remains the implementation of the security system in

line with the EU framework. In the gas sector, Moldova set a target for security stocks for 2026

equal to 56.3 mcm. The National Agency for Energy Regulation (ANRE) set the obligation for

2026 for all active suppliers at 15% of the annual gas consumption, to be met by 1 November

2026. Amendments to the gas law were adopted to increase the mandatory gas stocks for the

Transnistrian region, equal to 15% of annual consumption.

Regarding internal energy markets, the legislative package aligning with the Electricity

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Integration Package (EIP) was adopted and is being assessed by the European Commission, with full compliance required for market coupling with the EU. ANRE also continued updating the energy regulatory framework. Key measures include the electricity tariff setting with new time-of-use pricing and the integration of flexible connections and capacity auctions into the grid connection regime. The balancing regulatory framework was updated to introduce new rules on imbalance pricing, balancing service providers, and balance responsible parties, aimed at alignment with the applicable EU terms, conditions and methodologies (TCMs).

The transmission system operator Moldelectrica launched the electricity balancing market in September 2025, with the first transaction registered in December 2025. Its operational scope expanded in June 2026, when balancing services from storage installations were activated for the first time. A tender for new balancing capacities was finalised in May 2026. The tender documentation imposed a binding obligation on the successful tenderers to commission the new balancing capacities and place them into commercial operation by the end of June 2028. In parallel, the short-term organised electricity markets became operational under OPEM, with day-ahead market and intra-day markets launched in December 2025, introducing competitive and transparent platforms for electricity trading, laying a solid foundation for deeper regional market integration. In the gas sector, Moldova opened its market for large non-household consumers in April 2026, preparing for future integration with the EU internal energy market.

On renewable energy, Moldova adopted rules for verifying biofuels, bioliquids, and biomass fuels, as well as the recognition of voluntary schemes and the amendment of certain regulatory acts, representing the final step towards the transposition of Renewable Energy Directive (RED II). In addition, Moldova is already making progress towards harmonisation with the provisions of the Renewable Energy Directive (REDIII). A second tender for large investments in renewables for wind farms with associated battery energy storage systems was launched in December 2025, with the preliminary list of winning bids validated in July and average price of 62.04 EUR/MWh. Overall, by the end of June 2026, the total installed capacity of renewables had reached 1 074 MW (combining solar, wind, biogas and hydro), marking a major acceleration in renewable deployment, contributing to the goals of security of supply and decarbonisation. To support expansion of storage capacities, the government introduced mechanisms to boost investments. System flexibility also gradually improved.

On energy efficiency, Moldova has further strengthened the regulatory framework. Substantial progress was made in operationalising the National Centre for Sustainable Energy (NCSE), with a focus on the management of energy efficiency projects in residential buildings in an open and transparent manner under donor oversight. The regulation on financial guarantees and provisioning financial compensation by the NCSE was adopted in July 2026, supporting the financing of energy efficiency and renewable energy projects by homeowners’ associations in condominiums. The implementation of three financing initiatives targeting residential energy efficiency, rural household upgrades, and the Green House initiative continued. Another important support mechanisms managed by NCSE, the Home Appliances Vouchers Programme, supports vulnerable households in replacing old and used appliances with new and energy efficient equipment.

On governance, the National Energy and Climate Plan (NECP) is currently under implementation. Its monitoring is ensured by the Ministry of Energy and the Ministry of Environment through a dedicated working group set up in March 2026.

On nuclear energy, nuclear safety and radiation protection, Moldova is only partially aligned and still needs to align with and implement the Euratom Directives on nuclear safety, management of radioactive waste, basic safety standards (radiation protection) and drinking water. Moldova is not yet a member of European Community Urgent Radiological Information

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Exchange (ECURIE) and the European Radiological Data Exchange Platform (EURDEP) systems and should take steps to join them. On nuclear safeguards, upon EU accession, the existing systems of accountancy and control of nuclear materials in Moldova would need to be adapted to accommodate for the safeguards provisions of the Euratom Treaty.

Moldova has introduced transparency-relevant measures in the energy sector, including renewable energy auctions, energy efficiency financing mechanisms, digital management of energy efficiency projects and donor-supported investment programmes. The effectiveness of these reforms depends on transparent award criteria, beneficial ownership checks, conflict-of- interest safeguards and traceability of procurement procedures, grants and payments. The main remaining challenges concern SOE governance, strategic infrastructure contracts, tariff-setting decisions, renewable energy support schemes and effective follow-up to procurement irregularities, audit findings and suspected corruption cases.

Chapter 21 - Trans-European networks

The EU promotes trans-European networks (TENs) in the areas of transport, telecommunications and energy to strengthen the internal market and contribute to growth and employment.

On transport networks, the current strategic framework for transport infrastructure is outlined in the 2030 National Strategy for Development. Moldova has approved the TEN-T regulation at national level. A feasibility study is ongoing to further assess the identified road axis of the Chișinău ring road. The three road TEN-T border infrastructure projects with Romania remain delayed, mainly due to administrative procedures and adjustment of project scope with introduction of coordinated bidirectional controls on the Romanian territory. Key road projects, such as M3 from Giurgiulesti port to Chisinau, have identified funding and await final decision before being launched. The Road Fund remains the primary source of national budget funding for public road maintenance albeit funds remain insufficient.

Regarding rail, rehabilitation works for the north-south railway corridor continue to be delayed. In terms of European standard gauge deployment in Moldova, the feasibility and design study for the deployment of the European standard gauge connecting Chișinău and Ungheni has been awarded through the Facility for Eastern Partnership Investment in Connectivity (EPIC). Moreover, Moldova received support from the Connecting Europe Facility (CEF) for upgrading the rail connection and electrification between Ungheni (Moldova) and Ungheni (Romania), combined with the electrification planned in Romania until Iași. Rehabilitation works on the Basarabeasca-Giurgiulești railway segment are ongoing but delayed with respect to the initial planning.

In April 2026, the ownership of Giurgiulesti International freeport was transferred from EBRD to Romania’s Port of Constanta.

On energy networks, Moldova is partially aligned with the TEN-E Regulation. It adopted

legislation in July 2026 partially transposing version of the TEN-E Regulation as adapted and

adopted by the Energy Community.

Moldova needs to develop its regional electricity connections in line with the Central and South-

Eastern Europe Energy Connectivity (CESEC) action plan. Infrastructure projects should be

accelerated to reduce Moldova’s structural vulnerability and improve its connectivity with

neighbouring countries. The operationalisation of the Vulcanesti–Chisinau 400 kV Energy

Independence Line has been constantly delayed, with final testing ongoing. For the Balti–

Suceava 400 kV Power Line, the construction contract was signed in June 2026, with work

progressing on the Balti substation and the modernisation of 120 other substations. Preparatory

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work on the Straseni–Gutinas 400 kV Power Line is also advancing, with the feasibility study

completed in June 2026. The Secondary Circuit of the 330 kV Balti–Dnestrovsk HPP

Interconnection Line with Ukraine has been pre-qualified for the second PECI list, with

reconfirmation expected in December 2026, while discussions on financing are ongoing.

Chapter 27 - Environment and climate change

The EU promotes strong climate action, sustainable development and protection of the environment. EU rules contain provisions addressing climate change, water and air quality, waste management, nature protection, industrial pollution, chemicals, noise and civil protection.

Environment

Moldova strengthened administrative capacity by hiring additional staff for the Environmental Inspectorate and the Environmental Agency. Moldova officially joined the European Environment Agency (EEA) and the Eionet network as a cooperating country in March 2026.

On horizontal legislation, Moldova continues its alignment with related EU acquis. In April 2026, the Law on environmental liability as well as amendments to the Law on environmental impact assessment and the Law on strategic environment assessment were adopted.

Alignment of air quality standards to the EU acquis is progressing. During the reporting period, a concept for modernising the air quality monitoring system and network was developed and an air quality plan has been initiated for Chișinău. Moldova has updated the strategy for air quality monitoring and management. Moldova should further increase administrative capacity, legislation alignment and financial planning in the air quality plans.

On waste management, some progress was made with adoption of technical regulation on soil protection measures in agricultural practices and efforts to align legislation with the Nitrates Directive. Implementation of the regional solid waste management system is ongoing in parts of Moldova and planned across the country. The alignment of product-specific waste streams legislation continued. Further efforts are needed to ensure the full alignment, including strengthening implementation capacities, advancing producer responsibility schemes, enhancing reporting and further developing waste treatment and recycling infrastructure.

On circular economy, policies still need improvement.

On water quality, Moldova has undertaken preparatory work related to the further alignment with the EU water acquis. Amendments adopted in April 2026 completed alignment with the Water Framework Directive as regards to reporting obligations and strengthened alignment with the Environmental Quality Standards Directive, the Groundwater Directive and the Water Reuse Regulation. Further efforts are needed to ensure effective implementation, and engagement with agricultural stakeholders. In terms of implementing the Water Framework Directive, Moldova has improved the consistency of inter-sectoral policies, annual monitoring programmes and strengthened interinstitutional coordination through platforms. Measures for reducing urban and industrial pollution are top priorities under the River Basin Management Plans that have been adopted within the implementation of the Water Framework Directive.

On nature protection, Moldova needs to make further progress. The Law on Zoos has been adopted. Moldova is aligned with the Leghold Traps acquis. On biodiversity, continued efforts are required to advance legislative alignment with the Regulation on Nature Restoration and the Birds and Habitats Directives, including the identification and designation of protected areas, and to strengthen administrative structures for nature conservation. A roadmap for the transition of Emerald sites to the NATURA2000 network was launched in April 2026. The reform of Moldsilva (the public agency for forestry and hunting) and the establishment of an independent agency for protected areas is ongoing and remains a priority.

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On industrial pollution control and risk management, the update of the existing pollutant release and transfer register platform remains to be completed. This includes ensuring full compliance with EU standards of pollutions and greenhouse gas emissions (GHG) data collection, monitoring and reporting requirements. In December 2025, the government adopted the regulation on the organisation and provision of public services for issuing integrated environmental authorisation and environmental authorisation. A series of ministerial orders approved Best Available Techniques conclusions in several sectors. Moldova still lacks a sufficient enforcement mechanism and implementation capacity on reporting obligations by economic actors and strengthen the private sector’s capacity to comply with reporting requirements.

On environmental noise, Moldova has progressed and the Government approved the Regulation on the assessment and management of environmental noise, fully transposing the directive relating to the assessment and management of environmental noise.

On chemicals, the restriction of hazardous substances in electrical and electronic equipment was adopted in October 2025. The government adopted a regulatory measure in August 2026, aligning with REACH, including the list of restricted and prohibited chemical substances and mixtures. In addition, the government approved in August 2026 the Regulation on classification, labelling and packaging of substances and mixtures aligning with the CLP regulation. Furthermore, the reorganisation of the Environmental Agency has established a dedicated Chemicals Directorate. Moldova further deepened its cooperation with European Chemicals Agency (ECHA).

On civil protection, Moldova is an active Participating State in the Union Civil Protection Mechanism (UCPM). In September 2025, Moldova established the National Crisis Management Centre (NCMC) as a central authority coordinating nationwide crisis response from prevention to recovery. A new Law on crisis management also created an integrated framework for prevention, preparedness, response and recovery. Moldova is required to clarify the roles of ministries, emergency services and other bodies vis-à-vis the coordination with the UCPM. Further work is needed to strengthen the legislative and operational framework for prevention, preparedness, Host Nation Support, coordination and cross-border cooperation under the UCPM.

Climate change

Moldova made good progress on climate change. It advanced preparatory work on a long-term low-emission development strategy. In December 2025, Moldova validated the concept underlying the Long-term Strategy for Greenhouse Gas Emission Reduction – “Climate Neutral Moldova 2050”, which aims to achieve climate-neutrality by 2050. Moldova issued a new Nationally Determined Contribution under the Paris Agreement, which commits to an unconditional 71% reduction in greenhouse gas emissions by 2030 and 75% by 2035 (compared to 1990 levels)

On carbon pricing, Moldova has significantly advanced alignment with the EU system for the monitoring, reporting, verification and accreditation (MRVA) of greenhouse gas emissions (GHG) at installation level. The regulatory framework establishing the MRVA is in place. Moldova still needs to achieve full alignment with the EU MRVA system, notably in terms of sectoral scope. A carbon pricing mechanism is not in place yet and should remain a priority to prepare for entering the EU ETS.

In March 2026, the Ministry of Energy and the Ministry of the Environment established a dedicated working group, tasked with monitoring progress in implementing the National Energy and Climate Plan, which created the basis for a structured monitoring of delivery.

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Moldova further needs to align with EU standards on light and heavy-duty vehicles emission and the Carbon Capture and Storage Directive.

Mainstreaming of climate across all policies is still limited. The Climate Law established a National Commission on Climate Change (NCCC). The work on its full operationalisation is ongoing and includes: the development of detailed regulations that define the structure, mandate, and functions of the NCCC, setting up a permanent Secretariat within the Ministry of the Environment for the NCCC, provision of training for the secretariat and NCCC members and, developing and disseminating an operational manual and guidebook on the NCCC.

Moldova needs to significantly reinforce administrative capacity to make progress in aligning with the EU climate acquis and to effectively address climate mitigation and adaptation. The institutional reforms, including the establishment of a Climate Change Directorate within the Environmental Agency, are critical steps in this regard.

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION

This cluster covers: agriculture and rural development (Chapter 11); food safety, veterinary and phytosanitary policy (Chapter 12); fisheries and aquaculture (Chapter 13); regional policy and coordination of structural instruments (Chapter 22); and financial and budgetary provisions (Chapter 33).

Chapter 11 - Agriculture and rural development

The EU’s common agricultural policy supports farmers and contributes to ensuring Europe’s food security. It helps tackle climate change and the sustainable management of natural resources; preserves rural areas and landscapes; and supports the rural economy by promoting jobs in farming, agri-food industries and related sectors. This requires robust management and control systems. There are also common EU rules for marketing standards, quality policy and organic farming.

On horizontal issues, the law on financing, management and monitoring of agricultural policy entered into force, regulating the system of financial support to agriculture and rural development, including the role of the agriculture paying agency. The Strategic Programme of Agricultural Policy 2026-2030 (SPAP), guiding its implementation and establishing the interventions was approved. It includes financing of measures related to knowledge transfer, innovation, advice, and Agricultural Knowledge and Innovation System (AKIS). A digital hub has been established within the ministry to support the development of the information systems required for the implementation of the Integrated Administration and Control System (IACS) and its components, as well as to provide the corresponding technical support to the Capacities of the Agency for Interventions and Payments in Agriculture (AIPA).

Preparation for the Farm Sustainability Data Network (FSDN) have advanced through legislative updates, refining methods and IT rules, and stakeholder consultations. A new pilot will test the revised tools before a wider rollout. Further efforts are required to establish the IACS. A concept aligned with the relevant EU acquis was established and is being developed in line with Commission recommendations, while the national farm registry was developed and piloted with a view to nationwide rollout. The development of the Land Parcel Identification System (LPIS) has advanced with the orthophoto acquisition and parcel delimitation is ongoing. AIPA must be further strengthened with an effective staff retention policy.

Steps towards the operationalisation of the Agricultural Knowledge and Innovation System (AKIS) have been taken including the establishment of the national digital platform.Further efforts are needed to improve links and knowledge transfer between research, advisory services

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and farmers, in particular for small farms.

Regarding agricultural markets - common market organisation, the reporting period saw progress in aligning with EU marketing standards for eggs and in the fruits and vegetables sector). Efforts should continue to further develop the regulatory framework in line with the EU acquis.

The rural development framework policy document is the National Strategy for Agriculture and Rural Development 2023-2030, and the National Fund for the Development of Agriculture and Rural Areas provides the corresponding financial support. According to the National Programme for Agriculture and Rural Development 2025-2030, Moldova will continue to implement rural development measures focused on investment and related support measures.

On quality policy, Moldova is progressing in aligning with the latest EU acquis in the area. Some progress has been achieved in the regulation for establishment and recognition of producer organisations and interbranch organisations in the agri-food sector.

In the area of organic farming, alignment with the EU acquis continued. Further work is required, in particular on the supervision of certification bodies and traceability of products. The system of control and enforcement should be strengthened.

On the fight against corruption, the Moldovan authorities are obliged to prevent, detect and report irregularities.

Chapter 12 - Food safety, veterinary and phytosanitary policy

The EU food acquis including hygiene rules for foodstuff production ensures a high level of food and feed safety, and a high level of protection of consumers’ interests. Animal health and welfare, and the safety of food of animal origin, are safeguarded together with plant health, the quality of seeds, plant reproductive material, animal nutrition and the use of plant protection products.

In the area of general food safety, institutional and human resource capacitywas further developed.The Human Resources Development Strategy 2024-2027 was implemented through a training programme for central level staff and staff from territorial subdivisions (inspectors) and border inspection posts of the National Food Safety Agency.

Moldova further strengthened its official controls oversight at various stages of the agri-food chain in line with EU standards. Institutional capacities for risk assessment were strengthened through the establishment of a Risk Assessment Directorate. Further implementing provisions for risk-based official controls of plants, plant products and wood packaging materials and treatment services were adopted, aiming for a broader alignment with the EU acquis.

New testing methods were accredited at the national reference laboratory. However, Moldova still needs to put in place a national network of laboratories, and a multiannual control plan aligned with EU acquis requirements.

Moldova further advanced the digitalisation of permissive act issuance and Moldova’s integration into the e-Phyto system, in preparation of full TRACES-NT integration, enhancing the reliability and traceability of consignments while improving compliance with standards.

On veterinary policy, additional implementing measures on the prevention, control and eradication of transmissible diseases in animals were established, aligning with the EU acquis on transmissible animal diseases. Moldova also enhanced Avian influenza and African swine fever detection and response, learning from the 2024/2025 outbreaks. Eradication measures were implemented, including stamping-out, movement restrictions, zoning, investigations and biosecurity measures. Consistent updating of farm animal registration, including non-

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commercial holdings, and their movements require further efforts. Increased monitoring of the wild boar population for containing the African swine fever is recommended.

On animal health and welfare, Moldova continued transposing key EU regulations on animal traceability, health certification, and import requirements for animals and animal products. Moldova strengthened its administrative and control framework by introducing new procedures for veterinary certification and updating sector-specific inspection checklists for aquaculture, germinal material, and pig holdings. Animal health requirements and certification of aquatic animals and products derived from them were further regulated.

The Parliament ratified the European Convention for the protection of animals kept for farming purposes and the European Convention for the protection of animals during international transport in August 2026. Nevertheless, the consistent implementation of animal welfare standards during transport, at farm and slaughter stages, remains a significant area for improvement in many establishments, especially small operators. More efforts are needed on enforcement, including ensuring adequate administrative capacity to put in place the certificates and approval systems required by the EU acquis. A workplan to address the remaining implementation challenges has to be established.

On the placing of food, feed and animal by-products on the market, Moldova implemented its national residue monitoring plan for residues of pharmacologically active substances, pesticides and contaminants in animal and animal products. The scope of the National Monitoring and Surveillance Programme for food safety, plant health, feed and veterinary medicinal products was further extended in 2026, including for sheep and goat meat.

Moldova increased its capacity to sample, analyse, and report antimicrobial resistance in food- producing animals and fresh meat as a result of improvements to the institutional framework, laboratory infrastructure and staff training.

Moldova strengthened the traceability mechanisms of animal drugs and medicines from import of substances to farm level application, including through digitalisation, ensuring interoperability with the animal register and laboratory testing.

On food safety rules, hygiene requirements for food of animal origin, bakery products and pasta were further aligned. The implementation, monitoring and documentation of Hazard Analysis and Critical Control Points (HACCP) by food business operators at all stages of production, processing and distribution remains a concern and should be addressed. While increasing the number of risk-based official controls obtained at the farm, production and distribution level, more awareness raising, training and investments for and by business operators are required to accelerate positive change. Further alignment with relevant EU rules on food contact materials, food additives and pesticide residues was achieved.

On specific rules for feed no significant developments were reported.

On phytosanitary policy, the legislative framework for plant health and placing of fertiliser and plant protection products on the market was further aligned with the EU acquis. Market surveillance remains to be improved from marketing and circulation of plant protection products and fertilisers to farm level application, especially the sustainable use of pesticides, and the recovery and destruction of obsolete products. Several specific procedures were updated in order to strengthen the seed certification system.

On the marketing of seed and other plant reproductive material, the country should finalise alignment with the EU acquis on the rules plant (PRM) and forest reproductive material (FRM). Moldova should first focus on establishing the necessary institutional frameworks, and technical capacities to implement and enforce the acquis effectively aiming at setting up functioning PRM

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and FRM certification systems.

On genetically modified organisms, Moldova adopted implementing legislation on their genetically modified organisms law. Food safety controls – especially in veterinary and phytosanitary inspections, laboratory testing, certification, and import enforcement – remain exposed to corruption risks. Moldova has strengthened its official control framework through NFSA, improving inspection and laboratory capacities to support risk-based checks, sample traceability, and standardised procedures. However, critical gaps persist in integrity safeguards, including inadequate conflict-of-interest controls for inspectors, weak oversight of sampling and testing processes, and limited accountability for misconduct.

Moldova should prioritise risk-based supervision, clear separation of inspection and testing functions, transparent certification, and robust sanctions for inspection-related misconduct, while reinforcing laboratory integrity and conflict-of-interest protections.

Chapter 13 - Fisheries and aquaculture

The common fisheries policy lays down rules on fisheries management, protects living resources of the sea and limits the environmental impact of fisheries. This includes setting catch quotas, managing fleet capacity, rules on control and inspection, rules on markets and aquaculture and support for fisheries and coastal communities. Further, it promotes a sustainable aquaculture.

Moldova needs to continue further aligning with the EU Common Fisheries Policy (CFP), particularly in areas relevant to a landlocked country, focusing on the development of its aquaculture and fish processing sectors.

The legislative framework is partially aligned with key EU CFP regulations and supports sustainable development, improved market standards and the fight against illegal fishing.

The strategic programme for the aquaculture sector for 2026-2030 was approved by the government in August 2026, setting out the directions for the development and modernisation of the aquaculture sector. The programme will be implemented in two stages based on dedicated action plans: one for the period 2026–2028 and the second for the 2029–2030, respectively.

In the area of inspection and control, new legislation has been prepared to improve the traceability of fishery and aquaculture products through the further strengthening of the official control system. Operational capacities have been strengthened through training of food safety inspectors at territorial subdivisions and border inspection posts, as well as by increasing quality awareness and standards compliance at frame level and among food business operators in the aquaculture sector.

Legislative measures have been taken, aimed at protecting aquatic biological resources and minimising the impact of fishing activities on sensitive habitats, namely the regulation of fishing in sensitive habitats and introduction of closed seasons, as well as reduction of by-catch.

Enforceability has been strengthened through the adoption of a regulation on the collection, reception, processing, management and use of scientific data in the aquaculture sector, that entered into force in July 2026, but additional efforts are required in the control and enforcement of these measures.

This provides the necessary normative framework for the alignment with the EU standards and acquis in the field. This mechanism will complement existing controls carried out by national authorities, including the National Food Safety Agency (ANSA) and the Customs Service, which currently oversee the quality, safety, and traceability of imported fish and fishery products. The agency will also be responsible for monitoring the implementation of the new provisions for the prevention, deterrence, and elimination of illegal, unreported, and unregulated fishing, which will

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enter into force in 2027.

In the area of structural actions, further efforts are needed to enhance administrative capacity and preparedness for administering future support schemes under the newly created National Fund for Support of Maritime Affairs, Fisheries, and Aquaculture and subsequently the European Maritime, Fisheries and Aquaculture Fund once Moldova becomes an EU Member State. The implementation mechanism of the Fund was approved by the government and entered into force in July 2026. The development and planned adoption of orders are conditional on the substantiation of the indicators set out in the Strategic Programme for the Aquaculture Sector 2026-2030 (SPAS). In addition, new regulations were adopted to set up a specialised aquaculture service at AIPA and strengthen the overall management, control, audit, reporting of sectoral financial support and future administration of financial instruments.

On international agreements, the law on the accession of Moldova to the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing was approved by the government. Moldova should further strengthen international cooperation activities. Progress should be made in integrating international fisheries agreements into the national framework, in finalising legislation covering the definition of fishing vessels in line with international fisheries instruments, and in adopting new rules with regards to the registration and deregistration of vessels engaging in illegal, unreported and unregulated (IUU) fishing.

As regards to the wider blue economy, Moldova continues to participate in the Common Maritime Agenda. It maintains a strong commitment at both the grassroots and ministerial level, with the Ministry of Environment coordinating cooperation among participating countries under the initiative during the reporting period. This positive regional cooperation should continue.

Moldova is not yet aligned with the acquis on state aid in the area of fisheries and aquaculture. A system for a state aid control in these sectors needs to be set up.

Chapter 22 - Regional policy and coordination of structural instruments

Regional policy is the EU’s main tool for reducing regional disparities and investing in sustainable and inclusive socio-economic growth. It is operating through shared management between the Commission and EU Member States. The implementation of cohesion policy programmes requires appropriate administrative capacity on programme and project level, the establishment of systems of sound financial management and control and also the fulfilment of other EU acquis elements such as environmental or public procurement legislation.

On the legislative framework, Moldova has created a network of growth pole cities to generate employment and to stimulating the development of adjacent zones by 2027, in line with the National Programme for the Development of Growth Pole Cities. Efforts continued to update the regulatory framework governing local action groups, with the goal of bringing it in line with European standards on community-led local development. A dedicated legal framework for cohesion policy, is in preparation, pending the establishment of the future cohesion policy regulatory framework. Moldova is also engaged in a dialogue with Eurostat regarding its NUTS set up.

The current institutional framework supports management of EU funds, with the State Chancellery acting as the national coordinating authority and overseeing the five Interreg cooperation programmes in which Moldova participates and the Growth Plan. An branch office for the EU Interreg NEXT Romania–Moldova Programme was established within the Central Regional Development Agency, with dedicated staff supporting beneficiaries. A national working group, comprising representatives of key ministries and government agencies, coordinates the management of EU funds, including cross-border, transnational, and interregional cooperation programmes with strengthened audit and control structures.

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On administrative capacity, Moldova has continuously strengthened the capacity of local public authorities in project implementation, monitoring, and evaluation through trainings and study visits. It has also continued strengthening its capacity to manage EU funds, supporting effective implementation of cross-border and transnational cooperation programmes under Interreg. While high staff turnover remains a challenge, measures such as salary increases, improved working conditions, and enhanced training programmes have helped mitigate its impact. Overall administrative capacity remains adequate, and monitoring and evaluation systems have been further strengthened through the integration of key governmental digital platforms into a single National Development Plan platform.

Multiannual programming takes place via the medium-term budget framework approved by the government. The current National Programme for Local Development aligns with the National Strategy for Regional Development 2022-2028 and strengthens national involvement in regional and local development initiatives. Moldova should continue aligning its regional policy programming with the upcoming legislative framework for EU cohesion policy in the 2028-2034 period. On financial management, control and audit, Moldova has improved the implementation of activities and effectiveness of its management and control systems, thus demonstrating its capacity for sound financial management. In addition, a nationwide management information system is being rolled out.

On the fight against corruption Moldova has established new risk registers and disciplinary committees, strict rules on gifts and conflicts of interest, and integrity and merit-based hiring. The National Anti-Corruption Centre also has flagged procurement irregularities to OLAF. Moldova needs yet to fully digitalise project management systems to reduce risks of favouritism and undue influence. In 2025, Moldova has taken an important anti-fraud step for future EU funds management by establishing the National Anti-Fraud System and designating the State Financial Control Inspectorate (SFCI) as the Anti-Fraud Coordination Service (AFCOS) and national contact point for OLAF. Additionally, the newly established National Anti-Fraud Network is a relevant coordination to connect managing bodies, control institutions, audit authorities and law-enforcement bodies when irregularities are detected in externally funded programmes. Its practical value will depend on clear reporting channels, standardised irregularity indicators, timely referral of suspected fraud, feedback between institutions and publication of aggregated results.

A new law on strengthening mechanisms to combat corruption, organised and financial crime, adopted in June 2026, creates a stronger basis for protecting EU and external funds, but the main priority is operationalisation of MCAF. The effectiveness of the system will need to be demonstrated through a track record of irregularity reporting, transmission of suspected fraud cases to the SFCI/AFCOS, cooperation with OLAF, recoveries, sanctions and final outcomes in fraud, corruption and money laundering cases affecting EU-related and other externally funded programmes.

Chapter 33 - Financial and budgetary provisions

This chapter covers the rules governing the funding of the EU budget (‘own resources’). These resources mainly consist of: (i) contributions based on the gross national income of each Member State; (ii) customs duties; (iii) the non-recycled plastic resource; and (iv) a resource based on value added tax. Member States must have the appropriate administrative capacity to adequately coordinate and ensure the correct calculation, collection, payment and control of own resources.

There was some to good progress in the underlying policy areas that indirectly affect the own resources system (for progress in these areas, see Chapters 16 – Taxation, 17- Economic and monetary policy; 18 – Statistics, 29 – Customs union, and 32 – Financial control). A

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Coordination Body for Own Resources is in place, and progress was made towards operationalising the necessary administrative structures.

On traditional own resources, no progress was achieved beyond that already reported under Chapter 29 - Customs union. Moldova remains partially aligned with the provisions of the EU Regulationon customs duty exemptions through its Customs Code.

Limited progress was achieved on VAT, with introduction of the reverse charge mechanism for VAT on electricity and natural gas in January 2026. Moldova must continue aligning its legislation with the EU acquis, especially on VAT structure, exemptions, deductions, special schemes, and the scope of reduced rates.

On the gross national income (GNI) resource, Moldova prepared an updated 2026–2030 roadmap for national accounts reform. Moldova needs to ensure the compilation of national accounts and GNI based on ESA 2010 definitions and accounting rules.

Further efforts are needed to fully align legislation, strengthen anti-fraud measures, upgrade IT systems, and operationalise the own resources coordination body.

Moldova strengthened the protection of national, public and external financial interests through the National Anti-Fraud System adopted, established in 2025, and the financial crime investigation system reform. The later gives the National Anti-corruption Centre a central role in detecting and investigating serious fraud, large-scale tax evasion, misuse of internal or external funds, money laundering and corruption-related offences affecting Moldova’s budget, public assets and external assistance. The main priority is to translate this framework into operational results: detection, referral to the criminal justice system, recovery, and transparent reporting.

CLUSTER 6: EXTERNAL RELATIONS

There are two chapters in this cluster: External relations (Chapter 30); Foreign, security and defence policy (Chapter 31).

Chapter 30 – External relations

The EU has a common commercial policy towards third countries, based on multilateral and bilateral agreements and autonomous measures. There are also EU rules in the field of humanitarian aid and development policy.

Moldova is working to align with the EU’s common commercial policy and continued to coordinate closely with the EU in the World Trade Organisation (WTO), including on investment facilitation, digital trade initiatives and dispute settlement by notifying, on 13 March, its intention to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA).

Moldova re-introduced an import control licensing mechanism for certain cereals and oilseeds, expiring on 31 October 2026. If the measure will be prolonged, it will require an additional assessment of its compatibility with the WTO and DCFTA’s provisions.

Moldova’s national legal framework is designed to align with the EU acquis on export control for dual-use goods and, is invited to continue enforcing the updates on the list of dual-use items.

Moldova is neither a participant nor an adherent to the Australia Group and is encouraged to become an adherent and eventually a member.

Moldova has to align with the new EU regulation on the screening of foreign investments (FDI). The authorities advanced the implementation of the law on the screening of investments in strategic sectors by developing and adopting the Investment Screening the Commission’s internal rules of procedure. Further efforts to strengthen the Commission’s functioning and

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ensure decisions are taken in a consistent and transparent manner are needed.

On bilateral trade agreements, Moldova has taken preparatory steps to ensure that its external economic agreements are compatible with EU obligations, including by introducing EU accession-linked expiration clauses in the provisions of bilateral free trade and investment agreements. It is also conducting a comprehensive inventory of its FTAs and bilateral investment treaties (BITs) as well as an analysis of the implications of its withdrawal from them. Moldova signed an economic cooperation agreement with the Republic of Korea in February 2026 and updated its FTA with Türkiye to incorporate the new Pan-Euro-Mediterranean rules of origin. It also launched negotiations on investment protection agreements with Italy and the Republic of Korea. Moldova has 41 bilateral investment treaties, of which 20 are with EU Member States covering 21 EU countries. In 2025, Moldova also granted preferential treatment to certain US products.

On development policy and humanitarian aid, Moldova remains a recipient of aid rather than a donor. With the Law on International Development Cooperation and Humanitarian Assistance having entered into force in January 2026, followed by the entry into force of the relevant secondary legislation in July 2026, Moldova continued to develop its legal and policy framework. In this regard, Moldova should continue to strengthen the implementation of the regulatory framework, including with regard to strategic planning, reporting and data collection in line with EU policies and principles. The Division for International Development Cooperation and Humanitarian Assistance within the Ministry of Foreign Affairs has been staffed. Moldova has provided humanitarian aid to Ukraine in the form of both goods and supplies.

Chapter 31 - Foreign, security and defence policy

Member States must be able to conduct political dialogues in the framework of foreign, security and defence policy, align with EU statements, take part in EU action, and apply agreed restrictive measures.

Moldova continued to actively engage in political dialogue with the EU on foreign and security policy, reflected in a large number of high-level political visits. In November 2025, the 4th High- Level Political and Security Dialogue took place in Brussels.

Moldova maintained an institutional framework enabling its participation in common foreign and security policy (CFSP) and common security and defence policy (CSDP). Moldova’s alignment rate with the EU common foreign and security policy (statements by the High Representative on behalf of the EU and decisions of the Council of the EU on restrictive measures) remained high and continued increasing from 87% in 2025 to 91% as of September 2026. It aligned with one further EU regime on restrictive measures in the reporting period, reaching 38 out of 41.

Good cooperation with the EU on preventing circumvention of restrictive measures related to Russia’s war of aggression against Ukraine has continued. Moldova continued applying the new centralised mechanism for the implementation of restrictive measures, with implementing decisions issued by the Interinstitutional Supervisory Council. Moldova should continue strengthening its enforcement capacities.

As a member of multiple international organisations, Moldova has continued to align with, support and co-sponsor international and EU positions, initiatives and resolutions, including in support of Ukraine and in favour of upholding sovereignty, territorial integrity and the UN Charter. Between November 2025 and May 2026, Moldova held the Presidency of the Council of Europe’s Committee of Ministers. Its mandate, focused on accountability for Ukraine, including the adoption of a resolution establishing an Enlarged Partial Agreement for a Special Tribunal for the Crime of Aggression against Ukraine, democratic resilience, responses to disinformation and migration with the adoption of the Chișinău Declaration on the topic of

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migration and the European Convention on Human Rights. In December 2025, Moldova also signed the Convention establishing the International Claims Commission for Ukraine regarding claims for damages, loss, or injury caused by Russia's invasion, ratifying it in July 2026. In May 2026, it also joined 35 states and the EU in establishing the Council of Europe’s Special Tribunal for the Crime of Aggression against Ukraine. Moldova further solidified its foreign policy direction through its withdrawal from the Commonwealth of Independent States (CIS) by denouncing the founding agreements of the organisation with relevant legislation adopted in April 2026. Moldova was elected in November 2025 to the UNESCO Executive Board for 2025- 2029. The United Nations Economic Commission for Europe continues to be headed by a Moldovan national.

Moldova is party to the Rome Statue of the International Criminal Court.

Moldova continued to support EU measures and documents on conflict prevention. Moldova is implementing its National Action Plan (NAP) for the implementation of UN Security Council Resolution 1325 on Women, Peace, and Security and should further develop the third NAP beyond 2027. Moldova should continue targeted measures to promote gender parity in high- level diplomatic assignments and decision-making roles within the foreign service.

On disarmament and non-proliferation, Moldova systematically aligned with EU statements in the framework of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), as well as other NPD fora. It participates in the Proliferation Security Initiative and The Hague Code of Conduct and is a party to the Chemical Weapons Conventions (CWC), the Biological Weapons Conventions (BWC), the Anti-Personnel Mine Ban Convention (APMBC) and the Arms Trade Treaty (ATT). Moldova demonstrated progress in implementing the National 2026-2030 Programme on Small Arms and Light Weapons (SALW). On arms export control, Moldova remains aligned with the Council Common Position 2008/944 , and generally implements its reporting obligations under the ATT.

On security measures, Moldova has continued to implement the agreement with the EU on security procedures for exchanging and protecting classified information.

Cooperation in the field of common security and defence policy (CSDP) remained strong under the strategic framework of the EU-Moldova Security and Defence Partnership. Moldova has been contributing to Operation EUFOR ALTHEA in Bosnia and Herzegovina and continues to contribute to EUTM Somalia. At the same time, Moldova continued efforts to modernise its armed forces, using the substantial support through the European Peace Facility.

Regarding hybrid threats, Moldova has built up remarkable resilience and an ability to counter hybrid threats and foreign information manipulation and interference (FIMI), despite evolving patterns of Russian hybrid activities and the continued spilled-over effects of Russia’s war of aggression against Ukraine. In this context, it is the rural and less developed regions in the country that are mostly vulnerable to FIMI. Cooperation increased between Moldova and the EU in addressing hybrid threats, with the country also sharing valuable lessons learned and thereby contributing to Europe’s shared security. The National Agency for Cyber Security has been further strengthened, and the Centre for Strategic Communications and the Countering Disinformation continued to play a crucial role. The National Crisis Management Centre (NCMC) was established in September 2025, and despite still being in the early stages of institutional development, it has already demonstrated its ability to respond quickly and in principle fulfil its coordination function in a series of national level emergencies in 2026. To be fully operational, NCMC needs to expedite recruitment processes and further alignment to EU standards. In December 2025, the National Security Council adopted the Plan for Strengthening Democratic Resilience against Electoral Interference, establishing a cross-sectoral approach to national resilience and hybrid threats, structured around information security, cybersecurity, fighting illicit

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financing, and public order.

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ANNEX I – RELATIONS BETWEEN THE EU AND MOLDOVA

Moldova applied for EU membership in March 2022 and was granted European perspective and candidate country status in June 2022. In December 2023, the European Council decided to open accession negotiations with the country. In 2026, three intergovernmental conferences have taken place, opening Cluster 1 (fundamentals) in June, Cluster 6 (external relations) in July as well as Cluster 2 (internal market) and Cluster 3 (competitiveness & inclusive growth) in October.

Moldova continues to broadly implement its obligations under the Association Agreement (AA), including those related to its Deep and Comprehensive Free Trade Area (DCFTA). The AA/DCFTA remains the bilateral legal instrument serving as the basis for political association and economic integration between the EU and Moldova. Regular political, economic and other sectoral dialogue between the EU and Moldova has continued through the AA/DCFTA structures. The EU-Moldova Public Administration Reform Subcommittee took place for the first time on 25 June 2026.

The bilateral relations between the EU and Moldova remained strong and continued to deepen across policy areas. The second EU-Moldova Summit took place on 22 June 2026. The latest EU-Moldova Association Council meeting was held on 5 October 2026. The 12th meeting of the EU-Moldova Association Committee in Trade Configuration took place in November 2025, and the EU-Moldova Parliamentary Association Committee met in May 2026. The High-Level Energy Dialogue continued holding biannual meetings during the reporting period with the latest meeting held in May 2026, and the latest High-Level Political and Security Dialogue was held in November 2025. The first EU-Moldova Investment Conference took place in June 2026.

Trade relations with the EU have further intensified since the start of Russia’s war of aggression against Ukraine. In 2025, the EU remained Moldova’s biggest trade partner, accounting for 56% of its total trade in goods, and its main export destination, with over two thirds of goods exports going to the EU.

The EU remains fully committed to supporting a comprehensive, peaceful, and sustainable settlement of the Transnistrian conflict, based on the sovereignty and territorial integrity of Moldova within its internationally recognised borders. The DCFTA applies to the entire territory of Moldova.

Citizens of Moldova have enjoyed visa-free travel to the Schengen area since April 2014. As part of the visa liberalisation monitoring mechanism, the Commission has regularly assessed the progress made by the country in implementing reforms under the visa roadmap. The Commission’s eight report under the Visa Suspension Mechanism, published in December 2025, concluded that Moldova continues to take action to address the recommendations made in the previous year’s report. A readmission agreement between the European Union and Moldova entered into force in January 2018.

The EU remained deeply committed under the common foreign and security policy to further strengthen cooperation with Moldova in the framework of the Security and Defence Partnership, which Moldova was the first country to sign with the EU in 2024. The EU Partnership Mission in Moldova (EUPM) continued supporting Moldovan institutions in building resilience. Facility (EPF) reached EUR 317 million. In addition, the EU has rolled-over in place a dedicated sanctions regime targeting those responsible for actions aimed at destabilising, undermining or threatening the sovereignty and independence of Moldova.

The EU is the largest provider of financial assistance to Moldova. In 2021-2025, the EU allocated over EUR 1.2 billion in grants to Moldova and mobilised EUR 1.7 billion for projects in Moldova, together with international financial institutions. The EU continues to implement the

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Growth Plan for Moldova, worth EUR 1.9 billion and underpinned by a Reform and Growth Facility for the period of 2025-2027. To date, the country has unlocked EUR 661 million.

Bilateral programmes are complemented by a package of multi-country and regional programmes supporting, among others, civil society, reforms in the fundamentals and the energy sector. The country also receives support from TAIEX and competitiveness programmes together with international financial institutions and international organisations.

Since 2014, Moldova has progressively extended its participation in EU programmes. It has joined the EU Customs programme, Fiscalis, LIFE, EU4Health, Horizon Europe, the Connecting Europe facility (CEF), the single market programme, the Union Civil Protection Mechanism (UCPM), Digital Europe, Employment and Social Innovation (EaSI), the Citizen, Equality, Rights and Values Programme (CERV), and the Justice Programme. As of 1 January 2026, Moldova joined the Creative Europe programme. Organisations and individuals from Moldova are also eligible for certain schemes under the Erasmus+ and European Solidarity Corps programmes. Moldova participates in several Interreg programmes and is a member of the EU macro-regional strategy for the Danube region. Moldova’s participation fee for EU programmes has been waived as a result of the impact on Moldova of Russia’s war of aggression against Ukraine. To strengthen the digital sector, to enhance access to EU initiatives and funds and to support the development of social and solidarity economy, Moldova is participating as an observer in a pilot project under the Technical Support Instrument.

Since its launch in 2009, Moldova has participated in the Eastern Partnership (EaP). The country also takes part in the Connectivity Agenda Platform launched in June 2026.

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ANNEX II – STATISTICAL ANNEX

STATISTICAL DATA (as of 14/09/2026)

Moldova**

Basic data Note 2013 2021 2022 2023 2024 2025

Population (thousand) 3 559 i 2 644 i 2 565 i 2 513 pi 2 423 pi 2 416 i

Total area of the country (km²) 1) 2) 33 846 w 33 849 w 33 849 w 33 849 w 33 849 w 33 848 w

National accounts Note 2013 2021 2022 2023 2024 2025

Gross domestic product (GDP) (million national currency) 3) : 242 079 274 488 303 554 323 933 353 521 p

Gross domestic product (GDP) (million euro) 3) : 11 571 13 794 15 454 16 825 18 045 p

GDP per capita (euro) 3) : 4 460 5 450 6 360 7 000 7 590 p

GDP per capita (in purchasing power standards (PPS) 3) 5 927 w 16 377 w 17 461 w 20 910 w 23 195 w 25 803 pw

GDP per capita (in PPS), relative to the EU average (EU-27 = 100) 3) : 31.5 ew 30.9 ew 34.9 ew 36.5 ew 37.0 ew

Real GDP growth rate: change on previous year of GDP volume (%) 3) 9.0 w 13.9 w - 4.6 w 1.2 w 0.3 w 2.4 pw

Employment growth (national accounts data), relative to the previous year (%) 3) : 1 2 3 - 4 :

Labour productivity growth: growth in GDP (in volume) per person employed, relative to the

previous year (%)

3) : 13 - 7 - 2 4 :

Unit labour cost growth, relative to the previous year (%) 3) - 5 w - 5 w 1 w 7 w 5 w 0 pw

Nominal unit labour cost index based on persons (3 year % change) 3) 29.0 iw 22.4 iw 23.2 iw 28.2 iw 15.8 iw :

Labour productivity per person employed: GDP (in PPS) per person employed relative to EU

average (EU-27 = 100)

3) : 46 ew 44 ew 47 ew 47 ew 45 ew

Gross value added by main sectors

Agriculture, forestry and fisheries (%) 3) : 12.3 9.4 8.2 8.5 8.6 p

Industry (%) 3) : 14.7 13.3 12.2 11.3 11.4 p

Construction (%) 3) : 9.3 8.8 8.3 8.3 8.4 p

Services (%) 3) : 63.6 i 68.4 i 71.3 i 72.0 i 71.6 pi

Final consumption expenditure, as a share of GDP (%) 3) : 100.3 102.4 103.7 103.4 105.0 p

Gross fixed capital formation, as a share of GDP (%) 3) : 24.1 22.1 19.4 20.5 22.0 p

Exports of goods and services, relative to GDP (%) 3) : 30.6 41.2 35.1 31.6 31.8 p

Imports of goods and services, relative to GDP (%) 3) : 57.8 70.9 58.9 57.3 60.9 p

Gross fixed capital formation by the general government sector, as a percentage of GDP (%) : : : : : :

Business Note 2013 2021 2022 2023 2024 2025

Industrial production volume index (2015 = 100) : 100.0 w 96.8 w 92.8 w 92.5 w 98.1 w

Number of active enterprises (number) 51 269 w 38 783 w 42 056 w 46 653 w 48 190 w :

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Birth rate: number of enterprise births in the reference period (t) divided by the number of

enterprises active in t (%)

11.9 w 11.3 w 11.0 w : 5.5 w :

Death rate: number of enterprise deaths in the reference period (t) divided by the number of

enterprises active in t (%)

5.4 w 8.6 w 5.3 w : 9.8 w :

People employed in SMEs as a share of all persons employed (within the non-financial

business economy) (%)

56.7 iw 71.1 iw : : : :

Value added by SMEs (in the non-financial business economy) (EUR million) : : : : : :

Total value added (in the non-financial business economy) (EUR million) : : : : : :

Inflation rate and house prices Note 2013 2021 2022 2023 2024 2025

Consumer price index (CPI), change relative to the previous year (%) 4.6 w 5.1 w 28.7 w 13.4 w 4.7 w 7.8 w

Balance of payments Note 2013 2021 2022 2023 2024 2025

Balance of payments: current account total (million euro) - 369.1 w - 1 435.7 w - 2 358.2 w - 1 709.0 w - 2 786.1 w :

Balance of payments current account: trade balance (million euro) - 2 362.7 w - 3 540.6 w - 4 933.1 w - 4 489.0 w - 5 193.1 w :

Balance of payments current account: net services (million euro) 114.5 w 399.3 w 863.0 w 854.0 w 864.1 w :

Balance of payments current account: net balance for primary income (million euro) 673.1 w 225.2 w 56.7 w 246.3 w 85.9 w :

Balance of payments current account: net balance for secondary income (million euro) 1 206.0 w 1 480.5 w 1 655.2 w 1 679.6 w 1 457.0 w :

Net balance for primary and secondary income: of which government transfers (million euro) 113.6 w 156.4 w 279.0 w 312.8 w 139.0 w :

*3 year backward moving average of the current account balance relative to GDP (%) - 7.6 iw - 9.8 iw - 12.4 iw - 13.5 iw - 14.9 iw :

*Five year change in share of world exports of goods and services (%) : : : : : :

Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 158.9 w 314.2 w 514.0 w 323.3 w 332.6 w 321.2 w

Foreign direct investment (FDI) abroad (million euro) 23.2 dw 12.1 dw 42.7 dw 10.3 dw 91.0 dw 87.7 dw

of which FDI of the reporting economy in the EU-27 countries (million euro) : : : : : :

Foreign direct investment (FDI) in the reporting economy (million euro) 182.1 dw 326.3 dw 556.7 dw 333.7 dw 423.6 dw 408.9 dw

of which FDI of the EU-27 countries in the reporting economy (million euro) : : : : : :

*Net international investment position, relative to GDP (%) 4) - 21.6 w - 39.8 w - 42.3 w - 34.9 w - 34.6 w - 38.1 w

Year on year rate of change in gross inflow of remittances (in national currency) from migrant

workers (%)

3) 5) 11.3 diw 9.0 diw 8.3 diw 6.7 diw 5.7 dpiw :

Public finance Note 2013 2021 2022 2023 2024 2025

General government deficit / surplus, relative to GDP (%) - 1.5 ew - 1.9 ew - 3.2 ew - 5.1 ew - 3.9 ew - 4.0 ew

General government gross debt relative to GDP (%) 18.5 ew 33.9 ew 34.2 ew 35.4 ew 38.0 ew 38.1 ew

Total government revenues, as a percentage of GDP (%) 30.9 ew 32.0 ew 33.3 ew 33.4 ew 34.1 ew 35.5 ew

Total government expenditure, as a percentage of GDP (%) 32.3 ew 33.9 ew 36.5 ew 38.5 ew 37.9 ew 39.6 ew

Financial indicators Note 2013 2021 2022 2023 2024 2025

Gross external debt of the whole economy, relative to GDP (%) 3) 68.1 iw 66.6 iw 65.3 iw 59.0 iw 58.7 piw :

Gross external debt of the whole economy, relative to total exports (%) 212.7 w 217.7 w 158.4 w 167.1 w 186.0 w 177.9 w

114

Money supply: M1 (banknotes, coins, overnight deposits, million euro) 1 509.2 w 3 027.9 w 3 115.9 w 4 137.3 w 4 874.9 w 5 374.0 w

Total credit by monetary financial institutions to residents (consolidated) (million euro) 6) : 2 991.9 w 3 207.4 w 3 495.0 w 4 373.5 pw 5 182.3 pw

*Annual change in financial sector liabilities (%) : 8.7 ew 13.1 ew 10.6 ew 7.9 pw :

*Private debt, consolidated, relative to GDP (%) 6) : 52.9 ew 51.4 ew 45.1 ew 48.8 pw 50.0 pw

Interest rates: day-to-day money rate, per annum (%) : : : : : :

Euro exchange rates: average of period (1 euro = … national currency) 16.724 20.922 19.900 19.643 19.253 19.591

Trade-weighted effective exchange rate index, 42 countries (2015 = 100) 105.2 w 123.0 w 132.4 w 146.2 w 157.1 w 158.5 w

*3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries

(2015 = 100)

0.1 iw 0.0 iw 0.1 iw 0.2 iw 0.3 iw 0.2 iw

Value of reserve assets (including gold) (million euro) 2 049.5 w 3 445.8 w 4 206.0 w 4 903.5 w 5 247.5 w :

External trade in goods Note 2013 2021 2022 2023 2024 2025

Value of imports: all goods, all partners (million euro) 4 135 w 6 085 w 8 788 w 8 021 w 8 385 w 9 662 pw

Value of exports: all goods, all partners (million euro) 1 827 w 2 670 w 4 114 w 3 746 w 3 286 w 3 339 pw

Trade balance: all goods, all partners (million euro) - 2 308 iw - 3 415 iw - 4 673 iw - 4 275 iw - 5 099 iw - 3 695 iw

Terms of trade (export price index / import price index * 100) (number) 97.2 iw 110.4 iw 105.4 iw 96.0 iw : :

Share of exports to EU-27 countries in value of total exports (%) 42.4 iw 61.0 iw 58.4 iw 65.4 iw 67.3 iw 66.1 iw

Share of imports from EU-27 countries in value of total imports (%) 43.9 iw 43.8 iw 47.4 iw 48.3 iw 50.2 iw 54.4 iw

Demography Note 2013 2021 2022 2023 2024 2025

Crude rate of natural change of population (natural growth rate): number of births minus

deaths (per thousand inhabitants)

- 0.1 - 6.2 ep - 3.6 ep - 3.9 ep - 4.1 ep - 4.2 e

Infant mortality rate deaths of children under one year of age (per thousand live births) 9.5 : 9.0 p 10.0 : :

Life expectancy at birth: male (years) : : : 67.5 ep : :

Life expectancy at birth: female (years) : : : 76.4 ep : :

Labour market Note 2013 2021 2022 2023 2024 2025

Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that

is economically active (%)

7) 49.9 w 52.8 w 53.7 w 58.4 w 59.1 w 57.2 bw

Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are

in employment (%)

7) 47.4 w 51.1 w 52.1 w 55.7 w 56.8 w 55.0 bw

Male employment rate for persons aged 20–64 (%) 7) 49.0 w 55.6 w 55.8 w 58.8 w 58.6 w 58.6 bw

Female employment rate for persons aged 20–64 (%) 7) 45.8 w 46.9 w 48.7 w 53.0 w 55.1 w 51.7 bw

Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are

in employment (%)

7) 39.5 w 42.6 w 44.1 w 47.1 w 47.9 w 44.0 bw

Employment by main sectors

Agriculture, forestry and fisheries (%) 7) 28.8 w 21.5 w 20.8 w 20.9 w 18.1 w 14.0 bw

Industry (%) 12.1 w 14.4 w 14.8 w 14.4 w 13.4 w 12.3 bw

Construction (%) 5.5 w 7.7 w 7.7 w 7.1 w 7.5 w 10.0 bw

Services (%) 53.5 w 56.4 w 56.7 w 57.6 w 61.0 w 63.7 bw

115

People employed in the public sector as a share of total employment, persons aged 20–64

(%)

27.2 w 28.6 w 28.8 w 28.5 w 30.7 w 31.4 bw

People employed in the private sector as a share of total employment, persons aged 20–64

(%)

7) 72.9 w 71.4 w 71.2 w 71.5 w 69.3 w 68.6 bw

Unemployment rate: proportion of the labour force that is unemployed (%) 5.1 w 3.2 w 3.1 w 4.6 w 4.0 w 3.9 bw

Male unemployment rate (%) 6.0 w 3.9 w 3.6 w 5.0 w 3.8 w 4.3 bw

Female unemployment rate (%) 4.1 w 2.5 w 2.6 w 4.2 w 4.1 w 3.4 bw

Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 12.2 w 9.2 w 10.7 w 11.5 w 9.8 w 7.4 bw

Long-term unemployment rate: proportion of the labour force that has been unemployed for

12 months or more (%)

1.3 w 0.8 w 0.7 w 0.8 w 0.6 w 0.8 bw

Unemployment rate for persons (aged 25–64) having completed at most lower secondary

education (ISCED levels 0-2) (%)

4.5 w 4.2 w 3.8 w 5.8 w 5.0 w 4.5 bw

Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED

levels 5-8) (%)

4.1 w 1.7 w 1.7 w 2.3 w 3.0 w 3.6 bw

Social cohesion Note 2013 2021 2022 2023 2024 2025

Average nominal monthly wages and salaries (national currency) 8) 3 674 w 8 980 w 10 447 w 12 209 w 13 990 w :

Index of real wages and salaries (index of nominal wages and salaries divided by the

inflation index) (2016 = 100)

47 w 112 w 129 w 150 w 173 w :

Gini coefficient 33 w 36 w 35 w 36 w 36 w :

Poverty gap 21.5 w 26.1 w 21.4 w 20.7 w 22.9 w :

Standard of living Note 2013 2021 2022 2023 2024 2025

Number of passenger cars relative to population size (number per thousand population) 137.0 279.0 e 297.0 ep 325.0 ep 349.0 e 378.0

Infrastructure Note 2013 2021 2022 2023 2024 2025

Density of railway network (lines in operation per thousand km²) 1) 2) 34.2 iw 34.0 iw 34.0 iw 34.0 iw 34.0 iw :

Length of motorways (kilometres) 0 0 0 0 0 :

Education, Innovation and Research Note 2013 2021 2022 2023 2024 2025

Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8) 33.8 w 31.8 w 31.8 w 31.3 w 35.3 w 35.1 bw

Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8),

males

29.6 w 28.6 w 27.8 w 23.5 w 27.2 w 30.6 bw

Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8),

females

37.8 w 34.7 w 35.2 w 38.1 w 42.5 w 39.1 bw

Participation in early childhood education (children aged 3 and over) : 89.2 w 94.4 w 98.9 w 104.9 pw 109.0 pw

Participation in early childhood education (children aged 3 and over), males : 89.6 w 94.4 w 99.2 w 105.1 pw 109.6 pw

Participation in early childhood education (children aged 3 and over), females : 88.9 w 94.5 w 98.6 w 104.7 pw 108.4 pw

Low achieving 15-year-olds in reading (%) : : : : : :

Low achieving 15-year-olds in mathematics (%) : : : : : :

116

Low achieving 15-year-olds in science (%) : : : : : :

Early leavers from education and training: proportion of persons aged 18-24 with at most

lower secondary education (at most ISCED 2011 level 2) who are not in further education or

training

21.0 w 19.6 w 21.5 w 17.5 w 16.4 w 18.0 w

Early leavers from education and training: proportion of men aged 18-24 with at most lower

secondary education (at most ISCED 2011 level 2) who are not in further education or

training

25.9 w 23.1 w 24.5 w 18.6 w 16.6 w 21.0 w

Early leavers from education and training: proportion of women aged 18-24 with at most

lower secondary education (at most ISCED 2011 level 2) who are not in further education or

training

15.5 w 16.1 w 18.7 w 16.4 w 16.1 w 14.8 w

Proportion of persons aged 25-64 having participated in education and training (last 4

weeks)

1.9 w 1.1 w 1.3 w 2.2 w 2.9 w :

Proportion of persons aged 25-64 having participated in education and training (last 4

weeks), men

: 0.9 w 1.1 w 1.6 w 2.1 w :

Proportion of persons aged 25-64 having participated in education and training (last 4

weeks), women

: 1.2 w 1.4 w 2.7 w 3.6 w :

Exposure of vocational education and training (VET) graduates to work-based learning (% of

population aged 20-34)

: : : : : :

Share of individuals having at least basic digital skills (% of population aged 16-74) : : : : : :

Share of individuals having at least basic digital skills (% of population aged 16-74), males : : : : : :

Share of individuals having at least basic digital skills (% of population aged 16-74), females : : : : : :

Public expenditure on education relative to GDP (%) 3) 5.6 iw : : : : :

Gross domestic expenditure on R&D relative to GDP (%) 3) 0.30 iw 0.23 iw 0.23 iw 0.22 iw 0.22 piw :

Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP

(%)

: : : : : 0.19 p

Percentage of households who have internet access at home (%) 35.0 w 66.8 w 67.5 w 70.6 w 74.1 w 79.7 w

Environment Note 2013 2021 2022 2023 2024 2025

Index of greenhouse gas emissions, CO2 equivalent (1990 = 100) 28.8 ew 32.3 ew 30.5 ew : : :

Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant

prices)

158.0 w 73.3 w 62.7 w 51.2 w 49.1 w :

Electricity generated from renewable sources relative to gross electricity consumption (%) 1.7 3.6 5.5 9.2 13.7 22.3 p

Road share of inland freight transport (based on tonne-km) (%) : : : : : :

Energy Note 2013 2021 2022 2023 2024 2025

Primary production of all energy products (thousand TOE) 599 762 525 586 558 :

Primary production of crude oil (thousand TOE) 10 5 5 4 2 :

Primary production of solid fuels (thousand TOE) 0 0 0 0 0 :

Primary production of gas (thousand TOE) 0 0 0 0 0 :

Net imports of all energy products (thousand TOE) 1 966 i 2 306 i 2 181 i 1 944 i 2 130 i :

Gross inland energy consumption (thousand TOE) 2 560 3 009 2 692 2 573 2 686 :

117

Gross electricity generation (GWh) 905 1 131 995 1 169 1 498 :

Agriculture Note 2013 2021 2022 2023 2024 2025

Agricultural output volume index (at producer prices) (2015 = 100) 87.5 w 178.1 w 150.9 w 153.7 w : :

Utilised agricultural area (thousand hectares) : : : : : :

Livestock numbers: live bovine animals (thousand heads, end of period) 189.0 w 104.1 w 102.4 w 101.0 w 98.8 w 95.8 w

Livestock numbers: live swine (thousand heads, end of period) 420.0 w 347.9 w 340.1 w 350.7 w 379.6 w 289.6 w

Livestock numbers: live sheep and live goats (thousand heads, end of period) 849.2 iw 573.7 iw 558.7 iw 549.9 iw 561.7 iw :

Raw milk available on farms (thousand tonnes) 9) 526.9 w 295.3 w 270.5 w 261.3 w 267.2 w 282.5 w

Harvested crop production: cereals (including rice) (thousand tonnes) 2 680.8 iw 4 690.0 iw 1 784.4 iw 3 214.8 iw 2 168.3 iw :

Harvested crop production: sugar beet (thousand tonnes) 1 009.0 w 757.8 w 478.2 w 428.3 w 292.7 w 335.1 w

Harvested crop production: vegetables (thousand tonnes) 292.0 w 232.0 w 286.1 w 322.6 w 283.8 w 310.7 w

Source: Eurostat and/or the statistical authorities in Moldova**

: = not available b = break in time series d = definition differs e = estimated p = provisional i = Eurostat estimate w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and

without any assurance as regards their quality and adherence to EU statistical methodology

* = Macroeconomic Imbalance Procedure (MIP) indicator

** = The data managed by the National Bureau of Statistics of the Republic of Moldova does not include data from the

Transnistrian region over which the government of the Republic of Moldova does not exercise control.

Footnotes:

1) Including data from the Transnistrian region.

2) Including wetlands.

3) Based on 2008 SNA.

4) GDP according to SNA 2008.

5) Personal transfers.

6) Data are for Q1 2025.

7) Including persons producing goods for own consumption.

8) Includes units with one and more employees.

9) Raw milk available at farms includes cow, sheep and goat milk.

118

EN EN

EUROPEAN COMMISSION

Brussels, 4.11.2026 SWD(2026) 700 final

COMMISSION STAFF WORKING DOCUMENT

Gradual integration strands across the accession chapters

Accompanying the document

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

2026 Communication on EU enlargement policy

{COM(2026) 690 final} - {SWD(2026) 690 final} - {SWD(2026) 691 final} - {SWD(2026) 692 final} - {SWD(2026) 693 final} - {SWD(2026) 694 final} - {SWD(2026) 695 final} - {SWD(2026) 696 final} - {SWD(2026) 697 final} -

{SWD(2026) 698 final} - {SWD(2026) 699 final}

Gradual integration strands across the accession chapters

EU PROGRAMMES

CEF Digital Connecting Europe Facility - Digital

CEF Energy Connecting Europe Facility - Energy CEF Transport Connecting Europe Facility - Transport CERV Citizens, Equality, Rights and Values Programme Creative Europe Creative Europe Customs P Customs Programme DIGITAL P Digital Europe Programme EDF European Defence Fund EDIP European Defence Industry Programme Erasmus+ Erasmus+ ESC European Solidarity Corps ESF+ (EaSI) European Social Fund Plus (Employment and Social Innovation strand) EU4Health P EU4Health Programme EURATOM Euratom Research and Training Programme EU Space P EU Space Programme Fiscalis P Fiscalis Programme Horizon Europe Horizon Europe Interreg Interreg Justice P Justice Programme LIFE Programme for the Environment and Climate Action SMP Single Market Programme UAFP Union Anti-Fraud Programme UASL Ukraine Support Loan UCPM Union Civil Protection Mechanism USCP Union Secure Connectivity Programme

EU AGENCIES

BEREC Office Agency for Support for the Body of European Regulators for Electronic Communications CEDEFOP European Centre for the Development of Vocational Training CEPOL European Union Agency for Law Enforcement Training EASA European Union Aviation Safety Agency ECDC European Centre for Disease Prevention and Control ECHA European Chemicals Agency EEA European Environment Agency EFCA European Fisheries Control Agency EFSA European Food Safety Authority EIGE European Institute for Gender Equality ELA European Labour Authority EMA European Medicines Agency EMSA European Maritime Safety Agency ENISA European Union Agency for Cybersecurity ERA European Union Agency for Railways ETF European Training Foundation EUAA European Union Agency for Asylum EUDA European Union Drugs Agency EUIPO European Union Intellectual Property Office EU-OSHA European Agency for Safety and Health at Work Euratom Supply Agency Euratom Supply Agency Europol European Union Agency for Law Enforcement Cooperation Eurofound European Foundation for the Improvement of Living and Working Conditions Eurojust European Union Agency for Criminal Justice Cooperation EUSPA EU Agency for the Space Programme

Frontex European Border and Coast Guard Agency

EN EN

EUROPEAN COMMISSION

Brussels, 4.11.2026 COM(2026) 690 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

2026 Communication on EU enlargement policy

{SWD(2026) 690 final} - {SWD(2026) 691 final} - {SWD(2026) 692 final} - {SWD(2026) 693 final} - {SWD(2026) 694 final} - {SWD(2026) 695 final} - {SWD(2026) 696 final} - {SWD(2026) 697 final} - {SWD(2026) 698 final} -

{SWD(2026) 699 final} - {SWD(2026) 700 final}

1

A STRONGER EUROPE THROUGH ENLARGEMENT

INTRODUCTION

In a geopolitical environment marked by uncertainty, strategic competition, economic fragmentation and war, the European Union remains an anchor of peace, security, prosperity and democratic stability.

Enlargement has been one of the European Union’s most consequential policies for promoting stability, democratic transformation and economic integration across the continent. Today, its strategic importance has grown further. A credible enlargement policy is an investment in Europe’s collective security, competitiveness and resilience, strengthening the Union’s capacity to protect its interests, reduce vulnerabilities and create opportunities for citizens and businesses.

Enlargement is already contributing to these objectives. Through reforms, investment and gradual integration, enlargement countries are strengthening their democratic institutions, becoming more closely integrated into the European economy and contributing increasingly to Europe’s security and resilience. At the same time, closer integration with the Union brings tangible benefits before accession, including through greater economic opportunities, improved connectivity, opportunities for work, study and research and increased participation in selected areas of the single market.

Enlargement countries need to prepare for the rights and obligations of membership, while the EU needs to prepare for a larger Union capable of acting effectively and delivering on its priorities. To prepare for enlargement, the European Commission adopted a Communication1 on how the Union can anticipate enlargement in its policies, institutions, governance and financial framework, adapting where necessary as the accession process advances. This includes ensuring that future accessions are accompanied by effective and proportionate safeguards to protect the functioning of the Union and ensure that commitments made in the accession process continue to be respected after accession.

The reporting period showed that sustained reform efforts lead to concrete progress to EU membership as evidenced in particular by the four frontrunners. Montenegro’s remarkable progress in EU accession negotiations demonstrates that enlargement remains a reality within reach. With all 33 negotiating chapters opened and 21 provisionally closed, Montenegro has made significant strides in advancing its membership preparations and, in the Commission’s opinion, has met the closing benchmarks in all chapters. The country has made decisive progress on the fundamentals by achieving good results in areas such as the rule of law, economic governance, statistics and public administration reform. The work on Montenegro’s accession treaty and the adoption of Council Conclusions2 on the financial package for the accession negotiations with Montenegro confirm the country as the frontrunner in the EU’s enlargement process.

Albania also made significant progress in its accession negotiations. It opened all accession negotiation clusters in just over a year, met the interim benchmarks on cluster 1 and provisionally closed the first four chapters. Albania needs to maintain the pace of reforms, ensuring speed and quality, to fulfil closing benchmarks in all chapters of negotiations.

The Republic of Moldova’s (‘Moldova’) consistent implementation of reforms and its strong commitment to align with the EU acquis despite unprecedented external pressures demonstrate its readiness to advance on its EU path. All clusters have been assessed by the Commission as ready to be opened since December 2025. Clusters 1, 2, 3 and 6 were formally

1 COM(2026) 705 final 2 14265/26

2

opened. Moldova has continued to pursue sustained reforms to prepare for the next steps in the process, particularly fulfilling the interim benchmarks for cluster 1. Maintaining the strong momentum of EU-related reforms with greater focus on implementation and enforcement will be essential.

Ukraine has shown steadfast commitment to European integration through continued reform implementation, even in the face of most difficult circumstances brought by Russia’s war of aggression, which has been ongoing for more than four years. This is a testament to the Ukrainian people's resilience. Reforms have gradually continued during the reporting period, with reform momentum recently accelerating. All clusters have been assessed by the Commission to be ready to be opened since December 2025. Clusters 1, 2, 3 and 6 were formally opened.

Overall, progress across enlargement countries has remained uneven. North Macedonia has yet to fulfil the commitment it made to amend its constitution 3. At the same time, the country has recently accelerated reforms under the Growth Plan. The Kosovo* government has been in a caretaker mode for most of the reporting period but started to deliver on the Growth Plan. Bosnia and Herzegovina, and Serbia have not progressed on the fundamentals. Türkiye remains a candidate country, and a key partner for the EU; the underlying conditions for a standstill in accession negotiations remain in place. In Georgia there has been further backsliding on the fundamentals, and the accession process remains de facto halted.

The credibility of the enlargement process depends on reforms being put into practice and maintained over time. Progress towards membership therefore continues to be determined by objective criteria and each country’s own merits, with the fundamentals setting the overall pace of accession negotiations.

Gradual integration brings the Union and enlargement countries closer together before accession. Access to particular policies or parts of the single market depends on alignment with the EU rules, the capacity to implement and enforce them, and respect for the principles of the accession process. Gradual integration complements and reinforces, but does not replace, the accession process. The EU single market is the world’s second largest economy. The opportunity to expand it through gradual integration (followed by accession) means expanding a highly successful economic model. At a time of increasing global competition, enlargement strengthens Europe’s economic foundations and supports sustainable prosperity for all Europeans. Alignment with the EU Common Foreign and Security Policy (CFSP) and stepped-up cooperation on CFSP and the common security and defence policy (CSDP) is part of gradual integration logic and highlights the enlargement countries’ contribution to Europe’s security.

I. PROTECTING EUROPE – DEMOCRACY, SECURITY AND RESILIENCE

A stronger Europe starts with a safer and more resilient Europe. Enlargement strengthens the foundations of European security by extending the area in which democracy, the rule of law, fundamental rights and accountable institutions are firmly anchored. Strong democratic institutions and effective rule of law systems are not only core requirements for EU membership, they are also essential for the capacity of states and societies to withstand internal and external pressures.

At the same time, Europe’s security environment has fundamentally changed. Russia’s war of aggression against Ukraine and recent military escalation in the Black Sea, hybrid and cyberattacks, foreign information manipulation and interference, organised crime, and vulnerabilities affecting critical infrastructure, as well as climate related growing risk of natural hazards, demonstrate the increasingly interconnected nature of security. Developments in

3 Council Conclusions of July 2022 (11440/22) * This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.

3

enlargement countries can have direct consequences for the EU’s security, just as closer cooperation with resilient, capable and committed partners strengthens Europe as a whole.

Enlargement countries are increasingly contributing to addressing these common challenges. Cooperation with the EU has intensified in areas such as foreign and security policy, defence, border management, the fight against organised crime, cybersecurity, hybrid threats, energy security, critical infrastructure, crisis preparedness and management, and civil protection. Ukraine and Moldova, in particular, have developed significant experience in responding to sustained hybrid and security threats, providing lessons relevant to the Union’s own resilience and that of other enlargement countries. Ukraine is already contributing to European defence readiness through cooperation and knowledge sharing.

This security dimension complements the fundamentals of the accession process. Both dimensions reinforce and depend on each other. Democracy, the rule of law, fundamental rights, functioning democratic institutions, public administration reform and the economic criteria remain at the core of the accession process4 and determine the overall pace of negotiations. Strengthening these foundations is indispensable for building democratic and societal resilience.

1. Democracy, rule of law and fundamental rights

Progress on the fundamentals remains essential for every enlargement country. Credible reforms require not only legislative alignment but also effective implementation, independent institutions, a strong public administration and a sustained track record of results.

During the reporting period, substantial progress was recorded in several enlargement countries, particularly where accession-related reforms benefited from sustained political commitment and broad institutional cooperation. Montenegro and Albania continued to advance reforms linked to the fundamentals, with Montenegro notably meeting the closing benchmarks for the rule of law chapters (as assessed by the Commission) and Albania meeting the interim benchmarks under cluster 1. Moldova and Ukraine pursued major reforms despite significant external pressures and, in Ukraine’s case, wartime conditions. At the same time, progress remained uneven across the enlargement countries. Serious concerns persist in several countries. Democratic standards, fundamental rights and freedoms and the rule of law deteriorated further in Georgia and Türkiye.

The annual rule of law report involves Albania, Montenegro, North Macedonia and Serbia in the same preventive cycle as Member States based on objective and merit-based criteria. The exercise is complementary to the enlargement reports. It is also an element of gradual integration, and it supports reform efforts aiming to firmly and irreversibly anchor democracy and the rule of law in enlargement countries. Building on the participation of four enlargement countries, the Commission will progressively include further candidates as and when they become ready.

Democratic institutions and civil society

Stable and effective democratic institutions are central to the accession process. Democratic systems require effective checks and balances, strong parliamentary oversight, transparent and inclusive political dialogue and electoral processes in which citizens can exercise their choices freely.

Overall, electoral processes were peaceful, competitive and professionally conducted. It is important for all enlargement countries to ensure alignment with relevant EU acquis in this area, taking into account European and international democratic standards. To address longstanding electoral integrity concerns, Bosnia and Herzegovina’s October 2026 general elections introduced countrywide use of new election information and communication technologies. At the 25 October elections, which took place in an atmosphere of profound

4 Public procurement, statistics and financial control are also part of the fundamentals of the accession process.

4

polarisation, the Serbian voters have given the next government a strong mandate for reforms. The October 2025 municipal elections in Georgia were held under deeply compromised political and electoral conditions including intimidation andpressure on independent media and civil society.

Cross-institutional cooperation facilitated the adoption and implementation of EU-related reforms in Montenegro, Ukraine and Moldova. In Albania, the Constitutional Court’s active role in upholding institutional safeguards contributed to conducive conditions for reform. However, political polarisation, weaknesses in parliamentary oversight and excessive use of accelerated legislative procedures continue to affect the quality of democratic governance in some of the enlargement countries. Respect for both constitutional arrangements and implementation of decisions of constitutional courts remains essential. In Bosnia and Herzegovina and Kosovo, the functioning of the executive and legislature was hindered by political fragmentation. The dismantling of institutional safeguards continued in Georgia and Türkiye. Despite some progress in some countries, women remain under-represented in political leadership positions and continue to face gender-specific barriers to equal participation in political and public life

EU accession is most transformative where it is supported by broad political and societal ownership. Governments have primary responsibility for implementing reforms, but opposition parties, parliaments, local authorities, civil society, social partners, independent media and citizens all have an important role to play. Enlargement therefore requires a whole- of-society approach and sustained public engagement on the opportunities and responsibilities associated with EU membership. Young people have a vital role to play in shaping their countries’ European paths. This is also being supported by enhanced communication both in the enlargement countries and in the EU Member States.

An open, enabling and inclusive environment for civil society is an integral part of a functioning democracy. While the required legal and policy frameworks are broadly in place in most enlargement countries, their implementation remains uneven. Progress on some matters in Montenegro, Moldova, and Ukraine is not matched in other enlargement countries. Public consultations take place in most countries, but the mechanisms behind them have limited effectiveness. Civil society organisations and independent actors continue to face smear campaigns, strategic lawsuits and administrative obstacles in some countries.

In three enlargement countries, mounting challenges have been affecting civic space, effectively limiting civil society’s ability to operate freely and safely. In Serbia, civil society organisations have been subject to increasing pressure, attacks and intimidation. In Georgia, civil society operates in a repressive environment and is subject to restrictive legislation, deepening the chilling effect. In Türkiye, ongoing legal and administrative pressure from authorities and the disproportionately harsh implementation of national security laws stifles and shrinks civic space.

Public administration reform

Overall progress in implementing public administration reforms (PAR) remains uneven. Moldova, Montenegro and Ukraine have made good progress. Moldova relaunched the local administration reform. Montenegro adopted the Law on free access to information, the Law on local self-government, the Law on local civil servants, the Law on budget and fiscal responsibility and related secondary legislation on the Law on civil servants and state employees for the central civil service. Ukraine has further reinforced its strategic framework with the adoption of the PAR and the public financial management system strategies for 2026- 2030.

Although the strategic frameworks are broadly in place across all enlargement countries, major shortcomings persist. Political leadership and ownership of the reform agenda remain insufficient. Persistent weaknesses in linking strategic planning with medium-term budgetary frameworks continue to affect policy prioritisation and public expenditure planning. The continued politicisation of the civil service remains a critical challenge. Public consultation

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processes are still insufficiently institutionalised, with limited systematic follow-up and inadequate integration of stakeholder feedback into policymaking. The lack of systematic regulatory impact assessments in most countries continues to constrain evidence-based policymaking and the quality of legislative development.

All countries have put in place a broadly credible and relevant strategic framework for public financial management. However, progress in implementation remains insufficient, and structural weaknesses persist. This is particularly evident for budget transparency, the setting up and operationalising of independent fiscal oversight bodies and systems to ensure fiscal discipline and tax revenue performance. Structural weaknesses continued in public investment management, preparation of medium-term budgetary frameworks and a comprehensive fiscal risks monitoring. Public internal financial control systems require more effective internal audit functions and improved risk management.

Judiciary and the fight against corruption

Independent, impartial and effective judicial systems are indispensable for the rule of law, the protection of fundamental rights and a functioning market economy. They are essential for societal trust as well as for foreign investor confidence.

Several enlargement countries continued reforms aiming to strengthen judicial independence and accountability, including through vetting, legislative reforms and more transparent and merit-based appointment procedures. Montenegro, Moldova, and Albania continued reforms aiming to strengthen the functioning and accountability of their judicial systems. Montenegro adopted constitutional amendments, strengthening the independence of the Judicial and Prosecutorial Councils, fully in line with EU and Venice Commission recommendations. Albania completed the comprehensive vetting of judges and prosecutors. Ukraine advanced on the vetting and appointment of vetted candidates at high judiciary bodies and Constitutional Court levels. Judicial independence remains seriously weakened, especially in Türkiye and Georgia. In Serbia, the initial backsliding caused by legal amendments that removed some of the existing safeguards to protect prosecutorial autonomy and judicial independence was subsequently partly addressed.

However, political and other undue influence over judicial institutions is a concern in several countries. North Macedonia and Kosovo struggle with political or vested-interest interference with and influence over courts and prosecution services. Serbia is similarly affected, where undue pressure has significantly increased. In Bosnia and Herzegovina, the judiciary’s independence and impartiality need to be improved, and legislative reforms and integrity checks are key to rebuilding public trust in the justice system. The most severe situations are in Georgia and Türkiye.

Structural weaknesses, including unfilled vacancies, backlogs, lengthy proceedings and insufficient administrative capacity, continue to undermine the effectiveness of justice systems. Access to legal aid also remains limited. Legislative reforms therefore need to be accompanied by adequate resources, merit-based selection procedures, training, institutional capacity and a sustained track record of independent decision-making. This requires high political attention and leadership.

Corruption remains a serious challenge across the enlargement region and must be addressed as a matter of priority. A credible fight against corruption requires transparency, effective public procurement systems, independent media and an enabling environment for investigative journalism and civil society. The mainstreaming of anti-corruption policies and measures across the most vulnerable sectors remains an important priority. Several countries strengthened their legal and institutional frameworks and continued to develop track records on investigations and prosecutions. Montenegro, Ukraine, Moldova and Albania registered progress. In Montenegro, prosecutorial and law enforcement institutions’ effectiveness and coordination in the area of corruption continued to improve and the process to adopt two sets of amendments to the Constitution is ongoing. In Ukraine, anticorruption institutions continued

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to build up the track record on investigations, prosecutions and convictions in high-level anti- corruption cases, while certain priority legislative reforms to strengthen the fight against corruption remain outstanding. The risk of state capture risks remains salient, especially in Georgia, Bosnia and Herzegovina, Serbia and Türkiye.

Fundamental rights and freedom of expression

Legal frameworks for the protection of fundamental rights are generally in place across the enlargement countries, but implementation and enforcement remain uneven. The situation continued to deteriorate in Türkiye and Georgia. Across the region, the enforcement of human rights, including of European Court of Human Rights judgments and recommendations of international and European monitoring bodies needs to be improved, particularly in Türkiye and Georgia. National human rights institutions need more resources and greater independence. Improvements in child protection, gender equality and the rights of persons with disabilities were noted in Albania, Montenegro, Moldova and Ukraine. The rights of persons belonging to minorities continued to be generally upheld everywhere and were strengthened in Ukraine.

Montenegro and Moldova took steps to tackle ill-treatment of prisoners and made efforts to improve detention and prison conditions, but continued efforts are needed. In North Macedonia, and Türkiye, reform efforts have yet to lead to tangible results. Most countries need to respond more decisively to cases of discrimination and hate offences, in particular those targeting Roma, LGBTIQ+ persons, persons with disabilities, and minorities. This requires effective prevention, investigation, prosecution and access to remedies, alongside measures addressing the structural conditions that enable discrimination. Implementation of measures to improve gender equality is uneven. The continued incidence of gender-based violence requires increased resources for the prevention and for accessible, specialised support services for victims. The increase in anti-rights and anti-gender narratives is a challenge in several countries. In Türkiye, the recent wave of arrests and legal proceedings targeting LGBTIQ+ persons, activists, human rights associations and businesses has led to further stigmatisation and curtailed the exercise of their rights.

Efforts are still ongoing to align legislation and practice with the EU acquis and European standards on victims’ rights and procedural safeguards for suspects and accused persons. Montenegro is a good example of considerable progress in alignment in this area.

Freedom of expression, media freedom and media pluralism remain essential indicators of democratic resilience. Some positive developments were recorded in certain enlargement countries, but intimidation, threats and attacks against journalists, including strategic lawsuits against public participation, political influence over media, concentration of media ownership and weaknesses in the independence of regulatory authorities remain of concern in others. Montenegro has continued to progress in this area, further aligning with EU standards and implementing a zero-tolerance policy to intimidation and violence against journalists. Moldova adopted a new media law on transparency, including in relation to media ownership, consistent with the European Media Freedom Act5. Positive developments were also recorded in other countries, particularly Ukraine. Further efforts are needed to align legislation and practice with the EU acquis and European standards. The safety of journalists remains a concern in several countries and has further deteriorated in Serbia, Georgia and Türkiye. A credible track record of effective and systematic follow-up by law enforcement and judicial authorities is essential. Independent and pluralistic media are also increasingly important for strengthening societies’ resilience against foreign information manipulation and interference. In Serbia, a further erosion of academic freedom and the freedom of scientific research was noted, with authorities increasing pressure and interference on university students, and research institutes.

5 European Media Freedom Act

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2. Internal security, borders and migration

Effective cooperation on internal security protects citizens in both the Union and enlargement countries. Organised crime, trafficking in human beings, drug trafficking, migrant smuggling, money laundering, violent extremism, radicalisation, terrorism and cybercrime are inherently cross-border challenges and require coordinated responses and effective cooperation. In today’s security environment, the ability and commitment of enlargement countries to address internal security threats ranging from hybrid attacks to organised crime and terrorism, is essential.

Efforts to strengthen the fight against serious and organised crime delivered results. Montenegro and Albania’s specialised prosecution offices achieved results in investigating and prosecuting high-risk criminal networks. Ukraine, Moldova and Bosnia and Herzegovina each issued a new national Serious and Organised Crime Threat Assessment. Albania adopted new strategic frameworks to fight organised crime. Shortages in human resources and equipment remain an issue across enlargement countries, and integrity measures across all law enforcement agencies need to be strengthened.

Cooperation among enlargement countries, EU Member States and EU agencies continued to deepen. Several partners strengthened their specialised law enforcement and prosecution capacities and intensified their operational cooperation, including through EMPACT (the European Multidisciplinary Platform Against Criminal Threats). These efforts have contributed to the investigation and prosecution of organised criminal networks.

Further progress is nevertheless needed to consolidate track records of investigations, prosecutions, convictions and confiscation of criminal assets. Some enlargement countries have regularly used financial investigations and asset recovery, but a systematic follow-the- money approach should become standard practice. Capacity to investigate cybercrime, cryptocurrency-related crime and complex financial crime also needs to be strengthened further. Montenegro, Albania, Türkiye and Moldova have taken steps to strengthen their anti- money laundering and countering the financing of terrorism framework. Although money laundering is increasingly recognised as a stand-alone offence, prosecutions and convictions in such cases remain scarce. Serbia, Türkiye and Bosnia and Herzegovina have been recently assessed by the Financial Action Task Force (FATF) and Moneyval. These countries should prioritise implementing the Key Recommended Actions – or, in Bosnia and Herzegovina’s case, fully commit to its FATF action plan to address the identified strategic deficiencies that have led to its inclusion in the FATF list of jurisdictions under increased monitoring.

Drug trafficking remains the most common activity of organised criminal groups operating across enlargement countries. Drugs seizures have tended to increase, and it is essential that all enlargement countries ensure a timely destruction of any confiscated drugs. Albania, Montenegro and Moldova made further progress in aligning their legislation with the EU acquis on drugs, while additional efforts are needed in Bosnia and Herzegovina, Kosovo and North Macedonia. Albania, Bosnia and Herzegovina, North Macedonia and Serbia should also adopt a comprehensive national drugs strategy and action plan against drug trafficking. Ukraine should further align its legislative and institutional framework with the EU acquis on drugs.

Some good results were achieved in dismantling networks involved in trafficking in human beings. In Montenegro, the track record of prosecutions and convictions in this area continued to improve. Progress has been made in combating all forms of trafficking in human beings, particularly forced labour and forced begging. However, stronger mechanisms are needed for identifying, protecting, helping, compensating and reintegrating victims. Investigations into child sexual abuse and identification and support to victims also need to be strengthened.

Enlargement countries are implementing their national strategies, roadmaps, and action planson small arms and light weapons. Terrorism, violent extremism and radicalisation are particular security challenges. Enlargement countries continued to strengthen their counterterrorism and prevention frameworks. Cooperation with EU agencies and international

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partners also remained robust, and law enforcement capacities were generally effective. However, new challenges are emerging, including online radicalisation, terrorist content online, disinformation and the misuse of new technologies, including AI, and the growing influence of ethno-nationalism and political extremism.

Migration and border management remain areas of close cooperation, and continued to deliver results. Irregular border crossings from the Western Balkans to the EU have not increased, reflecting strengthened cooperation and border-management capacities. Cooperation with Frontex and implementation of the EU Action Plan for the Western Balkans contributed to these results. In 2025, the substantial decrease in the number of irregular arrivals to the EU from Türkiye that had been recorded in 2024 continued. The EU continued to support Türkiye in its significant efforts to host 2.3 million refugees, mainly from Syria.

Further alignment with the EU’s visa policy remains necessary, alongside strengthened asylum and return systems and preparations to implement European integrated border management and, ultimately, the Schengen acquis. Montenegro amended its visa policy to fully align with the EU list of visa-required third countries as of 31 October 2026 and North Macedonia achieved almost full alignment, but other partners, especially Bosnia and Herzegovina, Georgia, Kosovo, and Serbia, must accelerate their efforts. Pending their full alignment with the EU’s visa policy, other enlargement countries should ensure a rigorous screening of visa-exempt third-country nationals to prevent any security or illegal migration risk towards the EU. The investor citizenship scheme functioning in North Macedonia should be discontinued without delay. Serbia should put an end to the practice of granting citizenship under accelerated or simplified procedures to nationals of countries that pose illegal migration or security risks to the EU.

Asylum procedures should be further aligned with the EU acquis. This should include adequate procedures and protection for unaccompanied minors and vulnerable people.

Enlargement countries should also start aligning with the legislative instruments that are part of the Pact on Migration and Asylum6. It is crucial that all enlargement countries continue to strengthen their capacities to follow the principlesdefined in the European integrated border management, as well as those connected with a stronger Schengen governance. This includes strengthening capacities to implement the customs legislation in view of the progressive application of the amended Union Customs Code7.

The fight against migrant smuggling improved. All Western Balkan partners, Moldova and Ukraine continue to actively take part in the Global Alliance to Counter Migrant Smuggling. The countries should develop a comprehensive approach to labour migration that prevents irregular secondary movements to the EU.

Enlargement countries should take measures without delay to reduce the number of unfounded asylum applications from nationals of these countries in the EU. Countries should continue to implement the readmission agreements with the EU and build capacity for returns, in line with fundamental rights.

Security and resilience

Foreign information manipulation and interference, cyberattacks and other hybrid threats are increasingly targeting democratic institutions, elections, public trust and the accession process itself. Strengthening resilience against these threats is therefore both an accession priority and a shared European security interest.

Preparedness remains uneven across the enlargement region. Moldova and Ukraine have developed increasingly comprehensive approaches to fighting foreign interference, strategic communication, cybersecurity and electoral resilience in response to sustained hostile activity.

6 Pact on Migration and Asylum7 Regulation (EU) 2026/2108

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EU CSDP missions in Ukraine and in Moldova are supporting capacity building and providing advisory support to sustain those efforts. Other enlargement countries, such as Montenegro, have also strengthened institutional arrangements and cooperation with the EU.

Election integrity requires permanent preparedness rather than temporary measures limited to electoral periods. Independent institutions, pluralistic media, an informed public and an active civil society are central to this effort. Enlargement countries should therefore continue strengthening their capacity to detect, analyse and respond to foreign interference and disinformation while safeguarding freedom of expression and other fundamental rights.

The European Democracy Shield and the European Centre for Democratic Resilience provide additional opportunities to strengthen cooperation among Member States and enlargement countries. On 13 October 2026, Albania, Bosnia and Herzegovina, Kosovo, Moldova, Montenegro, North Macedonia, Serbia and Ukraine were associated with the European Centre for Democratic Resilience. Participation should support exchanges of expertise, operational cooperation and capacity-building, while being tied to clear commitments to democratic principles and resilience.

Cybersecurity, the protection of critical infrastructure, civil protection and preparedness are equally important. European energy, transport, digital and communications networks are increasingly interconnected, meaning vulnerabilities outside the Union can have direct cross-border consequences. Gradual alignment with EU standards, preparedness capacities and stronger crisis management across both natural and human-induced risks as well as closer operational cooperation can reduce these vulnerabilities and strengthen the resilience of shared networks and reinforce societal resilience.

3. Foreign, security and defence policy

Alignment with the EU’s common foreign and security policy (CFSP) is a strong signal of a candidate country’s strategic orientation. Full CFSP alignment, including implementation of EU sanctions is a key requirement for membership. This includes taking measures to prevent circumvention of EU sanctions. A number of enlargement countries benefit from capacity- building under the European Peace Facility.

Most enlargement countries maintained a full or high alignment rate with the CFSP during the reporting period. Albania, Bosnia and Herzegovina, Montenegro and North Macedonia continued to be fully aligned. Kosovo’s full alignment with the CFSP is reflected in the dedicated Chapter 31 of the annual report for the first time. Ukraine and Moldova maintained very high levels of alignment. By contrast, Serbia’s alignment remained low, while Georgia’s alignment declined further. While Türkiye increased the number of consultations and its cooperation with the EU on a number of regional and international security issues, it continued to maintain a very low alignment rate.

Beyond CFSP alignment, enlargement countries are increasingly contributing to the EU’s common security and defence policy (CSDP). They participate in EU crisis-management missions and operations, contribute to European security and benefit from closer cooperation through a range of instruments. Security and Defence Partnerships with several enlargement countries provide structural frameworks for enhancing security and defence cooperation across a wide range of areas.

Ukraine’s contribution is of particular significance. Cooperation between the EU and Ukraine on security and defence has deepened substantially8 since Russia’s full-scale invasion. The gradual and future full integration of Ukraine’s defence industrial capacity into the EU defence technological base can contribute to strengthening both Ukraine’s defence and Europe’s long- term defence readiness and preparedness, industrial capacity and technological innovation. Ukraine is increasingly associated to EU instruments and programmes enabling practical cooperation and joint projects, such as Security Action for Europe, the European Defence

8 The EU-Ukraine defence industrial partnership, and Drone Deal, adopted in July 2026.

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Fund, BraveTech EU and European Defence Industry Programme, and participates in European Defence Projects of Common Interest. The EU will continue to support Ukraine military needs through the defence window of the Ukraine Support Loan.

These developments show that enlargement countries are already contributing to European security. At the same time, deeper security and defence cooperation must remain anchored in and be aligned with the Union’s values, foreign policy objectives and accession requirements.

Upholding international law, including the Rome Statute of the International Criminal Court, is central to the Union’s values.

II. GROWING EUROPE – COMPETITIVENESS, INVESTMENT AND OPPORTUNITY

Europe’s prosperity depends on its ability to compete, innovate and create opportunities in a rapidly changing global economy. Enlargement contributes to Europe’s economic strength by gradually creating a larger, more integrated and more dynamic economic space, increasing EU’s weight on a global stage. Economic reforms, investment and gradual integration are bringing enlargement countries closer to the EU single market, European value chains and investment flows.

Evidence from previous rounds of enlargement underlines the scale of the opportunity: an International Monetary Fund (IMF)9 analysis revealed that GDP per capita in the countries that joined the EU in the 2000s was 34% higher after 10 years, and 47% higher after 15 years than on a modelled path without accession. The analysis also points to gains for existing Member States, while noting that its model covers them less comprehensively. These estimates illustrate the combined effects of reform, improved governance, market integration and investment, but they are not a forecast of the outcome for every enlargement country.

The economic potential is significant, but convergence remains incomplete. The IMF10 estimates the Western Balkans and Moldova could achieve GDP-per-capita gains of around 30-35% over 10 years through reforms, deeper market integration and EU investment. The overall macroeconomic picture is mixed. In 2025, economic growth in many enlargement countries was weaker than expected. In the Western Balkans, annual growth slowed to 2.6%, down from 3.6% in 2024, mainly because of a sharp slowdown in Serbia, the region’s largest economy. North Macedonia was the only Western Balkan economy where growth accelerated. Growth ranged from 2% in Serbia to 3.7% in Albania. In 2025, Moldova’s economy grew by 2.4%, supported by a recovery in agriculture and higher IT exports. However, this growth did not carry into 2026 as the country’s vulnerability to external energy shocks, repeated energy and environmental emergencies, and a weak export base, continued to weigh on economic growth. In Türkiye, growth reached 3.6%, driven mainly by strong domestic demand, and was higher than in 2024. Growth remained strong in Georgia at 7.5%. In Ukraine, growth slowed to 1.8%, largely because of continued Russian attacks on energy infrastructure. The Black Sea blockade has further disrupted trade routes, leading to loss of domestic revenue. Inflation remained persistent in most economies.

Current account balances deteriorated in most countries in 2025. Exports were weak amid global headwinds while strong domestic demand kept import levels high. Attracting foreign direct investment into tradable sectors remains difficult as investment often goes to non- tradable sectors such as real estate. In addition, Russia’s war against Ukraine heavily weighs on the business environment not only in Ukraine but also in neighbouring Moldova, where heightened geopolitical uncertainty and elevated risk perceptions are adversely affecting investor sentiment and FDI inflows.

Banking sectors remained stable in 2025, and credit growth generally accelerated, supported in several countries by stronger household borrowing for housing and consumer spending.

9 IMF report - Bridging Borders: Making the Most of EU Accession 10 See footnote 9

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Across the enlargement countries, banks continued to show solid capital adequacy ratios, ample liquidity and low non-performing loan ratios.

Overall, general government balances deteriorated in 2025 compared with the previous year, although most countries performed better than their budget targets. Revenue collection has increased. At the same time, expenditure was often lower than planned, mainly because capital spending was under-executed. As a result, fiscal deficits were smaller than expected in several countries. Common fiscal challenges across the countries include narrow revenue bases, weaknesses in public investment management, gaps in fiscal governance and, in some cases, moderate to high public debt.

All economies face similar structural barriers to higher productivity and sustainable long-term growth. In most of them, corruption, legal uncertainty and slow court procedures continue to undermine the business environment. Weak regulatory and institutional frameworks hold back private-sector development, and insufficient investment in research and innovation further constrains competitiveness and productivity growth. Large and inefficient state-owned enterprises distort competition and weigh on growth. A large informal sector further weakens competition and reduces tax revenue, limiting the resources available for investment in education, culture, healthcare and infrastructure. Meanwhile, the green transition has become more urgent as it is both a challenge and an opportunity for sustainable growth. Labour market outcomes have improved in many economies, with employment rising, but participation remains low overall, especially among women, and unemployment is still relatively high, and capacity on social dialogue remains weak. Discrimination and inequalities pose structural obstacles to labour market participation and prevent the economies from making full use of available human capital.

The EU supports economic transformation through reforms, investment and gradual integration. The Growth Plans for the Western Balkans and Moldova and the Ukraine Facility link substantial financial support to reforms that prepare countries for EU membership. In parallel, gradual integration can open selected areas of EU policies and the single market before accession subject to certain conditions, strengthening convergence and the Union’s own preparedness for a larger membership.

1. Accelerating economic and social convergence through reforms and investment

Economic convergence is essential for enlargement to be a success. Stronger economies and functioning market institutions enable enlargement countries to compete effectively within the single market and contribute to the Union’s prosperity after accession. The IMF analysis of previous rounds of enlargement attributes roughly two thirds of estimated income gains to higher productivity. It identifies mutually reinforcing sources of growth, namely better governance, rule of law and regulation, single market integration and EU funding and investment.

Economic convergence needs to go hand in hand with social convergence, based on the principles of the EU Pillar of Social Rights and the EU social acquis. To achieve this, it is crucial that all enlargement countries progress on developing well-functioning labour market structures and institutions, effective social protection systems and strong social dialogue.

The Growth Plans and their respective facilities - the Reform and Growth Facility for the Western Balkans11, the Reform and Growth Facility for the Republic of Moldova12 and the Ukraine Facility13 strengthen the link between reforms, investment and economic integration. They support structural reforms in areas including the business environment, public administration, energy, digitalisation, human capital and the green transition, while mobilising public and private investment. Improved governance and the rule of law reduce uncertainty for investors; stronger links to the single market support scale and participation in

11 Regulation (EU) 2024/1449 12 Regulation (EU) 2025/535 13 Regulation (EU) 2024/792

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European value chains; and EU-backed investment can help close infrastructure gaps and draw in private capital.

In the Western Balkans, all partners adopted Reform Agendas, and financial support under the Reform and Growth Facility for the Western Balkans was linked to the delivery of agreed reform steps. By September 2026, 673.6 million have been released out of the 6 billion available under the Facility following the completion of 90 out of 731 reform steps. Implementation needs to accelerate, with particular attention to reforms that improve economic governance, strengthen the rule of law and the business environment, and support convergence with the single market14.

The EU rolled out WiFi4WB, preparing the installation of free Wi-Fi hotspots in around 500 municipalities across the region to foster digital connectivity and inclusion. The first regional EU-Western Balkans Investment Forum mobilised investors around reform and investment priorities. These measures complemented ongoing pre-accession assistance under the Instrument for Pre-accession Assistance (IPA III) and participation in EU programmes such as Horizon Europe, Erasmus+ and Creative Europe.

The Western Balkans region has the ambition to create a Common Regional Market (CRM) that aims to ensure freedom of movement for people, services, goods and capital. The CRM facilitates movement, recognising professional and academic qualifications, digitalising procedures and strengthening customs cooperation. Full implementation of existing commitments remains crucial. A well-functioning regional market based on EU rules can generate economic benefits for the region while helping businesses prepare for competition in the single market.

The Reform and Growth Facility for Moldova, amounting to EUR 1.9 billion, is supporting an ambitious reform and investment agenda and closer economic integration with the Union. The amount is composed of EUR 1.63 billion that are conditional to the implementation of the Reform Agenda and unconditional complementary support worth EUR 250 million for 2025- 2027. Moldova continued implementing its Reform Agenda and benefited from a gradual participation in areas of the single market and EU programmes. By October 2026, EUR 660.8 million out of EUR 1.63 billion in grants and loans available under the Facility had been released following the completion of 46 out of 48 reform steps scheduled until June 2026 and overall 153 steps for 2025-2027. Sustained implementation while stepping up the implementation of public investments will be essential to turn financial support into long-lasting economic convergence and increased resilience15.

The Ukraine Facility provides over EUR 50 billion of stable financing (across the three Pillars), in grants and loans, to support Ukraine's recovery, reconstruction, and modernisation for the period from 2024 to 2027. The amount of Pillar 1 of the Ukraine Facility received an increase of EUR 8.4 billion in financing for 2026 following the adoption of the Ukraine Support Loan16. A total of EUR 32.5 billion has been disbursed so far under Pillar 1. The Ukraine Plan continued to support reforms necessary for accession, reconstruction and private-sector development in the country. Despite the exceptional circumstances created by Russia’s war of aggression, Ukraine continued to adopt reforms that aim to strengthen economic governance and support its gradual integration into the EU economy. Reconstruction and accession preparations should continue to reinforce each other, ensuring that investment contributes to a competitive, sustainable economy that is increasingly integrated into European markets17.

14 More information - Reform and Growth Facility for the Western Balkans - Enlargement and Eastern Neighbourhood 15 More information - Reform and Growth Facility for Moldova - Enlargement and Eastern Neighbourhood 16 The budget support under the Ukraine Support Loan is also channelled through macro-financial assistance. 17 More information - Ukraine Facility - Enlargement and Eastern Neighbourhood

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EU-backed investment platforms, including the Ukraine Recovery Conference, the EU- Moldova Investment Conference and the EU-Western Balkans Investment Forum, have helped connect reform and investment priorities with businesses, international financial institutions and investors. Mobilising significantly more private capital will be needed to close the investment and productivity gaps with the EU.

Improving the investment climate remains critical. Legal uncertainty, corruption, weaknesses in public administration and judicial systems, inefficient state-owned enterprises and large informal sectors continue to discourage productive investment in several enlargement economies. Tackling these structural constraints is essential both for economic convergence and for successful participation in the single market.

2. Integrating into the single market before accession

Gradual integration is already delivering tangible benefits for citizens and businesses while supporting preparations for membership. It is part of a wider approach to enlargement preparedness: as candidates gradually align with EU rules and implement them, the Union can anticipate the implications of a larger membership across its policies and instruments.

Progress during the reporting period was particularly visible in telecommunications, payments, customs, taxation, digital services, energy and industrial products. These initiatives combine concrete benefits with regulatory convergence. Participation is conditional on alignment with relevant EU rules, effective implementation and enforcement, and the capacity to safeguard the functioning of the single market.

The extension of the EU’s Roam Like at Home area to Ukraine and Moldova since January 2026 has removed roaming charges and brought immediate benefits to citizens and businesses. Work is advancing on extending the scheme to the Western Balkans.

Integration into the Single Euro Payments Area (SEPA) is another major example of this gradual approach. Albania, Moldova, Montenegro, North Macedonia and Serbia have entered the geographical scope of SEPA schemes following a decision of the European Payments Council, with payment service providers gradually joining its schemes. This facilitates faster and less costly euro payments and requires alignment with major EU financial-sector legislation, including anti-money laundering and counterterrorist financing requirements. Bosnia and Herzegovina, Kosovo and Ukraine should continue, complete and implement the reforms required to meet the conditions for integration into SEPA.

Customs cooperation is similarly crucial for facilitating trade and protecting the Union’s financial and security interests. Enlargement countries continued to align customs systems, strengthen risk management and gradually participate in European customs arrangements, including the Common Transit Convention (CTC). While current CTC members successfully upgraded to the latest version of the New Computerised Transit System (NCTS), Albania and Bosnia and Herzegovina made further progress towards joining CTC in the next years. The integration of enlargement countries in CTC brings significant benefits, such as reduced customs controls and faster clearance times, and strengthens the countries’ capacity to prevent and detect non-compliant trade flows. The Commission calls on Serbia to lift its veto to Kosovo’s application to become an observer to the CTC. Coordination and adjustment of tax systems is necessary for the good functioning of the single market and to avoid distortion of competition. Further digitalisation and interoperability of customs systems will be essential for accession preparedness. Energy-market integration is progressing in parallel, building on the Energy Community Treaty as the main framework for the integration of enlargement countries’ energy markets with the EU. Closer integration of enlargement countries into European electricity and energy markets strengthens energy security, facilitates investment in renewable energy and infrastructure and reduces strategic dependencies. Ukraine and Moldova have made particularly significant progress in integrating their energy systems into the EU and in reducing dependence on Russian energy.

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3. Connecting Europe

A larger Union will require stronger physical, energy and digital connections. Connectivity is therefore both an economic opportunity and a requirement for enlargement. Regional connectivity remained high on the agenda through cooperation in the areas of transport, energy and digital technologies in the Western Balkans, Türkiye and the Black Sea region.

The EU continued investing in transport links that connect enlargement countries with the single market and with each other. In the Western Balkans, Moldova and Ukraine, the Transport Community supported regulatory alignment and measures to facilitate transport across the region and with neighbouring Member States. Green Lanes and work on the busiest border crossing points aim to reduce waiting times, facilitate trade and boost the resilience of transport corridors.

The EU-Ukraine Solidarity Lanes continued to provide essential routes for Ukraine’s exports and imports and strengthened transport connections between Ukraine, Moldova and the Union. Their importance has increased following massive attacks by Russia on Ukraine’s ports and land infrastructure since this summer, which have had a negative impact on freedom of navigation, with global consequences. Enhancing the cooperation on the Danube and Black Sea corridors is critical not only for Ukraine, but also for European trade, and economic resilience, as well as global food security.

Connectivity has an increasingly significant geopolitical dimension. The European Transport Corridors provide the long-term strategic transport framework for strengthening connectivity, resilience and links to neighbouring countries, including the Baltic Sea - Black Sea - Aegean Sea Corridor. Under the connectivity agenda launched as part of the EU Black Sea strategy, the EU and regional partners are strengthening transport, energy, digital and trade links between Europe, the Black Sea region, the South Caucasus and Central Asia. The Trans- Caspian Transport Corridor creates opportunities to diversify trade routes and strengthen Europe’s connections with Central Asia and can reduce vulnerabilities from concentrated or insecure transport routes. In her 2026 State of the Union address, President von der Leyen announced an ambition to mobilise up to EUR 12 billion in public and private investment through the Global Gateway for the Middle Corridor and a Regional Connectivity Summit.

Transport infrastructure should increasingly be developed with both civilian and security requirements in mind. Improving cross-border infrastructure, interoperability and transport capacity can support trade and mobility and contribute, where relevant, to military mobility and wider European preparedness. The development of transport infrastructure should go hand in hand with the facilitation of customs procedures and digitalised transit.

Digital connectivity is equally important. Enlargement countries continue to develop digital public services and digital identity frameworks aligned with EU standards. European Digital Innovation Hubs and cooperation on high-performance computing and AI are helping businesses and public administrations develop the capabilities needed for the digital transition. The European Innovation and Technology Institute is present in the Western Balkans and Ukraine through Community Hubs. More hubs will open in Moldova and Kosovo by end-2026.

Further investment will be required to close infrastructure gaps, improve cross-border connections and ensure that transport, energy and digital networks are resilient, secure and interoperable with those of the Union.

4. Strengthening European value chains and economic security

Enlargement can contribute to the Union’s competitiveness and economic security by diversifying supply and value chains, building common resilience through mutual dependencies among partners, expanding industrial capacity and integrating complementary resources and capabilities into critical European value chains.

Work is continuing to integrate enlargement countries more closely into EU industrial supply chains. Regulatory alignment, agreements on conformity assessment and closer industrial

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cooperation can lower barriers for businesses and ensure that products meet EU standards. The process leading to start negotiations of an agreement on conformity assessment and acceptance of industrial products with Ukraine is well on track. Moldova is implementing an action plan to this effect, and preparatory work started with Serbia. The Commission has proposed a framework for the gradual integration of the Western Balkans, Ukraine and Moldova into strategic industrial sectors. This will facilitate the complete integration of their industries into European value chains ahead of full EU accession. Bilateral work on this has started with Kosovo, Montenegro, North Macedonia and Serbia. Efforts to improve the functioning of the EU-Turkey Customs Union should also continue.

The economic potential extends beyond market size. Enlargement countries possess industrial capacity, skilled workforces, energy resources, critical raw materials and increasingly dynamic technology sectors that can complement the Union’s economic base. Better integration can help diversify supply chains and reduce excessive dependencies in strategically important sectors, as well as contribute to food security.

Ukraine has particular potential to contribute to European industrial resilience through its capabilities in areas such as critical raw materials, energy, agriculture, digital technologies and defence production. As Ukraine rebuilds, its reconstruction process can help modernise infrastructure and industrial capacity that is more closely integrated into European value chains and aligned with European standards.

The Western Balkans are already closely integrated into EU manufacturing and supply chains. Further reforms, infrastructure investment and regulatory convergence can expand the region’s role in European production networks and attract more investment into higher- value-added sectors.

Türkiye’s diversified industrial base and deep integration into European value chains through the EU-Turkey Customs Union are important for European supply-chain resilience. Addressing existing trade irritants and improving implementation of the Customs Union would help this relationship function more effectively. In July 2026, the EU-Turkey Customs Cooperation Committee adopted an agreement to mutually recognise the respective authorised economic operator programmes.

The defence industrial dimension is also becoming increasingly relevant. Pursuant to the conditions set out in the different programmes and initiatives, starting with the security and defence interests of the Union and its Member States, closer cooperation with enlargement countries, particularly with Ukraine, can contribute to strengthening European defence production, technological innovation and supply-chain resilience.

5. Investing in the green and digital transitions

Successful enlargement requires economies that can integrate in a climate-neutral and increasingly digital European economy.

The green transition is both a significant investment challenge and a major opportunity. Many enlargement economies are more carbon-intensive than the EU and require substantial investments to align with the EU’s climate, energy and environmental objectives and standards, including in renewable energy, grids, energy efficiency, environmental protection infrastructure, clean transportation, clean industrial technologies, waste and water management, circularity, and climate resilient infrastructure. Accelerating decarbonisation and tackling pollution while ensuring energy security and clean and affordable energy will be essential for their long-term competitiveness and successful integration into the single market. Enlargement countries should also harness the benefits of introducing carbon pricing measures based on EU requirements, that can help generate revenues to finance the transition. Closer energy integration with the EU can support this transformation. Investment in electricity interconnections, circular economy, renewable energy and energy efficiency can reduce vulnerabilities, strengthen regional energy security and create new opportunities for European businesses and investors.

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Protecting and restoring the natural capital of the enlargement countries and promoting nature- based solutions will help the countries accelerate their decarbonisation efforts and gain competitive advantages stemming from the green transition.

The digital transition offers similar opportunities. Enlargement countries are gradually aligning with the EU digital acquis and developing digital infrastructure, public services and innovation ecosystems. Cooperation on AI, high-performance computing, digital identity and cybersecurity can accelerate productivity growth and contribute to Europe’s technological capacity. This is the case with the greater AI capacity available following the set-up of three AI factory antennas in Moldova, North Macedonia and Serbia.

These opportunities need to be accompanied by investment in skills. Labour shortages, low labour market participation and mismatches between education systems and employers’ needs remain constraints in several enlargement economies. Education, vocational training and skills policies should therefore form an integral part of economic convergence.

By combining reforms, investment and gradual integration, enlargement can help create a larger and more competitive European economic space. Unlocking this potential requires sustained reforms in the enlargement countries, effective implementation of EU-supported investment and continued progress on regulatory alignment. As integration deepens, the benefits should be felt more on both sides: through greater opportunities and convergence in enlargement countries and through stronger markets, value chains, connectivity and resilience for the Union as a whole.

A common framework for gradual integration

The ‘Preparing for a wider Union’ Communication18 expands and deepens the concept of gradual integration as an integral part of efforts to boost growth, competitiveness and security, and an essential part of the accession process.

In recent years, the EU’s gradual integration offer has been developed through a bottom-up approach. This was based on greater access to: (i) EU programmes; (ii) greater support from and access to EU agencies; (iii) implementation of single market integration and ad hoc measures; (iv) development of connectivity into EU transport, energy and digital networks; and (v) access to expert groups and committees. Significant progress has been made in recent years in all these strands. However, implementation of some measures remains uneven and fragmented across enlargement partners and among the different components of gradual integration. Furthermore, the work has not systematically focused on or being clearly linked to progress in accession preparations.

Therefore, the Commission is now putting forward a more coherent and structured approach to gradual integration with follow-up on the five strands of work, building on the work done so far. The offer will be made to every partner in comparably advanced accession situation. The mapping in the annex to this Communication shows how each part of this work will be directly anchored in – and related to – the dedicated enlargement chapter.

Gradual integration should expand in a structured manner where it brings clear benefits for enlargement partners and the EU, supports accession preparations and serves shared strategic priorities. Further opportunities exist in the areas of digital identity, transport, public procurement, industrial goods, energy, and emerging technologies, where appropriate. The scope and timing of participation and the associated support from the EU budget should reflect each country’s progress and capacity. Access must remain conditional and reversible based on the country’s alignment with the relevant acquis, effective implementation, enforcement, and respect for the principles underpinning the accession process. Enlargement countries will only be able to benefit from gradual integration in individual sectors if they meet the relevant

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cross-cutting conditions. Gradual integration does not confer the rights of EU membership or change the merit-based accession process.

At the same time, closer economic integration in a growing number of sectors and policies requires more stringent conditions. Enlargement countries need to strengthen foreign investment screening, export controls, cybersecurity, the protection of critical infrastructure and measures against sanctions circumvention and economic coercion, gradually aligning with the Union’s economic security framework. Therefore, access to gradual integration should be subject to strategic alignment which is part of the EU acquis in chapter 31 “Common Foreign and Security Policy”, and economic security requirements above, which are part of the EU acquis in chapter 30 “‘External relations”’, chapter 10 “Digital transformation and media” and chapter 15 “Energy”. Current conditions for participating in programmes and activities, as set out in the acts establishing them, will have to be met as well.

Launching dialogues on gradual integration with the enlargement partners in the next six months will give the opportunity to take stock of all the existing gradual integration measures and their financing. It will also help to bridge gaps, and, where possible, to provide a more tailor-made offer suited to the specific situation of each enlargement country.

These dialogues will also create the opportunity for the Commission to assess the conditionality linked to the gradual integration offer – CFSP alignment, rule of law, progress on the enlargement process and economic security – as assessed in the annual Enlargement package. This could form both a condition to access gradual integration and the criteria for reversibility if the conditionality ceases to be respected. This is in line with the conditionality already present in currently applicable legal bases, such as the relevant association agreement and the agreement related to financial assistance. Dedicated support under the proposed Global Europe instrument should finance the gradual integration needs identified through the dialogues. It would support the investments, administrative capacity, regulatory implementation and information systems required for effective participation in Union policies and programmes. National plans should identify these needs and sequence financing with the reforms and operational preparations on which participation depends.

As gradual integration expands, the Union should also ensure that new policy initiatives do not unintentionally create barriers that undermine accession-driven convergence. To mitigate this, the Commission will systematically assess the enlargement dimension in other policy initiatives. And, where appropriate, the Commission will support the participation of enlargement countries that are actively converging with the relevant EU acquis and meet the applicable cross-cutting political conditionalities or provide for adapted treatment. Any such arrangements will remain sector-specific, conditional and reversible and will not confer the rights of membership. As announced in the ‘Preparing for a wider Union’ Communication, consideration should be given to how candidate countries’ involvement could deepen further following the signature of accession treaties, so they could already participate in relevant parts of the single market. The Commission will examine structured political participation in relevant Commission activities, in full respect of the Treaties, the Commission’s institutional autonomy and the principle of collegiality.

III. BUILDING TRUST – GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION

Lasting stability depends on trust, cooperation and reconciliation. The enlargement process has long been a catalyst for regional cooperation and remains one of the EU’s most effective instruments for promoting stability across the continent. By encouraging dialogue, supporting reconciliation and fostering practical cooperation, enlargement can help overcome historical divisions and build the foundations for a shared European future.

Good neighbourly relations and regional cooperation are an essential part of the Stabilisation and Association process and the accession process. Unresolved bilateral disputes, tensions between neighbours, and questions stemming from past conflicts can

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undermine regional stability and impede progress on membership. Enlargement countries are therefore expected to address outstanding issues constructively and in good faith, in line with international law and established agreements.

At the same time, bilateral issues should be addressed in a manner that supports the accession process. Sustained political dialogue, implementation of existing agreements and a commitment to good neighbourly relations are essential for building the trust required for a larger and more united Union.

Western Balkans: reconciliation and good neighbourly relations

In the Western Balkans, overcoming the legacy of the conflicts of the 1990s remains a major part of European integration. Stronger efforts are needed to address outstanding bilateral issues, including border questions, missing persons, accountability for war crimes and succession issues arising from the dissolution of the former Yugoslavia. Reconciliation must be based on facts and respect for victims, recognition of their rights and needs, and their meaningful participation in transitional justice processes.

Political leaders have a particular responsibility to contribute to reconciliation and avoid rhetoric or action that deepen divisions. Historical revisionism, denial or glorification of war crimes and inflammatory rhetoric are incompatible with the values underpinning the accession process and undermine trust between societies.

Existing bilateral agreements need to be implemented in good faith. This includes the Prespa Agreement between Greece and North Macedonia and the Treaty of Friendship, Good Neighbourliness and Cooperation between Bulgaria and North Macedonia. Their implementation remains crucial for regional stability, mutual trust and progress on the European path.

Regional cooperation should continue to complement these efforts. Practical cooperation on trade, connectivity, transport, energy, environment, security, research and innovation and cross-border challenges creates mutual benefits and strengthens relations between societies. Regional initiatives should remain inclusive, contribute to EU integration and be based on EU rules and standards.

Normalisation of relations between Kosovo and Serbia

For both Kosovo and Serbia, progress on their respective European paths remains contingent on progress in the normalisation of their relations.

Implementation of the Agreement on the Path to Normalisation and its Implementation Annex remains insufficient. Both parties need to engage constructively in the EU-facilitated dialogue and implement their respective obligations without further delay.

Normalisation is not only a requirement of the European path. It is essential for the security, stability and economic development of both societies and of the wider region. The lack of progress carries political and economic costs and risks leaving both sides behind at a time when the enlargement process has regained momentum.

The EU will continue to facilitate the dialogue towards comprehensive normalisation of relations between Kosovo and Serbia and support implementation of the agreements reached. Despite the readiness expressed by the HR/VP to convene a High-Level Dialogue meeting, political constraints have so far prevented such a meeting. Both parties bear responsibility for creating the political conditions required to achieve tangible and sustainable progress and to avoid any unilateral and uncoordinated actions, inflammatory rhetoric and measures that undermine trust.

Türkiye

Re-engagement between Türkiye and Greece continued and Türkiye did not engage in any unauthorised drilling activity in the Eastern Mediterranean during the reporting period. Yet the unresolved issue over the continental shelf and the exclusive economic zones continued to

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strain bilateral relations, marked most recently by the Libyan House of Representatives ratifying on 20 October the so called Libyan-Turkish Memorandum of Understanding (MoU) on the delimitation of maritime jurisdictions in the Mediterranean, which triggered a strong EU reaction at the highest level declaring the MoU as null and void. Moreover, a higher number of violations of Greek airspace, including flights over Greek islands and of Greek territorial waters were reported. Türkiye is expected to make an unequivocal commitment to good neighbourly relations, international agreements and the peaceful settlement of disputes in accordance with the UN Charter. Türkiye must avoid threats and actions that damage good neighbourly relations; normalise its relations with the Republic of Cyprus; and respect the sovereignty of all EU Member States over their territorial sea and airspace as well as all their sovereign rights. Türkiye continued to refuse to recognise and cooperate with the Republic of Cyprus, including on security related issues. Türkiye did not fulfil its obligation to ensure the full and non-discriminatory implementation of the Additional Protocol to the Association Agreement.

The EU attaches particular importance to resuming and progressing on the Cyprus settlement talks to further improve EU-Türkiye cooperation19. The EU remains fully committed to a comprehensive settlement within the UN framework, on the basis of a bi- communal, bi-zonal federation with political equality, in accordance with the relevant UN Security Council resolutions and in line with the EU acquis and the principles on which the Union is founded. The EU has confirmed its readiness to play an active role in supporting all stages of the UN-led process, with all the appropriate means at its disposal. In July 2026, the Commission appointed Executive Vice-President Raffaele Fitto as the Commission’s Special Representative for Cyprus. Türkiye is expected to actively support efforts on a comprehensive settlement and to fulfil its obligations towards all Member States, including the Republic of Cyprus.

Across the enlargement region, the underlying principle is the same: European integration requires cooperation, trust and a commitment to resolving disputes peacefully. Good neighbourly relations are not an additional requirement alongside accession reforms; they are part of a country’s ability to assume the responsibilities of EU membership.

IV. DELIVERING ENLARGEMENT – PROGRESS, REFORM AND RESULTS

The enlargement process is delivering. Since October 2025, 16 intergovernmental conferences took place. Montenegro closed 14 chapters reaching a total of 21 overall. Albania saw all its chapters opened and the first four closed after meeting the interim benchmarks for rule of law requirements in June. Ukraine and Moldova opened four clusters each, building up on thorough preparatory work ahead of the formal launch of negotiations in June.

The reporting period demonstrated that countries that sustain reforms and meet the required conditions can advance towards membership, but progress remained uneven in others. Several enlargement countries reached significant milestones, while others progressed more slowly or stalled. In some cases, countries moved further away from the requirements of EU membership.

These differences reflect the merit-based nature of the accession process. Each country advances according to its own progress in meeting the set criteria. The fundamentals remain central and determine the overall pace of accession negotiations. There are no shortcuts to membership, but sustained reforms produce tangible results.

The renewed momentum behind enlargement creates an opportunity for countries that are ready to advance. Seizing this opportunity depends primarily on their capacity and political determination to implement reforms, meet outstanding requirements and build the broad societal support required for EU membership.

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Preparing the Union for enlargement

Successful enlargement requires preparedness on both sides. Readiness must be built throughout the process. Candidate countries must be able to apply the EU acquis, participate effectively in the Union’s institutions and assume the rights and obligations of membership from the moment of accession. At the same time, the Union must remain capable of taking decisions, financing its policies and delivering on its priorities with a larger membership. Progress on one side should inform practical preparations on the other.

Work on pre-enlargement policy reviews continued during the reporting period. The reviews show that most Union policies can accommodate a larger membership, with targeted adaptations where needed. Enlargement preparedness should become an integral part of Union policymaking throughout the accession process. This means: (i) anticipating enlargement across policies, legislation and financial instruments; (ii) making more systematic use of gradual integration to support reform and convergence; and (iii) ensuring that the Union’s governance and financial framework evolve as negotiations advance. This approach will support a merit-based accession process.

The Union’s capacity to act is equally important. Work with Member States and the other institutions on decision-making and institutional arrangements needs to advance while negotiations are under way. As outlined in the Communication ‘Preparing for a Wider Union20’, future accession treaties should also contain effective and proportionate safeguards to ensure that key commitments made during negotiations continue to be respected after membership. These preparations give practical assurance that enlargement will strengthen the Union’s ability to act and protect its interests.

The countries most advanced in the process have declared target dates for closing accession negotiations. This demonstrates their ambition, and the Commission is committed to supporting them in meeting EU membership requirements, as part of an accession process based on the own-merits principle. Roadmaps for the most advanced negotiating countries – Montenegro, Albania, Moldova and Ukraine – are presented in annex to this Communication. The roadmaps will give both the candidate countries and the Council a clearer framework for the next steps, thus helping to organise the next stages of preparation in a more structured and transparent manner. This reflects the ambition of the revised Enlargement methodology to make the process more predictable and manageable by setting out clearer priorities, sequencing reforms and negotiating steps in a more orderly way, while also improving monitoring of progress. The Commission will update the roadmaps as progress and challenges evolve, and depending on the candidates’ progress, the Commission can in time draw them up for additional negotiating countries.

Until the closure of negotiations with Montenegro, which could be achieved in December 2026, the priority will be toagree on the financial package, on the institutional arrangements, including the necessary safeguards, and on closing all remaining chapters, for which the closing benchmarks have been met. Following the closure of negotiations, and until EU membership, the Commission will put in place a monitoring mechanism to ensure that all outstanding reforms are completed by the time of accession and that the commitments made during negotiations are maintained and consolidated further, as relevant. The 2026 enlargement report on Montenegro could be the last enlargement report prepared for the country and be succeeded from next year by monitoring reports. An information and consultation procedure will be set up to ensure Montenegro is informed about changes to the acquis between signature and accession. The Commission proposes that appropriate information arrangements be put in place in the Council and in the Commission already after the final intergovernmental conference, ahead of signature of the accession treaty. Such arrangements would aim to ensure that Montenegro is kept adequately informed of proposals, communications, recommendations or initiatives.

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The rigorous accession process aims to ensure that countries joining the EU meet all their membership obligations on accession. The strengthened approach to safeguards will be applied for the first time in Montenegro’s Accession Treaty. Safeguard clauses are temporary provisions designed to tackle, without delay, any shortcomings that may arise from the accession of the new Member State and to ensure that negotiation commitments are upheld after accession. Including robust, effective and proportionate safeguard clauses into the accession framework mitigates potential risks and sets a precedent for future candidates, balancing incentives with accountability. The core cross-cutting parts of the Montenegro Accession Treaty will serve as a model for institutional aspects and safeguards in future accession treaties.

Preparing the Union also means strengthening public understanding and support for enlargement. Member States, EU institutions and enlargement countries share the responsibility for communicating transparently about the implications, opportunities and challenges of future accessions. A credible enlargement policy requires public confidence that new members will be ready to assume their obligations and that the Union itself will be ready to welcome them.

Maintaining a credible and merit-based process

The renewed momentum behind enlargement must be matched by delivery. The EU will continue to support enlargement countries through political engagement, technical assistance, investment and gradual integration. In return, progress on membership requires sustained implementation of reforms and respect for the values, principles and obligations on which the Union is founded.

Indicative reform ambitions or target dates can help organise work and maintain political momentum, but they cannot replace fulfilling accession conditions. The pace of each country’s progress will continue to depend on its own merits and its capacity to meet all memberships requirements.

The enlargement process is both demanding and achievable. The progress made by the most advanced candidates shows that reforms lead to transformative results. The responsibility now lies with each enlargement country to make full use of the opportunities available, while the Union advances its own preparations for a larger and stronger Europe.

V. CONCLUSIONS AND RECOMMENDATIONS

I.

For the first time since 2011, when the EU closed accession negotiations with Croatia, the EU is in a position to soon close accession negotiations with another candidate country, Montenegro. This is testament to Montenegro’s sustained efforts to advance on the European path and implement the reforms needed to turn EU membership into reality. It also shows that the enlargement process delivers results when the necessary reforms are undertaken.

EU enlargement is delivering. It is advancing more than at any point in time in the past fifteen years. This is reflected in the record high number of intergovernmental conferences held in the accession negotiations with Montenegro, Albania, Moldova and Ukraine. However, progress in the other enlargement partners has often been slow or non-existent.

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The fundamentals of the accession process remain decisive. Democracy, the rule of law, fundamental rights, functioning democratic institutions, effective public administrations and the economic criteria are indispensable for membership. They continue to determine the overall pace of accession negotiations. Once adopted, reforms need to produce sustainable results and credible track records.

Security and resilience has become an increasingly important dimension of accession process. Alignment with the EU’s common foreign and security policy, including with EU restrictive measures is a key requirement and a signal of strategic orientation in the current geopolitical context. In addition, enlargement countries should progressively strengthen their alignment and cooperation with the Union on hybrid threats, economic security, cybersecurity, critical infrastructure, border management and preparedness. This will help the enlargement countries consolidate their role as essential partners in countering cross-border threats and in improving the stability and security of the European continent.

Economic convergence needs to accelerate. Growth Plans, the Ukraine Facility, investment and gradual integration offer important opportunities for boosting the economies of enlargement countries before accession. The potential gains depend on reforms, regulatory alignment and enforcement, and a sound business and investment environment.

Significant progress has been achieved in recent years on gradual integration. The Commission is now putting forward a more structured approach, to bring clear benefits for the candidates and the EU alike, support accession preparations and serve shared strategic priorities. Participation would remain merit-based, conditional and reversible, and depend on policy readiness and strategic alignment. In the first quarter of next year, the Commission will launch gradual integration dialogues with the enlargement countries to take stock of existing measures and, where possible, to provide a more tailor-made offer.

The Commission looks forward to discussing further with the Council the conditions that should be attached to gradual integration. This could include for instance requirements related to CFSP alignment, defence industry integration, rule of law, cooperation on economic security or progress in the enlargement process itself.

Good neighbourly relations and regional cooperation remain essential. Bilateral issues unrelated to accession criteria should not be included in the enlargement negotiations as such. Outstanding bilateral issues should be addressed constructively and in good faith, through

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appropriate bilateral or international mechanisms, and existing agreements should be implemented. Reconciliation should be advanced: the European path should provide an incentive to overcome divisions.

Strategic communication and outreach on enlargement across both the Union and the enlargement countries will continue to play a key role in making the next EU enlargement a success. In parallel, strengthening resilience to foreign information manipulation and interference, including disinformation aimed at the enlargement process, remains essential to safeguarding the integrity of the process and ensuring informed public debate. The Commission has stepped up communication on what accession means for EU citizens and businesses, and what benefits and challenges there are for existing Member States. There are significant socio-economic, political and security advantages of a bigger and stronger Union. An enlarged EU is a better guarantor of political stability, security and peace on the continent. The Commission has also raised awareness of the candidate countries most advanced in the accession process. Member States and enlargement partners need to lead the national debate about enlargement, especially where public support and awareness are comparatively weaker. The Commission stands ready to support them in this effort. Two new elements complement the 2026 Enlargement package.

First, building on experience from the 2004 and 2013 enlargements, the Commission is proposing a set of indicative roadmaps covering milestones and an outlook for the year ahead for Montenegro, Albania, Moldova and Ukraine. These roadmaps will serve both as a pathway and an anchor for the accession negotiations for these negotiating countries and for the Member States. They will allow for better prioritisation, sequencing and monitoring of the process, providing greater predictability – a core principle of the 2020 revised methodology.

The roadmaps prejudge neither the outcome nor the pace of negotiations or any decision taken by the Council, the Commission or the European Parliament. They are living documents that may be adapted depending on progress made and may be updated by the Commission once a year in the framework of the enlargement package. The Commission is ready to put forward similar roadmaps for other candidate countries once they have reached a similar level of advancement, pace and engagement in the accession negotiations.

Second, as some candidates advance towards membership, the EU must be ready to welcome them. A larger Union must be stronger, more resilient and remain effective. In its Communication ‘Preparing for a wider Union’21, the Commission has set out the internal preparations needed to achieve this ambition - strengthening the Union’s governance, safeguarding its values and the rule of law, adapting its policies, and preparing its budget for enlargement.

II.

Montenegro’s progress is tangible evidence of the transformative power of the enlargement process when the acquis alignment is accompanied by firm focus on implementation. Montenegro has largely completed the reforms that are needed to close the negotiations, and the Commission has sent the relevant documentation to the Council. The establishment and ongoing work of the Ad Hoc Working Party on Montenegro’s accession treaty, together with the Council Conclusions on the financial package based on the Commission’s proposal, demonstrates that the EU delivers when a country progresses decisively on its EU path.

Since the last report, six inter-governmental conferences have been held with Montenegro, resulting in the provisional closure of 14 additional chapters, meaning a total of 21 closed chapters. Despite recurrent tensions between the ruling majority and the opposition, culminating with the failed motion to dismiss the Speaker of Parliament, Montenegro has managed to maintain cross-party agreement and broad support for EU-related reforms. Through political dialogue and as part of broader efforts to advance the EU accession process,

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this has enabled the Parliament to launch the process for constitutional amendments and adopt several of them, along with electoral reforms. It has also enabled the finalisation of most outstanding high-level appointments, including two vacant judges of the Constitutional Court. Montenegro has also made great strides in implementing its Reform Agenda, thereby supporting the reforms required for accession. The country remained fully aligned with the EU's common foreign and security policy.

The Commission assessment is that in line with the negotiating framework, an overall balance has been ensured between progress under the rule of law chapters and progress in the accession negotiations across chapters, and that Montenegro has met all outstanding closing benchmarks. As such, it considers that accession negotiations could realistically be closed by the end of 2026. The Commission is therefore proposing a roadmap for Montenegro for the next phases of the accession process leading up to the signature of the accession treaty. In the weeks and months ahead, it will be essential that Montenegro maintains a steady focus on completing the preparations for EU membership, sustaining the adopted reforms and ensuring continuous cross-party support to its EU path.

Albania continued its steady progress in accession negotiations. The country opened all accession negotiations clusters in just over a year. The adoption of the interim EU Common Position on Cluster 1 in May 2026 allowed the country to start closing chapters. By October 2026, negotiations on 4 chapters were closed: 25 – science and research, 26 – education and culture, 30 – external relations, and 20 – enterprise and industrial policy. Closing benchmarks on the rule of law were also adopted, confirming the good progress made by Albania in this area. The meaningful involvement of civil society to ensure a robust legislative process remains important. Albania also continued to make good progress on the implementation of its Reform Agenda. The country remained fully aligned with the EU's common foreign and security policy.

The progress under the Rule of Law chapters determine progress in the accession negotiations across all chapters. The Commission assessment is that, in line with the negotiating framework, an overall balance is currently ensured between progress under the rule of law chapters and progress in the accession negotiations across chapters. Cross-party cooperation and inclusive and constructive dialogue in the Parliament and with civil society are needed to move ahead on EU key reforms, in particular in the context of the ongoing largest protests since the country’s democratic transition. Albania needs to continue adopting key reforms to fulfil closing benchmarks across all chapters of negotiations. This is important for Albania to meet its ambitious but achievable target of closing negotiations by the end of 2027. The Commission puts forward a roadmap for next year to guide work towards this objective.

Moldova’saccession negotiations gained momentum in 2026, with the opening of clusters 1– fundamentals, 6 – external relations, as well as 2 – internal market and 3 – competitiveness and inclusive growth in June, July and October respectively. The Commission’s assessment remains that Moldova has met the conditions to open all remaining negotiation clusters. The September 2025 parliamentary elections re-confirmed Moldova’s strategic choice of future EU membership. 2026 also saw the further deepening of political and economic relations with the 2nd EU—Moldova Summit (22 June) and the EU—Moldova Investment Conference (4 June). Moldova’s high alignment with the EU Common Foreign and Security Policy continued to increase. Moldova also joined key gradual integration initiatives such as the Single European Payments Area, Roam Like Home, and the Common Transit Convention. Moldova continues to make very good progress implementing its Reform Agenda commitments under the EU Growth Plan but needs to accelerate work to build an investment pipeline.

Moldova intensified legislative alignment across most chapters of the EU acquis and further advanced on key rule of law reforms, most notably on judiciary, anti-corruption and the fight against organised and serious crime and on public administration reforms. To further advance essential rule of law and anti-corruption reforms, the European Commission and Moldova

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launched a joint task force in July 2026. Moldova has made very substantial progress towards meeting the interim benchmarks. These reforms, work on closing benchmarks, and further alignment with the acquis need to continue at pace, with strengthened implementation and enforcement capacity to ensure effective and sustained delivery on commitments. This includes working towards establishing a solid track record of investigations, prosecutions and final court rulings in corruption cases, including at high level.

The Commission assessment is that, in line with the negotiating framework, an overall balance is currently ensured between progress under the rule of law chapters and progress in the accession negotiations across chapters. The government of Moldova has signalled its objective to provisionally close accession negotiations by early 2028. The Commission is committed to supporting this objective, which is ambitious but achievable, provided Moldova maintains the current pace of reforms. The Commission puts forward a roadmap to guide work for next year.

Ukraine’s accession negotiations gained momentum in 2026 with the opening of cluster 1– fundamentals, 6 – external relations, as well as 2 – internal market and 3 – competitiveness and inclusive growth in June, July and October, respectively. The Commission’s assessment remains that Ukraine has met the conditions to open all remaining negotiation clusters. Amid the difficult circumstances brought by Russia’s ongoing war of aggression, Ukraine remained committed to the EU integration reform agenda, notably by continuing to demonstrate that its institutional framework for the fight against corruption is effective and that the specialised anti- corruption institutions continue to operate overall independently and effectively. 2026 also saw further deepening of the EU-Ukraine political and defence relations, including defence industry cooperation, with the launch of the EU-Ukraine Defence Industrial Partnership and the Drone Deal in July 2026. Integrating Ukraine into the European Defence Technological and Industrial Base should continue to enable co-production and joint ventures between European and Ukrainian defence industries. Recently there has been a renewed focus in Ukraine on the reforms and actual implementation of policy conditionality under Ukraine Facility and Ukraine Support Loan, with Ukraine having expressed the ambition to significantly advance in the implementation of rule of law chapters. This is a welcome development that must continue at pace. In October 2026, a joint task force was launched between the European Commission and Ukraine to further advance essential rule of law and anti-corruption reforms. Ukraine made progress on key sectoral reforms, such as customs, taxation and public procurement, as well as on alignment in the area of free movement of goods. On 1 January 2026, it joined the Roam Like at Home area, building on other gradual integration steps achieved in previous years. Ukraine has continued to advance on the implementation of the Ukraine Plan, maintaining a high level of completion of the steps agreed. It will be essential to further ensure sustained implementation in order to unlock available budget support. Ukraine’s alignment with the EU's common foreign and security policy remained very high.

The Commission’s assessment is that, subject to continued efforts on the rule of law, and in line with the negotiating framework, an overall balance is currently ensured between progress under the rule of law chapters and progress in the accession negotiations across chapters. Ukraine should now focus on meeting the interim benchmarks on rule of law and delivering on the roadmaps concerning the rule of law, the functioning of democratic institutions, public administration reform, and the action plan on national minorities. Ukraine should implement a comprehensive justice reform in line with EU acquis and European standards. It should demonstrate significant progress in tackling and preventing corruption and protecting fundamental rights in practice. Ukraine should also make tangible progress in the fight against serious and organised crime, co-operation in the field of drugs, migration and asylum. Further progress on rule of law will be essential to sustaining reform momentum and consolidating the progress achieved to date. Further progress is also needed on sectoral reforms to achieve full alignment with the EU acquis, in particular on aligning anti-money laundering and countering the financing of terrorism legislation to advance the prospect of joining SEPA. The Ukrainian government has signalled its objective to close accession negotiations by the end of 2028.

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The Commission is committed to support this ambitious objective but considers that to meet it an acceleration of the pace of reforms is required. The Commission puts forward a roadmap to guide work for next year.

During this reporting period, there has been no progress in the accession negotiations with Serbia.The period was marked by increasingsocietal polarisation in the country and erosion of trust between the Serbian authorities and civil society.

The outgoing government has reaffirmed that EU accession remains Serbia‘s strategic goal and work has advanced on the alignment with EU acquis and technical standards. At the same time, persistent anti-EU rhetoric and the glorification of convicted war criminal Ratko Mladic run counter to this declared strategic objective and to the fundamentals of the accession process, undermining Serbia’s EU path. Alignment with the EU’s CFSP remained low for a candidate country aspiring to join the EU.

The EU-facilitated Dialogue on the normalisation of relations between Serbia and Kosovo was heavily impacted by domestic political developments. Implementation of outstanding Dialogue commitments remained limited. Both Parties are expected to implement all their respective obligations stemming from the Agreement on the path to normalisation and its implementation annex22, as well as past Dialogue agreements.

The Commission maintains its assessment that Cluster 3 is technically ready for opening. Continued attention is needed to preserve the overall balance between progress under the rule of law chapters and normalisation of relations with Kosovo, on the one hand, and the overall pace of accession negotiations across chapters, on the other hand.

Serbia’s progress on its path towards the EU will depend on the efforts of the incoming Serbian government to refocus on the fundamentals of the accession process, including democratic criteria, the judiciary and fundamental rights. It will need to restore respectful democratic dialogue, demonstrate a clear and unambiguous commitment to EU values, including aligning with the EU’s geopolitical orientation, and make genuine efforts towards reconciliation, good- neighbourly relations and normalisation.

North Macedonia has yet to fulfil the commitments it made to amend its constitution to include citizens who live within the borders of the state and who are part of other people, such as Bulgarians23. At the same time, during this period the authorities continued to work on the roadmaps on public administration reform and the rule of law, with the accompanying action plan on minorities, required under the opening benchmarks for cluster 1, and the roadmap on functioning of democratic institutions. In 2026, North Macedonia has engaged more actively with the Growth Plan for the Western Balkans and with the implementation of key reforms under its Reform Agenda, making it one of the top performers under the Reform and Growth Facility.

North Macedonia should intensity efforts to uphold the rule of law, in particular by safeguarding judicial independence and strengthening the fight against corruption. Energy reforms are also key. The country remains fully aligned with the EU’s common foreign and security policy and continues to maintain generally good cooperation and bilateral relations with the EU and its neighbours.

The reporting period was marked by an increasing disengagement from the EU path on the part of Bosnia and Herzegovina. The work of the executive and legislature continued to be hindered by the lack of a functioning ruling coalition, and key EU-related reforms still need to be adopted. There was continued fallout from the criminal conviction and removal from office of Milorad Dodik, including institutional changes and early Presidential elections in the Republika Srpska entity. A new High Representative for Bosnia and Herzegovina remains to be appointed while an acting High Representative has been in office since June 2026 on an

22 2023 Ohrid Agreement 23 As referred to in the Council Conclusions of July 2022.

27

interim basis. While the severe political tensions reported last year initially subsided, political posturing, divisive rhetoric, and anti-EU narratives increased ahead of the general elections held on 4 October 2026. Bosnia and Herzegovina maintained its full alignment with the EU common foreign and security policy.

Following the elections, Bosnia and Herzegovina should proceed with setting up all executive and legislative bodies and show a renewed commitment to deliver swiftly on EU reforms. Bosnia and Herzegovina should urgently take the necessary steps to fully benefit from the Reform Agenda adopted under the Reform and Growth Facility in autumn 2025. It should finalise the adoption of the law on the High Judicial and Prosecutorial Council as well as the amendments to the Law on the Court of Bosnia and Herzegovina, in line with European standards, and appoint an operational Chief Negotiator. As soon as the country acts on these reforms, the Commission will be ready to table the negotiating framework with a view to its adoption by the Council, hold the first intergovernmental conference, and start the analytical screening process.

In Kosovo, persistent political fragmentation contributed to prolonged institutional crisis, leading to early parliamentary elections in December 2025 and again in June 2026. While public support for Kosovo’s European future remained strong, the institutional gridlock hindered the implementation of key EU-related reforms. Some progress has been made on serious and organised crime, but there was no progress on the functioning of the judiciary, with other concerning developments on rule of law. Following the transfer of local governance in northern Kosovo after the 2025 local elections, the Commission lifted its measures vis-à-vis Kosovo, re-engaging through the Stabilisation and Association Process Dialogue and resuming the delivery of financial assistance. Kosovo has reached full alignment with the EU’s Common Foreign and Security Policy. The Commission stands ready to prepare an Opinion on Kosovo's EU membership application if so requested.

Kosovo needs to benefit of the renewed institutional stability in order to unlock progress on its path towards the EU. Substantive efforts are needed to strengthen the independence of the judiciary and to uphold Kosovo’s multi-ethnic character as enshrined in the Constitution. Kosovo needs to abide by its international commitments to ensure the Kosovo Specialist Chambers’ judicial independence, and the commitment to ensure accountability and to give justice to the victims and their families from all communities in Kosovo.

The EU-facilitated Dialogue on the normalisation of relations between Kosovo and Serbia was heavily impacted by domestic political developments. Implementation of outstanding Dialogue commitments remained limited. Both Parties are expected to implement all their respective obligations stemming from the Agreement on the path to normalisation and its implementation annex24, as well as past Dialogue agreements.

Türkiye is a candidate country and a key partner of the European Union. Accession negotiations with Türkiye have remained at a standstill since 2018, in line with the Council’s conclusions. The underlying factors that led to this assessment remain unchanged. The past year saw further deterioration in the areas of democracy, fundamental rights and the rule of law, raising serious concerns. There is a widening gap between Türkiye’s stated objective of joining the EU and this backsliding on the fundamental political criteria for EU accession.

The EU has a strategic interest in a stable and secure environment in the Eastern Mediterranean and in developing a cooperative and mutually beneficial relationship with Türkiye. Cooperation is essential in areas of mutual interest, such as trade and economic relations, migration management, the green transition, the connectivity agenda aimed at bringing the EU closer to the South Caucasus and Central Asia, enhancing security in the Black Sea region. Türkiye is a significant regional actor in foreign and security policy, which constitutes an important dimension of the EU-Türkiye relationship, even though differences persist on certain foreign policy issues. Although interests and objectives have often been

24 2023 Ohrid Agreement

28

aligned on key regional developments, including peace and connectivity in the South Caucasus, stability in Syria, a ceasefire in Gaza and the objective of a two-state solution, as well as support for Ukraine’s sovereignty and territorial integrity, Türkiye has continued to maintain a very low rate of formal alignment with the EU’s Common Foreign and Security Policy. Türkiye implemented specific measures to stop the circumvention of EU sanctions against Russia through its territory and should continue to cooperate with the EU and step up its efforts in this area.

A phased, proportionate and reversible approach to reinvigorating key areas of cooperation with Türkiye should continue to apply, in line with the 2023 Joint Communication and the 2024 European Council conclusions. Türkiye’s own constructive efforts should be sustained, and EU concerns should be addressed. Türkiye is expected to respect international law, good neighbourly relations and the sovereignty of EU Member States. Türkiye is expected to actively support negotiations on a fair, comprehensive and viable settlement of the Cyprus issue within the UN framework, in accordance with the relevant UN Security Council resolutions, including their external aspects, and in line with the principles on which the EU is founded and with the acquis. Türkiye must also fulfil its obligation to ensure the full and non- discriminatory implementation of the Additional Protocol to the EU–Türkiye Association Agreement. The resumption of the settlement talks on Cyprus would open new opportunities for cooperation and for advancing the EU-Türkiye relationship.

The continued backsliding on the fundamentals observed during the reporting period confirms that Georgia remains an EU candidate in name only and continues to forego the benefits that candidate status and the pre-accession process bring. The ruling party in Georgia has continued to undermine the country’s EU path by pursuing its attack on democratic principles, the rule of law and fundamental rights, as well as by enabling further state capture. As a result of increasingly repressive legislation, civic space has been further and severely curtailed. Georgia continues to fall short of the nine steps set out in the Commission’s recommendation for candidate status. Georgian authorities have not addressed the concerns about the state of democracy and fundamental rights in the country that led the EU to suspend visa-free travel for Georgian diplomatic, service and official passport holders, putting at risk the visa-free regime more generally.

The EU’s longstanding support for Georgia’s independence, sovereignty and territorial integrity stands firm, as does its unwavering support for the European aspirations of the Georgian people.

Should the Georgian authorities decide to change course and recommit to the fundamental principles underpinning EU accession – democracy, the rule of law and fundamental rights – the country’s EU path could resume. The Commission would welcome such a resumption in light of the strong people-to-people ties that exist and the broad and longstanding public support in Georgia for the country’s democratic European future.

VI. ANNEXES

1. A roadmap for the accession negotiations with Montenegro

2. A roadmap for the accession negotiations with Albania

3. A roadmap for the accession negotiations with Moldova

4. A roadmap for the accession negotiations with Ukraine

5. Third party indicators related to the status of democracy, good governance and the

rule of law in candidate countries and potential candidates

6. Statistical data

29

EN EN

EUROPEAN COMMISSION

Brussels, 4.11.2026 COM(2026) 690 final

ANNEXES 1 to 6

ANNEXES

to the

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

2026 Communication on EU enlargement policy

{SWD(2026) 690 final} - {SWD(2026) 691 final} - {SWD(2026) 692 final} - {SWD(2026) 693 final} - {SWD(2026) 694 final} - {SWD(2026) 695 final} -

{SWD(2026) 696 final} - {SWD(2026) 697 final} - {SWD(2026) 698 final} - {SWD(2026) 699 final} - {SWD(2026) 700 final}

1

ANNEX I

A roadmap for the accession negotiations with Montenegro

An outlook for 2027

In the light of the overall progress to date in the accession negotiations, the Commission

presents the below roadmap for finalising the accession negotiations with Montenegro. The

roadmap presented below offers clear sequencing for the provisional closure of the remaining

individual negotiating chapters as well as the main steps following the conclusion of accession

negotiations. By the nature of the accession negotiations, the pace of which depends on

Montenegro’s progress in meeting the requirements for membership, this indicative timetable

prejudges neither the outcome, nor the pace of negotiations or any decision taken by the

Council, the Commission or the European Parliament.

The Commission will continue to support Montenegro in its preparations for accession, and

will continue to help it with expertise, including by making full use of instruments such as

TAIEX and twinning, and through well targeted financial assistance, including assistance

available under the Reform and Growth Facility, based on the Reform Agenda.

***

PHASE I: FROM NOW UNTIL THE CONCLUSION OF NEGOTIATIONS

Milestone: final intergovernmental conference - indicative date: December 2026

Following the IGC on 12 October 2026, 14 chapters remain to be closed in the accession

negotiations, which requires Council agreement that Montenegro has met the closing

benchmarks as well as agreement on transitional arrangements in certain chapters, on the

financial package for Montenegro and the respective institutional and other arrangements

related to the country’s accession.

The Commission considers that Montenegro has met all the closing benchmarks in the

accession negotiations and by mid-November the Commission intends to provide all remaining

draft EU common positions to the Council. The Commission therefore considers that accession

negotiations could be completed as soon as December 2026 according to the below priority

schedule for the closure of the chapters:

IGC in November

- Energy

- Transport

- Food safety, veterinary and phytosanitary policy

- Taxation

- Free movement of goods

IGC in December

- Financial services

- Regional policy and coordination of structural instruments

- Environment and climate change

2

- Foreign and security policy

- Financial and budgetary provisions

- Institutions

- Other issues

- Judiciary and fundamental rights

- Justice, freedom and security.

PHASE II. BETWEEN THE CONCLUSION OF NEGOTIATIONS AND SIGNATURE OF THE

ACCESSION TREATY

Without prejudice to the outcome of any decision of the Council, the European Commission

and the European Parliament in the process leading to Montenegro’s accession to the European

Union, the Commission would foresee the following steps following the conclusion of the

accession negotiations at the last intergovernmental conference in December 2026:

1. Progressive association with the Union’s institutions and working structures – phase 1

Milestone: final intergovernmental conference – indicative date December 2026

The Commission proposes that appropriate information arrangements be put in place in the

Council and in the Commission already after the final intergovernmental conference, ahead of

signature of the accession treaty. Such arrangements would aim to ensure that Montenegro is

kept adequately informed of proposals, communications, recommendations or initiatives.

2. Completing the work on the draft accession treaty

Indicative date: spring of 2027

Requirements

- the Commission to continue to submit to the Council the remaining draft texts at the

beginning of 2027;

- the draft accession treaty is agreed by the Member States and Montenegro;

- the draft accession treaty is translated into the current EU treaty languages and

Montenegrin.

3. Signature of the accession treaty with Montenegro

Indicative date: June 2027

Requirements

- EU primary law is translated into Montenegrin and revised by the Council;

- the Commission issues a positive opinion on Montenegro’s accession to the EU;

- the European Parliament gives its consent to Montenegro’s accession;

- the Council adopts a Council decision on the admission of Montenegro to the European

Union.

3

PHASE III: INTERIM PERIOD BETWEEN SIGNATURE AND MONTENEGRO’S ACCESSION TO THE

EUROPEAN UNION

Progressive association with the Union’s institutions and working structures – phase 2

Milestone: signature of the accession treaty - indicative date: June 2027

The European Parliament may invite the parliament of the acceding country to appoint

observers. The Commission will examine structured political participation in relevant

Commission activities, in full respect of the Treaties, the Commission’s institutional autonomy

and the principle of collegiality.

Following signature of the accession treaty, all Member States and Montenegro will need to

ratify the accession treaty according to their constitutional procedures.

***

Pre-accession monitoring

The Commission will continue to asses all the way to accession whether commitments,

including those related to the fundamentals, are being implemented by Montenegro and

maintained and will report regularly to the European Parliament and the Council. The

Commission will continue to make use of regular peer assessment missions, the bi-annual

monitoring tables as well as of all other available tools and measures. As in the past, the

Commission stands ready to report to the Council and the European Parliament regularly on

Montenegro’s progress in meeting its commitments from the accession negotiations. The

monitoring should identify shortcomings early and specify the corrective action required.

Where serious issues of concern arise, the Accession Treaty should enable the Council, acting

on a Commission proposal, to adopt appropriate measures focused on those commitments.

Where monitoring identifies backsliding before the first day of membership and targeted

measures would be insufficient, a postponement clause in the Accession Treaty could provide

a last resort instrument.

4

ANNEX II

A roadmap for the accession negotiations with Albania

An outlook for 2027

I. Introduction

In line with the negotiating framework for the accession negotiations, which foresees that the

intergovernmental conferences take stock of the overall accession process and set out an

indication for the year ahead of which clusters / chapters could potentially be opened or closed,

as well as in light of the overall progress achieved to date in the negotiations, the Commission

presents the below roadmap for accession negotiations with Albania for 2027.

The roadmap offers a sequencing for the provisional closure of negotiating chapters and cluster

1, as a whole. It therefore provides both a pathway and an anchor for the accession negotiations

for both Albania and the Member States.

Given the nature of accession negotiations, the pace of which depends on Albania’s progress

in meeting the requirements for membership, this indicative timeline neither prejudges the

outcome, nor the pace of negotiations. This roadmap is a living document, which the

Commission will update regularly, based on the progress made by Albania.

In line with the negotiating framework, progress in the negotiations remains measured in

particular against the requirements of the Copenhagen criteria, including the meeting of the

closing benchmarks set for the individual chapters and for cluster 1, the fulfilment of Albania’s

obligations under the Stabilisation and Association Agreement, as well as Albania's progress in

addressing the key areas identified in the Commission's reports and relevant Council

conclusions. Progress under the fundamentals’ cluster determines the overall pace of

negotiations, Albania needs to devote substantial further efforts to complete the work on the

closing benchmarks set out in the negotiating clusters to be able to provisionally close the

chapters. Progressing along the timelines set out in this roadmap will therefore depend upon

the pace of reforms in Albania.

II. Outlook for the year ahead

1. Priority schedule for provisional closure of chapters

Following the IGC on 13 October 2026, 31 chapters of the accession negotiations remain to be

closed. In order to reach the ambition of the Albanian authorities to close accession negotiations

by the end of 2027, it would be necessary for Albania to complete its work on the closing

benchmarks sufficiently in time as to allow for the closure of the remaining chapters, after

verification of the fulfilment of the closing benchmarks by the EU, and for the EU and Albania

to reach agreement on the transitional arrangements. Taking into consideration the relative

complexity and level of preparation in each chapter, as well as the relevant reform plans of the

authorities, the following initial priority schedule could be envisaged for the remainder of 2026

and 2027 for provisional closure of chapters:

Priority schedule for the remainder of 2026: intellectual property law; economic and monetary

policy; company law; fisheries and aquaculture; Trans-European networks; foreign and

security policy

Priority schedule for the first semester of 2027: public procurement; right of establishment and

freedom to provide services; free movement of capital; digital transformation and media;

5

Customs Union; financial control; transport policy; social policy and employment; financial

services; consumer and health protection.

Priority schedule for the second semester of 2027: freedom of movement of workers;

competition policy; agriculture and rural development; taxation; free movement of goods; food

safety, veterinary and phytosanitary policy; statistics; regional policy and coordination of

structural instruments; energy; environment and climate change; judiciary and fundamental

rights; justice, freedom and security; financial and budgetary provisions; institutions; other

issues; cluster 1 (the fundamentals), closed last.

Where the pace of reforms allows, the Commission will revise the priority schedule to reflect

the possibility of earlier provisional closure of chapters, subject to the relevant conditions being

met.

2. Other milestones of the accession negotiations

Subject to Albania making the necessary progress in its preparations, the Commission will

present a Communication in due course on a financial package for the accession of Albania.

The Commission further recommends that the Council starts the arrangements for drafting the

Accession Treaty with Albania in the course of 2027. In the meantime, Albania needs to ensure

the timely availability of the translation of the acquis in Albanian.

III. Gradual integration

Accession preparation must go hand in hand with progressively deeper integration of Albania

into Union policies, programmes, systems, agencies and working structures before

membership. This includes advancing participation in strategic sectors, expanding access to

parts of the Single Market where conditions are met, strengthening energy, transport and digital

connectivity, deepening security and defence cooperation, and delivering concrete benefits for

citizens and businesses. This will bring Albania closer to the EU and the Single Market already

ahead of membership. Bearing in mind Albania’s advanced stage of negotiations, which brings

membership closer, further areas of cooperation for gradual integration prior to accession will

be identified through the gradual integration dialogue to be launched in the first quarter of

2027. Deeper integration requires sustained alignment with the Union’s values, acquis and

strategic interests.



The Commission will continue to support Albania in its preparations for accession and will

continue to help it with expertise, including by making full use of instruments such as TAIEX

and twinning, and through well targeted financial assistance, including assistance available

under the Reform and Growth Facility, based on the Reform Agenda.

The Commission will closely monitor that the commitments undertaken by Albania in the

negotiations in particular in the area of the fundamentals, are fulfilled and will report on its

findings regularly to the Council. It will make use of monitoring tables, regular peer assessment

missions, including as regards the rule of law, as well as of all other available tools.

6

ANNEX III

A roadmap for the accession negotiations with Moldova

An outlook for 2027

I. Introduction

In line with the negotiating framework for the accession negotiations, which foresees that the

intergovernmental conferences take stock of the overall accession process and set out an

indication for the year ahead of which clusters / chapters could potentially be opened or closed,

as well as in light of the overall progress achieved to date in the negotiations, the Commission

presents the below roadmap for the accession negotiations with Moldova for 2027.

The roadmap outlines the main deliverables of the accession negotiations by the end of 2027,

starting with opening the remaining two negotiating clusters, the meeting the interim

benchmarks on the rule of law chapters, followed by the provisional closure of a number of

individual negotiating chapters. It therefore provides both a pathway and an anchor for the

accession negotiations for both Moldova and the Member States.

Given the nature of accession negotiations, the pace of which depends on Moldova’s progress

in meeting the requirements for membership, this indicative timeline neither prejudges the

outcome, nor the pace of negotiations. This roadmap is a living document, which the

Commission will update regularly, based on the progress made by Moldova.

In line with the negotiating framework, progress in the negotiations remains measured in

particular against the requirements of the Copenhagen criteria, including the meeting of the

benchmarks set for the individual chapters and for cluster 1, the fulfilment of Moldova’s

obligations under the Association Agreement, including a Deep and Comprehensive Free Trade

Area, as well as Moldova's progress in addressing the key areas identified in the Commission's

reports and relevant Council conclusions. Progress under the fundamentals’ cluster determines

the overall pace of negotiations. Moldova needs to devote substantial further efforts to

complete the work on the closing benchmarks set out in the negotiating clusters. Progressing

along the timelines set out in this roadmap will therefore depend upon the pace of reforms in

Moldova.

II. Outlook for the year ahead

1. Opening of the remaining clusters

The Commission considers that Moldova has met the necessary conditions and urges the

accession conference to make every effort to open the outstanding clusters - cluster 4 (The

green agenda and sustainable connectivity) and cluster 5 (Resources, agriculture, and cohesion)

by the end of 2026.

2. Meeting the interim benchmarks on the rule of law

In order to reach the next phase of accession negotiations where negotiating chapters can be

provisionally closed, it would be necessary for Moldova to complete its work on the interim

benchmarks on the rule of law chapters. The Commission considers that Moldova is well

advanced in its preparations to meet the interim benchmarks and will present the interim

benchmark assessment report together with the draft interim common position to the Council,

allowing Member States to process this assessment.

7

3. Initial priority schedule for provisional closure of chapters

All 35 chapters and cluster 1 of the accession negotiations remain to be closed. Work on the

closing benchmarks for all chapters should continue without delay. A chapter can be

provisionally closed after the EU has verified that the closing benchmarks have been fulfilled

and once the EU and Moldova have reached an agreement on the transitional arrangements, if

any. Taking into consideration the relative complexity of and Moldova’s level of preparation

in each chapter, as well as the relevant reform plans of the authorities, the following initial

priority schedule could be envisaged for 2027 for provisional closure of chapters:

- Priority schedule for the first semester of 2027: science and research; education and

culture; free movement of capital; intellectual property law; digital transformation and

media; Customs Union; fisheries and acquaculture; external relations; foreign, security

and defence policy

- Priority schedule for the second semester of 2027: right of establishment and freedom to

provide services; economic and monetary policy; social policy and employment; free

movement of goods; freedom of movement of workers; company law; competition

policy; financial services; consumer and health protection; taxation; enterprise and

industrial policy; transport; Trans-European networks; energy; environment and climate

change; food safety, veterinary and phytosanitary policy

Where the pace of reforms allows, the Commission will revise the priority schedule to reflect

the possibility of earlier or additional provisional closure of chapters, subject to the relevant

conditions being met.

III. Gradual integration

Accession preparation must go hand in hand with progressively deeper integration of Moldova

into Union policies, programmes, systems, agencies and working structures before

membership. This includes advancing participation in strategic sectors, expanding access to

parts of the Single Market where conditions are met, strengthening energy, transport and digital

connectivity, deepening security and defence cooperation, and delivering concrete benefits for

citizens and businesses. This will bring Moldova closer to the EU and the Single Market

already ahead of membership. Moldova is encouraged to take full advantage of the

opportunities for internal market treatment offered under the Deep and Comprehensive Free

Trade Area (DCFTA). Further areas of cooperation, possibly including wider market access,

will be identified through the gradual integration dialogue to be launched in the first quarter of

2027. Deeper integration requires sustained alignment with the Union’s values, acquis and

strategic interests.



The Commission will continue to support Moldova in its preparations for accession and will

continue to help it with expertise, including by making full use of instruments such as TAIEX

and twinning, and through well targeted financial assistance, including assistance available

under the Reform and Growth Facility, based on the Reform Agenda.

The Commission will closely monitor that the commitments undertaken by Moldova in the

negotiations in particular in the area of the fundamentals, are fulfilled and will report on its

findings regularly to the Council. It will make use of monitoring tables, regular peer assessment

missions, including as regards the rule of law, as well as of all other available tools.

8

ANNEX IV

A roadmap for the accession negotiations with Ukraine

An outlook for 2027

I. Introduction

In line with the negotiating framework for the accession negotiations, which foresees that the

intergovernmental conferences take stock of the overall accession process and set out an

indication for the year ahead of which clusters / chapters could potentially be opened or closed,

as well as in light of the overall progress achieved to date in the negotiations, the Commission

presents the below roadmap for the accession negotiations with Ukraine for 2027.

The roadmap outlines the main deliverables of the accession negotiations by the end of 2027,

starting with opening the remaining two negotiating clusters, the meeting of the interim

benchmarks on the rule of law chapters, followed by the provisional closure of a number of

individual negotiating chapters. It therefore provides both a pathway and an anchor for the

accession negotiations for both Ukraine and the Member States.

Given the nature of accession negotiations, the pace of which depends on Ukraine’s progress

in meeting the requirements for membership, this indicative timeline neither prejudges the

outcome, nor the pace of negotiations. This roadmap is a living document, which the

Commission will update regularly, based on the progress made by Ukraine.

In line with the negotiating framework, progress in the negotiations remains measured in

particular against the requirements of the Copenhagen criteria, including the meeting of the

benchmarks set for the individual chapters and for cluster 1, the fulfilment of Ukraine’s

obligations under the Association Agreement, including a Deep and Comprehensive Free Trade

Area, as well as Ukraine's progress in addressing the key areas identified in the Commission's

reports and relevant Council conclusions. Progress under the fundamentals’ cluster determines

the overall pace of negotiations. Ukraine needs to devote substantial further efforts to complete

the work on the interim and the closing benchmarks set out in the negotiating clusters.

Progressing along the timelines set out in this roadmap will therefore depend upon the pace of

reforms in Ukraine.

II. Outlook for the year ahead

1. Opening of the remaining clusters

The Commission considers that Ukraine has met the necessary conditions and urges the

accession conference to make every effort to open the outstanding clusters - cluster 4 (The

green agenda and sustainable connectivity) and cluster 5 (Resources, agriculture, and cohesion)

by the end of 2026.

2. Meeting the interim benchmarks on the rule of law

In order to reach the next phase of accession negotiations where negotiating chapters can be

provisionally closed, it would be necessary for Ukraine to complete its work on the interim

benchmarks on the rule of law chapters. The Commission welcomes the intention of Ukraine

to urgently and significantly step up the pace of the rule of law reforms, which are often

complex and require broad consultations with various stakeholders, allocating sufficient time

and resources to this effort to meet the established targets in the first semester of 2027. In order

to guide Ukraine towards this objective, the Commission has set up a dedicated task-force for

an enhanced coordinated support.

9

3. Initial priority schedule for provisional closure of chapters

All 35 chapters and cluster 1 of the accession negotiations remain to be closed. Work on the

closing benchmarks for all chapters should continue without delay in parallel with the

fulfilment of the interim benchmarks. A chapter can be provisionally closed after the EU has

verified that the closing benchmarks have been fulfilled and once the EU and Ukraine have

reached an agreement on the transitional arrangements, if any. Taking into consideration the

relative complexity of and Ukraine’s level of preparation in each chapter, as well as the relevant

reform plans of the authorities, the following initial priority schedule could be established for

2027 for provisional closure of chapters:

- Priority schedule for the first semester of 2027: education and culture

- Priority schedule for the second semester of 2027: intellectual property law; social policy

and employment; enterprise and industrial policy; science and research; external relations;

foreign, security and defence policy

Where the pace of reforms allows, the Commission will revise the priority schedule to reflect

the possibility of earlier or additional provisional closure of chapters, subject to the relevant

conditions being met.

III. Gradual integration

Accession preparation must go hand in hand with progressively deeper integration of Ukraine

into Union policies, programmes, systems, agencies and working structures before

membership. This includes advancing participation in strategic sectors, expanding access to

parts of the Single Market where conditions are met, strengthening energy, transport and digital

connectivity, deepening security and defence cooperation, and delivering concrete benefits for

citizens and businesses. This will bring Ukraine closer to the EU and the Single Market already

ahead of membership. Ukraine is encouraged to take full advantage of the opportunities for

internal market treatment offered under the Deep and Comprehensive Free Trade Area

(DCFTA). Building on the progress already achieved under the Priority Action Plan for the

implementation of the DCFTA, gradual integration in 2027 should focus in particular on

concluding the Agreement on Conformity Assessment and Acceptance of Industrial Products

(ACAA), on Ukraine’s integration in the Single Euro Payment Area (SEPA) and on achieving

electricity market coupling with the EU, within the legal framework of the Energy Community

Treaty and in line with the Electricity Integration Package. This will reduce compliance costs

and further integrate Ukrainian industry into EU value chains and financial system. Further

areas of cooperation will be identified through the gradual integration dialogue to be launched

in the first quarter of 2027. Deeper integration requires sustained alignment with the Union’s

values, acquis and strategic interests.



The Commission will continue to support Ukraine in its preparations for accession and will

continue to help it with expertise, including by making full use of instruments such as TAIEX

and twinning, and through well targeted financial assistance, including assistance available

under the Ukraine Facility.

The Commission will closely monitor that the commitments undertaken by Ukraine in the

negotiations, in particular in the areas of the fundamentals, are fulfilled and will report on its

findings regularly to the Council. It will make use of monitoring tables, regular peer assessment

missions, including as regards the rule of law, as well as of all other available tools.

10

ANNEX V

Indexes

THIRD PARTY INDICATORS RELATED TO THE STATUS OF DEMOCRACY, GOOD GOVERNANCE AND THE RULE OF LAW IN CANDIDATE

COUNTRIES AND POTENTIAL CANDIDATES1

Albania

Bosnia and

Herzegovina

Kosovo

North

Macedonia

Montenegro

Serbia

Türkiye

Georgia Moldova Ukraine

Freedom in the World 2026 -

Global Freedom Score,

Freedom House

Countries and Territories |

Freedom House

Total score: 69/100

(2025: 68/100)

Status: Partly free

(2025: Partly

free)

Total score: 54/100

(2025: 52/100)

Status: Partly free

(2025: Partly

free)

Total score: 61/100

(2025: 60/100)

Status: Partly free

(2025: Partly

free)

Total score: 67/100

(2025: 67/100)

Status: Partly free

(2025: Partly

free)

Total score: 68/100

(2025: 69/100)

Status: Partly free

(2025: Partly

free)

Total score: 53/100

(2025: 56/100)

Status: Partly free

(2025: Partly

free)

Total score:

32/100

(2025: 33/100) Status: Not free

(2025: Not free)

Total score: 51/100

(2025: 55/100)

Status: Partly free

(2025: Partly

free)

Total score: 60/100

(2025: 60/100)

Status: Partly free

(2025: Partly

free)

Total score: 51/100

(2025: 51/100)

Status: Partly free

(2025: Partly

free)

Democracy Index 2025 - The

Economist Intelligence Unit

Democracy Index 2025 -

Economist Intelligence Unit

Overall Score:

6.20/10

(2024: 6.20/10) Rank: 67/167

(2024: 66/167)

Regime type:

Flawed democracy

(2024: Flawed

democracy)

Overall Score:

5.23/10

(2024: 5.06/10)

Rank: 85/167

(2024: 88/167)

Regime type: Hybrid regime

(2024: Hybrid

regime)

n/a

Overall Score:

6.28/10

(2024: 6.28/10) Rank: 64/167

(2024: 62/167)

Regime type:

Flawed democracy

(2024: Flawed

democracy)

Overall Score:

6.73/10

(2024: 6.73/10) Rank: 53/167

(2024: 50/167)

Regime type:

Flawed democracy

(2024: Flawed

democracy)

Overall Score:

6.30/10

(2024: 6.26/10) Rank: 63/167

(2024: 64/167)

Regime type:

Flawed democracy

(2024: Flawed

democracy)

Overall Score:

4.26/10

(2024: 4.26/10)

Rank: 102/167

(2024: 104/167)

Regime type: Hybrid regime

(2024: Hybrid

regime)

Overall Score:

4.36/10

(2024: 4.70/10) Rank: 99/167

(2024: 94/167)

Regime type: Hybrid regime

(2024: Hybrid

regime)

Overall Score:

5.86/10

(2024: 6.04/10) Rank: 77/167

(2024: 71/167)

Regime type:

Flawed democracy

(2024: Flawed

democracy)

Overall Score:

4.79/10

(2024: 4.90/10)

Rank: 93/167

(2024: 92/167)

Regime type: Hybrid regime

(2024: Hybrid

regime)

World Press Freedom Index 2026

- Reporters without borders

https://rsf.org/en/index

Global Score:

56.52/100 (2025:

58.18/100) Rank: 83/180

(2025: 80/180)

Global Score:

54.29/100

(2025:

56.33/100)

Rank: 90/180 (2025: 86/180)

Global Score:

55.89/100

(2025:

52.73/100)

Rank: 84/180 (2025: 99/180)

Global Score:

69.49/100

(2025:

70.44/100)

Rank: 45/180 (2025: 42/180)

Global Score:

71.80/100

(2025:

72.83/100)

Rank: 41/180 (2025: 37/180)

Global Score:

50.79/100

(2025:

53.55/100)

Rank: 104/180 (2025: 96/180)

Global Score:

27.94/100

(2025:

29.40/100)

Rank: 163/180 (2025: 159/180)

Global Score:

40.77/100

(2025:

50.53/100)

Rank: 135/180 (2025: 114/180)

Global Score:

74.77/100

(2025:

73.36/100)

Rank: 31/180 (2025: 35/180)

Global Score:

66.10/100

(2025:

63.93/100)

Rank: 55/180 (2025: 62/180)

1 The table presents the latest available ranking and/or scores by third parties. Additional reference to data from previous assessment is shown in between parenthesis, when available.

11

Rule of Law Index 2025 - World

Justice Project

https://worldjusticeproject.org/

rule-of-law-index/global/

Overall Score:

0.49/1 (2024: 0.48/1)

Global Rank:

87/142 (2024: 89/140)

Overall Score:

0.52/1 (2024: 0.52/1)

Global Rank:

70/142 (2024: 71/140)

Overall Score:

0.56/1 (2024: 0.56/1)

Global Rank:

59/142 (2024: 58/140)

Overall Score:

0.54/1 (2024: 0.53/1)

Global Rank:

64/142 (2024: 67/140)

Overall Score:

0.57/1 (2024: 0.57/1)

Global Rank:

55/142 (2024: 56/142)

Overall Score:

0.47/1 (2024: 0.47/1)

Global Rank:

96/142 (2024: 94/140)

Overall Score:

0.41/1 (2024: 0.42/1)

Global Rank:

118/142 (2024: 117/140)

Overall Score:

0.58/1 (2024: 0.60/1)

Global Rank:

52/142 (2024: 49/140)

Overall Score:

0.53/1 (2024: 0.54/1)

Global Rank:

68/142 (2024: 64/140)

Overall Score:

0.48/1 (2024: 0.49/1)

Global Rank:

90/142 (2024: 88/140)

Worldwide Governance

Indicators 2025 - Rule of Law,

The World Bank Group

https://www.worldbank.org/en/pu

blication/worldwide-governance-

indicators

Score: 2025: 57.99/100

2024: 56.86/100

Score: 2025: 53.03/100

2024: 52.41/100

Score: 2025: 0.44/100

2024: 0.05/100

Score: 2025: 56.30/100

2024: 54.94/100

Score: 2025: 62.06/100

2024: 61.67/100

Score: 2025: 53.34/100

2024: 55.17/100

Score: 2025: 45.25/100

2024: 44.94/100

Score: 2025: 60.20/100

2024: 60.83/100

Score: 2025: 56.12/100

2024: 56.01/100

Score: 2025: 45.64/100

2024: 46.13/100

Worldwide Governance

Indicators 2025 - Government

Effectiveness, The World Bank

Group

https://www.worldbank.org/en/pu

blication/worldwide-governance-

indicators

Score:

2025: 61.98/100 2024: 53.97/100

Score:

2025: 42.60/100 2024: 42.01/100

Score:

2025: 49.86/100 2024: 50.49/100

Score:

2025: 56.37/100 2024: 54.88/100

Score:

2025: 61.98/100 2024: 62.57/100

Score:

2025: 53.02/100 2024: 54.04/100

Score:

2025: 52.94/100 2024: 51.27/100

Score:

2025: 59.53/100 2024: 58.74/100

Score:

2025: 56.73/100 2024: 56.30/100

Score:

2025: 40.15/100 2024: 40.65/100

Worldwide Governance

Indicators 2025 - Control of

Corruption, The World Bank

Group

https://www.worldbank.org/en/pu

blication/worldwide-governance-

indicators

Score:

2025: 41.97/100 2024: 41.00/100

Score:

2025: 38.35/100 2024: 38.10/100

Score:

2025: 42.80/100 2024: 44.40/100

Score:

2025: 42.04/100 2024: 41.38/100

Score:

2025: 49.57/100 2024: 46.87/100

Score:

2025: 35.90/100 2024: 36.94/100

Score:

2025: 37.39/100 2024: 36.83/100

Score:

2025: 45.22/100 2024: 56.21/100

Score:

2025: 42.92/100 2024: 42.15/100

Score:

2025: 34.11/100 2024: 34.25/100

Corruption Perceptions Index

2025 - Transparency International

https://www.transparency.org/en/

cpi/2025

Score: 39/100 (2024: 42/100)

Rank: 91/182 (2024: 80/180)

Score: 34/100 (2024: 33/100)

Rank: 109/182 (2024:114/180)

Score: 43/100 (2024: 44/100)

Rank: 76/182 (2024: 73/180)

Score: 40/100 (2024: 40/100)

Rank: 84/182 (2024: 88/180)

Score: 46/100 (2024: 46/100)

Rank: 65/182 (2024: 65/180)

Score: 33/100 (2024: 35/100)

Rank: 116/182 (2024: 105/180)

Score: 31/100 (2024: 34/100)

Rank: 124/182 (2024: 107/180)

Score: 50/100 (2024: 53/100)

Rank: 56/182 (2024: 53/180)

Score: 42/100 (2024: 43/100)

Rank: 80/182 (2024: 76/180)

Score: 36/100 (2024: 35/100)

Rank: 104/182 (2024: 105/180)

Civicus Monitor 2025 - Global

Civil Society Alliance

https://monitor.civicus.org/globalf

indings_2025/

Score: 68/100 (2024: 64/100)

Rating:

Narrowed (2024:

Narrowed)

Score: 57/100 (2024: 56/100)

Rating:

Obstructed (2024:

Obstructed)

Score: 67/100 (2024: 62/100)

Rating:

Narrowed (2024:

Narrowed)

Score: 69/100 (2024: 74/100)

Rating:

Narrowed (2024:

Narrowed)

Score: 77/100 (2024: 76/100)

Rating:

Narrowed (2024:

Narrowed)

Score: 38/100 (2024: 49/100)

Rating:

Repressed (2024:

Obstructed)

Score: 23/100 (2024: 24/100)

Rating:

Repressed (2024:

Repressed)

Score: 34/100 (2024: 54/100)

Rating:

Repressed (2024:

Obstructed)

Score: 72/100 (2024: 71/100)

Rating:

Narrowed (2024:

Narrowed)

Score: 52/100 (2024: 50/100)

Rating:

Obstructed (2024:

Obstructed)

12

ANNEX VI

Statistical Annex

STATISTICAL DATA (as of 14/09/2026), part 1 (Albania – Montenegro)

Demography Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Total population (thousands)

2 762 i 2 391 i 3 441 pi 3 417 pi : : 1 830 i 1 826 i 617 i 624 i 447 806 bi

449 490 pi

Share of 15-64 in total population (%)

67.5 i : : : : : 65.5 i 65.2 i 65.7 i 65.1 i 63.8 bpi 63.8 pi

Crude rate of natural population change (per 1 000 inhabitants)

0.9 0.5 - 2.8 p - 3.2 p : : -1.9 -2.3 1.1 1.0 - 2.6 bep - 2.8 ep

Life expectancy at birth, males (years)

: 78.4 b : : : : : : 75.1 75.2 b 78.6 bep 78.9 ep

Life expectancy at birth, females (years)

: 82.4 b : : : : : : 80.2 80.1 b 83.9 bep 84.1 ep

Labour market Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Economic activity rate for persons aged 20-64: proportion of the population aged 20-64 that is economically active (%)

Total 81.4 w 81.6 w 64.3 66.6 45.1 w 47.9 w 71 71.3 76.3 w 78.2 w 80.0 80.3

Males 88.1 w 88.9 w 77.7 79.8 64.1 w 67.5 w 82.5 82.5 82.0 w 84.4 w 85.2 85.5

Females 75.1 w 74.7 w 50.6 53.1 26.8 w 28.4 w 59.4 60.2 70.6 w 71.8 w 74.8 75.2

Employment rates, aged 20- 64 (% of the population)

Total 73.4 w 74.1 w 55.9 58.2 40.3 w 42.9 w 61.7 62.7 66.5 w 69.7 w 75.3 75.7

Males 79.6 w 81.2 w 69.5 71.9 59.4 w 62.5 w 70.7 71.7 72.0 w 76.1 w 80.4 80.7

Females 67.5 w 67.4 w 42.1 44.3 22.0 w 23.5 w 52.7 53.7 61.0 w 63.3 w 70.2 70.7

Persons aged 15-24 not in employment, education or training, % of the population in the age group

22.8 w 20.9 w 16.5 14.7 33.4 w 31.4 w 18.8 18.2 17.3 w 14.2 w 9.2 9.2

13

Labour market (cont.) Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Persons aged 15-29 not in employment, education or training, % of the population in the age group

25.0 w 22.2 w 22.2 20.1 37.6 w 35.4 w 24.2 22.6 20.3 w 16.5 w 11.3 11.2

Employment by main sectors

Agriculture, forestry and fisheries (%)

37.2 w 36.7 w 7.6 i 7.7 i 2.4 w 2.8 w 7.8 i 9.0 i 4.5 w 4.3 w 3.6 i 3.3 i

Industry (%)

12.2 w 12.5 w 25.1 i 24.2 i 12.9 w 14.4 w 23.7 i 23.9 i 9.8 w 10.4 w 17.4 i 17.2 i

Construction (%)

7.4 w 7.9 w 9.2 i 9.5 i 11.8 w 12.6 w 7.3 i 6.7 i 8.6 w 8.7 w 6.8 i 6.9 i

Services (%)

43.2 w 42.8 w 58.0 i 58.6 i 72.9 w 70.2 w 61.2 i 60.4 i 77.1 w 76.6 w 72.0 i 72.1 i

People employed in the public sector as a share of total employment, persons aged 20-64 (%)

1) 18.2 w 19.0 w 19.0 w 19.0 w 27.4 w 26.1 w : : 28.3 w 29.8 w : :

People employed in the private sector as a share of total employment, persons aged 20-64 (%)

81.8 w 81.0 w 81.0 w 81.0 w 72.6 w 73.9 w : : 68.4 w 66.7 w : :

Unemployment rates (% of the labour force)

Total

9.6 w 8.5 w 13.2 12.6 10.8 w 10.9 w 13.1 12.3 13.1 w 11.4 w 6.1 6.0

Males

9.3 w 8.0 w 10.9 10.1 7.6 w 7.7 w 14.3 13.3 12.2 w 10.8 w 5.8 5.8

Females

9.9 w 9.2 w 16.7 16.6 18.2 w 18.5 w 11.4 11.0 14.0 w 12.2 w 6.4 6.2

Youth, aged 15-24

24.5 w 22.8 w 30.1 30.2 17.3 w 19.5 w 29.4 28.9 23.3 w 26.0 w 14.6 15.0

Long-term (>12 months)

6.8 w 6.5 w 9.6 9.0 7.7 w 8.5 w 9.4 8.0 9.4 w 8.5 w 2.1 1.9

Average nominal monthly wages and salaries (EUR)

2) 648 iw 769 iw 646 iw 706 iw 570 iw 639 iw 595 iw 670 iw 792 iw 876 iw : :

14

Education Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Public expenditure on education relative to GDP (%)

2.9 iw 3.0 piw : : 4.1 iw 4.3 iw : : : : 4.7 d :

Participation in early childhood education (children aged 3 and over)

3) 82.9 w 94.2 w 43.6 w 45.0 w : : 46.1 48.3 78.3 78.6 94.6 d 94.9 d

Participation in early childhood education (children aged 3 and over), males

3) 84.3 w 93.8 w 44.1 w 45.3 w : : 46.2 47.3 78.4 78.6 94.5 d 94.8 d

Participation in early childhood education (children aged 3 and over), females

3) 81.5 w 94.6 w 43.2 w 44.7 w : : 46.1 49.4 78.2 78.5 94.7 d 95.0 d

Low achieving 15-year-olds in reading

4) 73.7 : : : : : 73.6 : 52.9 : 26.2 :

Low achieving 15-year-olds in mathematics

4) 73.9 : : : : : 66.2 : 59.5 : 29.5 :

Low achieving 15-year-olds in science

4) 67.4 : : : : : 65.3 : 54.9 : 24.2 :

Early leavers from education and training: percentage of the population aged 18-24 with at most a lower secondary education and not in further education or training (%)

15.7 w 15.4 w 4.2 3.8 7.7 w 6.2 w 8.4 8.0 6.8 w 4.9 w 9.6 9.6

Male early leavers from education and training: proportion of men aged 18-24 with at most lower secondary education (at most ISCED 2011 level 2) who are not in further education or training

: : 5.2 5.0 : : 8.6 8.9 : : 11.3 11.2

Female early leavers from education and training: proportion of women aged 18- 24 with at most lower secondary education (at most ISCED 2011 level 2) who are not in further education or training

: : 3.1 2.5 : : 8.2 7.0 : : 7.7 7.9

15

Education Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Proportion of persons aged 25-64 having participated in education and training (last 4 weeks)

0.7 w 1.6 w 1.8 1.6 4.5 w 2.3 w 2.5 2.8 2.8 w 3.6 w 12.8 13.5

Proportion of persons aged 25-64 having participated in education and training (last 4 weeks), men

0.6 w 1.3 w 1.5 1.2 4.3 w 2.0 w 2.7 2.4 2.2 w 2.6 w 11.6 12.2

Proportion of persons aged 25-64 having participated in education and training (last 4 weeks), women

0.8 w 1.9 w 2.0 2.0 4.8 w 2.5 w 2.4 3.1 3.5 w 4.6 w 14.0 14.7

Exposure of vocational education and training (VET) graduates to work-based learning (% of population aged 20-34)

1.6 w 1.9 w : : : : 4.4 : : : 64.4 65.2

Percentage of the population aged 20-24 with at most lower secondary education, total

17.4 w 16.5 w 8.1 8.2 8.8 w 7.6 w 12.9 7.5 3.8 w 4.7 w 15.0 15

Percentage of the population aged 20-24 with at most lower secondary education, males

19.0 w 19.9 w 8.8 10.2 8.1 w 7.1 w 11.8 7.3 4.6 w 6.0 w 17.5 17.4

Percentage of the population aged 20-24 with at most lower secondary education, females

16.0 w 12.9 w 7.5 6.2 9.6 w 8.2 w 14 7.7 3.0 w 3.2 w 12.3 12.5

Percentage of the population aged 20-24 with upper secondary or post secondary non-tertiary education, total

57.8 w 55.9 w 86.1 85.4 77.5 w 79.1 w 78.1 85.0 86.2 w 83.9 w 65.9 65.6

Percentage of the population aged 20-24 with upper secondary or post secondary non-tertiary education, males

65.0 w 63.0 w 87.2 84.8 83.0 w 83.6 w 81.0 88.1 84.5 w 84.1 w 66.3 66.1

Percentage of the population aged 20-24 with upper secondary or post secondary non-tertiary education, females

51.0 w 48.5 w 85.1 86 71.7 w 74.3 w 75.1 81.7 88.0 w 83.6 w 65.4 65.1

Percentage of the population aged 30-34 with tertiary education, total

36.5 w 37.8 w 28.2 26.7 30.6 w 29.1 w 35.5 39.3 40.9 w 41.3 w 43.8 44.5

16

Education Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Percentage of the population aged 30-34 with tertiary education, males

31.2 w 34.0 w 23.5 21.3 23.9 w 23.6 w 31.4 32.5 37.7 w 41.4 w 38.4 39.2

Percentage of the population aged 30-34 with tertiary education, females

42.0 w 42.5 w 33.1 32.6 37.4 w 34.8 w 39.8 46.3 44.1 w 41.3 w 49.4 50

Share of individuals having at least basic digital skills (% of population aged 16-74)

23.3 : 30.1 36.3 w 52.5 pw : : : 52.0 : 55.6 :

Share of individuals having at least basic digital skills (% of population aged 16-74), males

25.1 : 30.8 41.1 w 52.8 pw : : : 53.5 : 56.7 :

Share of individuals having at least basic digital skills (% of population aged 16-74), females

21.6 : 29.3 34.1 w 52.3 pw : : : 50.0 : 54.5 :

17

National accounts Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Gross domestic product

In current prices (EUR million)

21 739 24 995 25 524 27 483 9 680 10 350 14 667 15 672 p 7 069 7 645 17 259

390 18 043

410

Per capita (EUR)

7 868 iw : 7 460 8 050 : : 8 020 e 8 590 e 11 340 12 260 38 450 40 110

In purchasing power standards (PPS) per capita

: : 13 600 13 800 : : 15 837 e 16 932 e 19 903 21 365 38 366 39 985

In purchasing power standards (PPS) per capita, relative to the EU average (EU-27 = 100)

: : : : : : 41.3 e 42.3 e 51.9 53.4 100 100

Real (volume) annual rate of change, compared with the previous year (%)

4.0 4.0 p 2.0 3.2 4.1 4.6 2.6 3.0 p 6.5 3.2 0.4 1.2

Gross value added by main sectors

Agriculture, forestry and fisheries (%)

18.4 17.7 5.5 5.4 9.0 9.3 7.1 7.0 p 4.7 4.4 1.8 1.8

Industry (%)

13.6 12.8 22.7 21.2 22.8 22.8 20.6 20.6 p 11.1 10.5 20.2 19.4

Construction (%)

13.8 14.1 5.4 5.6 10.1 10.0 7.0 7.2 p 4.8 4.9 5.5 5.5

Services (%)

54.1 i 55.4 i 66.3 i 67.8 i 58.2 i 57.9 i 65.4 i 65.1 pi 79.4 i 80.3 i 72.5 i 73.4 i

Balance of payments Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Net (inward - outward) foreign direct investment (FDI) (million euro)

1 253.6 i 1 337.3 i 949.8 i 816.1 i 650.1 w 569.2 w 488.1 w 1 036.8

w 434.0 i 491.0 i - 60

215.5 i - 150

086.3 i

Net (inward - outward) foreign direct investment (FDI) (% of GDP)

5.77 i 5.35 i 3.72 i 2.97 i 6.72 i 5.50 i 3.33 i 6.62 pi 6.14 i 6.42 i - 0.35 i - 0.83 i

Net (inward - outward) foreign direct investment (FDI) in relation to EU-27 (million euro)

813.4 i 762.5 i 451.5 i 676.5 i 352.0 i 304.1 i 402.2 i 642.0 i 95.0 i 79.0 i - 25

748.0 i 113 753.6

i

Net (inward - outward) foreign direct investment (FDI) in relation to EU-27 (% of GDP)

3.74 i 3.05 i 1.77 i 2.46 i 3.64 i 2.94 i 2.74 i 4.10 pi 1.34 i 1.03 i - 0.15 i 0.63 i

Remittances as % of GDP

4.26 i 4.18 i 7.59 i 7.75 i 13.80 i 0.00 i 2.32 i 2.11 pi 5.52 i 5.38 i 0.14 i 0.14 i

18

External trade in goods Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Share of exports to EU-27 countries in value of total exports (%)

70.8 iw 71.6 iw 73.0 iw 73.1 iw 32.3 iw 33.1 iw 78.7 iw 76.9 iw 36.1 iw 29.1 iw : :

Share of imports from EU-27 countries in value of total imports (%)

50.9 iw 51.4 iw 59.0 iw 59.2 iw 43.0 iw 44.7 iw 49.2 iw 50.5 iw 45.8 iw 45.7 iw : :

Trade balance (EUR million)

- 3 994 - 5 191 - 5 659 - 6 432 - 5 044 - 5 437 - 2 826 - 3 282 - 3 136 - 3 453 35 331 133 115

International trade in goods and services relative to GDP

Imports (% of GDP)

43.9 43.2 55.7 54.1 70.3 72 80.4 74.6 p 67.6 66.2 48.1 46.3

Exports (% of GDP)

38 36.3 43.9 40.7 39.6 41.7 p 67.4 61.7 p 49.2 43.7 51.7 50.4

Public finance Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

General government surplus (+) / deficit (-) (%)

-0.8 wd -0.3 wd : : : : : : : : -3.4 -3.1

General government debt (%)

54.6 wd 51.5 wd : : : : : : : : 80.5 80.7

19

Financial indicators Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Annual change in consumer prices (%)

5) 6.6 d 5.3 d 14.0 w 6.1 w 11.6 d 4.9 d 14.0 d 9.0 d 11.9 d 8.7 d 9.2 6.4

Total external debt, relative to GDP (%)

6) 54.1 iw 46.3 piw 51.6 iw 47.4 iw 38.6 iw 39.6 iw 81.5 iw 77.9 piw 158.7 iw 130.1 iw : :

Value of reserve assets (including gold) (million euro)

-71.8 911.5 72.8 26.5 67.6 -44 271.6 603.1 164 -482 : :

International reserves - equivalence in months of imports

6) 6.9 iw 7.3 iw 6.8 iw 7.0 iw 2.2 iw 2.0 iw 3.7 iw 4.6 iw 5.2 iw 3.6 iw : :

20

Business Note Albania

Bosnia and Herzegovina

Kosovo North Macedonia Montenegro EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Industrial production index (2021 = 100)

94 87 97 93.1 : : 100.4 96.8 103 102.9 101.1 98.7

Infrastructure Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Density of railway network (lines in operation per thousand km²)

8.8 i 8.8 i 19.9 iw 19.9 iw 30.5 iw 30.5 iw 26.9 i 26.9 i 18.0 i 18.0 i 47.7 i 47.7 i

Length of motorways (kilometres)

25 49 231 242 : : 335 335 0 0 76 515 :

Energy Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Net energy imports in relation to GDP

1.1 i 1.6 i 4.2 i 4.6 i 7.5 i 6.9 i 7.5 i 6.6 pi 2.1 i 3.5 i 3.2 i 2.6 i

21

STATISTICAL DATA (as of 14/09/2026), part 2 (Serbia – Ukraine)

Demography Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Total population (thousands)

6 641 i 6 605 i 85 280 i 85 372 i 3 736 i 3 695 i 2 513 pi 2 423 pi : : 447 806 bi

449 490 pi

Share of 15-64 in total population (%)

63.4 bi 63.1 i 68.1 i 68.3 i 63.8 i 64.3 i 65.9 pi 65.1 pi : : 63.8 bpi 63.8 pi

Crude rate of natural population change (per 1 000 inhabitants)

-5.4 -5.7 5.1 5.2 -0.7 -1.2 - 3.9 ep - 4.1 ep : : -2.6 bep - 2.8 ep

Life expectancy at birth, males (years)

73.8 b 73.9 b 74.8 76.4 b 69.9 70.5 b 67.5 ep : : : 78.6 bep 78.9 ep

Life expectancy at birth, females (years)

78.6 b 78.5 b 79.8 81.7 b 77.5 79.3 b 76.4 ep : : : 83.9 bep 84.1 ep

Labour market Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Economic activity rate for persons aged 20-64: proportion of the population aged 20-64 that is economically active (%)

Total 7) 76.8 78 63.1 64.0 68.7 w 70.8 w 58.4 w 59.1 w : : 80.0 80.3

Males 7) 83.3 84.2 82.7 83.3 80.3 w 81.5 w 61.9 w 60.9 w : : 85.2 85.5

Females 7) 70.5 71.8 43.5 44.6 57.9 w 60.5 w 55.3 w 57.5 w : : 74.8 75.2

Employment rates, aged 20- 64 (% of the population)

Total 7) 69.6 71.3 57.3 58.5 56.9 w 60.4 w 55.7 w 56.8 w : : 75.3 75.7

Males 7) 75.9 77.2 76.5 77.5 64.9 w 67.8 w 58.8 w 58.6 w : : 80.4 80.7

Females 7) 63.4 65.5 38.0 39.4 49.4 w 53.3 w 53.0 w 55.1 w : : 70.2 70.7

Persons aged 15-24 not in employment, education or training, % of the population in the age group

7) 12.4 12.9 22.4 22.9 21.0 w 17.5 w 13.8 w 13.5 w : : 9.2 9.2

22

Labour market (cont.) Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Persons aged 15-29 not in employment, education or training, % of the population in the age group

7) 15.2 14.9 25.8 25.9 26.9 w 24.1 w 23.1 w 21.9 w : : 11.3 11.2

Employment by main sectors

Agriculture, forestry and fisheries (%)

7) 8) 13.1 i 12.8 i 14.6 i 14.6 i 16.5 w 16.0 w 20.9 w 18.1 w : : 3.6 i 3.3 i

Industry (%) 7) 8) 23.5 i 23.0 i 21.3 i 20.7 i 12.2 w 12.9 w 14.4 w 13.4 w : : 17.4 i 17.2 i

Construction (%) 7) 8) 5.9 i 6.0 i 6.3 i 6.6 i 8.8 w 8.9 w 7.1 w 7.5 w : : 6.8 i 6.9 i

Services (%) 7) 8) 57.4 i 58.2 i 57.8 i 58.1 i 62.4 w 62.2 w 57.6 w 61.0 w : : 72.0 i 72.1 i

People employed in the public sector as a share of total employment, persons aged 20-64 (%)

: : : : 23.3 w 22.0 w 28.5 w 30.7 w : : : :

People employed in the private sector as a share of total employment, persons aged 20-64 (%)

: : : : 76.7 w 78.0 w 71.5 w 69.3 w : : : :

Unemployment rates (% of the labour force)

Total 7) 9) 9.5 8.6 9.4 8.8 16.4 w 13.9 w 4.6 w 4.0 w : : 6.1 6

Males 7) 9) 9.1 8.4 7.7 7.1 18.3 w 16.1 w 5.0 w 3.8 w : : 5.8 5.8

Females 7) 9) 9.9 8.9 12.7 11.8 14.0 w 11.1 w 4.2 w 4.1 w : : 6.4 6.2

Youth, aged 15-24 7) 25 23 17.5 16.4 34.5 w 28.9 w 11.5 w 9.8 w : : 14.6 15

Long-term (>12 months) 7) 9) 3.8 3.4 2.0 1.7 6.5 w 5.0 w 0.8 w 0.6 w : : 2.1 1.9

Average nominal monthly wages and salaries (EUR)

7) 10) 11) 12) 1 011 iw 1 156 iw 333 iw 491 iw 622 iw 669 iw 622 iw 727 iw 441 iw 494 iw : :

23

Education Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Public expenditure on education relative to GDP (%)

13) 3.4 piw 3.5 piw : 4.0 iw 3.7 iw 3.9 iw : : : : 4.7 d :

Participation in early childhood education (children aged 3 and over)

11) 71.6 b 79.5 bd 54.9 55 : : 98.9 w : 87.1 w 87.1 w 94.6 d 94.9 d

Participation in early childhood education (children aged 3 and over), males

11) 71.4 b 79.2 bd 55.3 55.3 : : 99.2 w : 87.3 w 87.3 w 94.5 d 94.8 d

Participation in early childhood education (children aged 3 and over), females

11) 71.8 b 79.8 bd 54.5 54.7 : : 98.6 w : 86.9 w 86.0 w 94.7 d 95.0 d

Low achieving 15-year-olds in reading

4) 11) 36.4 : 29.3 : : : : : 41.0 w : 26.2 :

Low achieving 15-year-olds in mathematics

4) 11) 43.1 : 38.7 : : : : : 42.4 w : 29.5 :

Low achieving 15-year-olds in science

4) 11) 35.1 : 24.7 : : : : : 34.0 w : 24.2 :

Early leavers from education and training: percentage of the population aged 18-24 with at most a lower secondary education and not in further education or training (%)

5.8 6.2 19.5 18.7 5.3 w 6.4 w 17.5 w 16.4 w : : 9.6 9.6

Male early leavers from education and training: proportion of men aged 18-24 with at most lower secondary education (at most ISCED 2011 level 2) who are not in further education or training

5.8 6.8 20.1 19.6 5.1 w 6.4 w 18.6 w 16.6 w : : 11.3 11.2

Female early leavers from education and training: proportion of women aged 18- 24 with at most lower secondary education (at most ISCED 2011 level 2) who are not in further education or training

5.9 5.7 19.0 17.8 5.4 w 6.5 w 16.4 w 16.1 w : : 7.7 7.9

24

Education Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Proportion of persons aged 25-64 having participated in education and training (last 4 weeks)

7) 6.1 5.5 7.4 8.0 1.7 w 1.6 w 2.2 w 2.9 w : : 12.8 13.5

Proportion of persons aged 25-64 having participated in education and training (last 4 weeks), men

7) 5.5 4.9 7.0 7.3 1.6 w 1.4 w 1.6 w 2.1 w : : 11.6 12.2

Proportion of persons aged 25-64 having participated in education and training (last 4 weeks), women

7) 6.7 6.1 7.8 8.6 1.8 w 1.7 w 2.7 w 3.6 w : : 14.0 14.7

Exposure of vocational education and training (VET) graduates to work-based learning (% of population aged 20-34)

21.4 21.0 : : : : : : : : 64.4 65.2

Percentage of the population aged 20-24 with at most lower secondary education, total

7) 14) 6.3 6.7 23.5 21.5 5.3 w 4.5 w 22.4 w 21.9 w : : 15.0 15

Percentage of the population aged 20-24 with at most lower secondary education, males

7) 5.9 7.1 24.6 22.4 4.3 w 4.1 w 22.5 w 22.2 w : : 17.5 17.4

Percentage of the population aged 20-24 with at most lower secondary education, females

7) 6.7 6.2 22.4 20.5 6.4 w 5.0 w 22.2 w 21.7 w : : 12.3 12.5

Percentage of the population aged 20-24 with upper secondary or post secondary non-tertiary education, total

7) 85.9 84.6 53.8 54.4 76.4 w 78.5 w 65.2 w 67.5 w : : 65.9 65.6

Percentage of the population aged 20-24 with upper secondary or post secondary non-tertiary education, males

7) 87.5 87.7 58.0 59.8 79.4 w 81.4 w 67.4 w 68.6 w : : 66.3 66.1

Percentage of the population aged 20-24 with upper secondary or post secondary non-tertiary education, females

7) 84.2 81.3 49.4 48.7 72.9 w 75.1 w 63.0 w 66.4 w : : 65.4 65.1

Percentage of the population aged 30-34 with tertiary education, total

7) 38.2 40.0 39.9 41.7 35.6 w 38.8 w 31.3 w 35.3 w : : 43.8 44.5

25

Education Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Percentage of the population aged 30-34 with tertiary education, males

7) 29.8 32.3 39.2 40.3 31.2 w 33.3 w 23.5 w 27.2 w : : 38.4 39.2

Percentage of the population aged 30-34 with tertiary education, females

7) 46.9 48.0 40.5 43.1 40.3 w 44.5 w 38.1 w 42.5 w : : 49.4 50

Share of individuals having at least basic digital skills (% of population aged 16-74)

33.6 : 33.1 : 34.5 w 36.3 w : : : : 55.6 :

Share of individuals having at least basic digital skills (% of population aged 16-74), males

35.5 : 36.8 : 33.5 w 35.9 w : : : : 56.7 :

Share of individuals having at least basic digital skills (% of population aged 16-74), females

31.8 : 29.4 : 35.4 w 36.6 w : : : : 54.5 :

26

National accounts Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Gross domestic product

In current prices (EUR million)

11) 13) 75 205 p 83 258 p 1 051 700

1 253 387

28 464 w

31 597 w

15 454 16 825 167 632 176 270 17 259 390

18 043 410

Per capita (EUR) 7) 11) 13) 11 350 p 12 640 p 11 860 14 140 7 661 w 8 541 w 6 360 7 000 : : 38 450 40 110

In purchasing power standards (PPS) per capita

11) 15) 18 600 p 20 593 p 25 721 27 621 : : 20 910 w

23 195 w

: : 38 366 39 985

In purchasing power standards (PPS) per capita, relative to the EU average (EU-27 = 100)

11) 15) 48.5 p 51.5 p 67.0 69.1 : : 34.9 ew 36.5 ew : : 100 100

Real (volume) annual rate of change, compared with the previous year (%)

11) 13) 15) 3.7 p 3.9 p 5.0 3.3 7.8 w 9.7 w 1.2 w 0.3 w 5.5 3.2 0.4 1.2

Gross value added by main sectors

Agriculture, forestry and fisheries (%)

13) 4.4 p 3.7 p 7.2 6.6 6.9 w 6.3 w 8.2 8.5 8.6 8.4 1.8 1.8

Industry (%) 13) 22.0 p 21.2 p 25.6 22.2 14.1 w 14.0 w 12.2 11.3 19.9 20 20.2 19.4

Construction (%) 13) 5.9 p 5.9 p 6.1 6.6 7.6 w 8.5 w 8.3 8.3 1.8 2 5.5 5.5

Services (%) 12) 67.8 pi 69.1 pi 60.9 i 64.7 i 71.4 w 71.2 w 71.3 i 72.0 i 69.7 i 69.6 i 72.5 i 73.4 i

Balance of payments Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Net (inward - outward) foreign direct investment (FDI) (million euro)

7) 11) 4 261.6 w

4 602.5 w

4 228.3 i 4 737.0 i 1 515.7 w

1 058.7 w

323.3 w 332.6 w 4 037.3 w

3 393.4 w

- 60 215.5 i

- 150 086.3 i

Net (inward - outward) foreign direct investment (FDI) (% of GDP)

11) 13) 15) 5.67 pi 5.55 pi 0.40 i 0.38 i 5.32 iw 3.35 iw 2.09 iw 1.98 piw 2.45 iw : - 0.35 i - 0.83 i

Net (inward - outward) foreign direct investment (FDI) in relation to EU-27 (million euro)

7) 11) 2 123.0 i 1 721.0 i 1 373.4 i 2 020.2 i 480.9 w 262.6 w : : 3 228.5 w

2 540.8 w

- 25 748.0 i

113 753.6 i

Net (inward - outward) foreign direct investment (FDI) in relation to EU-27 (% of GDP)

11) 13) 2.82 pi 2.07 pi 0.13 i 0.16 i 1.69 iw 0.83 iw : : 1.98 iw : - 0.15 i 0.63 i

Remittances as % of GDP 11) 13) 5.25 pi 4.58 pi 0.02 iw 0.01 iw 7.92 iw 6.40 iw 6.71 diw 5.66 dpiw

0.99 iw : 0.14 i 0.14 i

27

External trade in goods Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Share of exports to EU-27 countries in value of total exports (%)

11) 65.7 iw 64.4 iw 40.8 iw 41.9 iw 11.6 iw 8.7 iw 65.4 iw 67.3 iw 71.1 iw 64.4 iw : :

Share of imports from EU-27 countries in value of total imports (%)

11) 53.6 iw 53.1 iw 29.0 iw 32.0 iw 24.5 iw 27.1 iw 48.3 iw 50.2 iw 51.2 iw 50.5 iw : :

Trade balance (EUR million) 11) - 8 178 - 9 159 - 97 406 - 77 291 - 8 809 iw

- 9 544 iw

- 4 275 iw

- 5 099 iw

- 29 005 iw

- 32 214 iw

35 331 133 115

International trade in goods and services relative to GDP

Imports (% of GDP) 11) 13) 59.4 p 58.1 p 33.8 27.0 57.9 w 55.6 w 58.9 57.3 49.2 50 48.1 46.3

Exports (% of GDP) 11) 13) 55.1 p 53.6 p 31.9 27.6 49.3 w 47.8 w 35.1 31.6 28.3 29.7 51.7 50.4

Public finance Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

General government surplus (+) / deficit (-) (%)

11) 13) 16) : : : : - 2.3 w - 2.2 w - 5.1 ew - 3.9 ew - 19.5 w - 17.7 w -3.4 -3.1

General government debt (%) 11) 13) : : : : 38.8 w 35.6 w 35.4 ew 38.0 ew 83.3 w 91.1 w 80.5 80.7

28

Financial indicators Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Annual change in consumer prices (%)

11) 12.1 d 4.8 d 54.0 d 58.5 d 2.1 w 1.7 w 13.4 w 4.7 w 12.9 w 6.5 w 6.4 2.6

Total external debt, relative to GDP (%)

11) 13) 15) 17) 58.7 piw 58.6 piw 43.3 iw 38.1 iw 77.7 iw 76.3 iw 59.0 iw 58.7 piw 86.8 iw : : :

Value of reserve assets (including gold) (million euro)

11) 5 104.0 2 834.0 - 1 949.6 691.1 4 528.2 w

4 260.6 w

4 903.5 w

5 247.5 w

36 459.0 w

41 913.1 w

: :

International reserves - equivalence in months of imports

11) 6.7 iw 7.3 iw 4.4 iw 5.0 iw 3.3 iw 2.9 iw 6.5 iw 6.5 iw 5.3 iw 5.7 iw : :

29

Business Note Serbia Türkiye Georgia** Moldova*** Ukraine EU-27

2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Industrial production index (2021 = 100)

11) 104.8 107.7 106.1 106.5 : : 92.8 w 92.5 w 67.6 70.7 101.1 98.7

Infrastructure Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Density of railway network (lines in operation per thousand km²)

18) 38.2 iw 38.2 iw 14.6 i 14.6 i 16.0 iw 16.0 iw 34.0 iw 34.0 iw 32.7 iw : 47.7 i 47.7 i

Length of motorways (kilometres)

11) 963 999 3 726 3 796 271 358 0 0 15 : 76 515 :

Energy Note 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

Net energy imports in relation to GDP

13) 15) 4.6 pi 4.1 pi 4.7 i 3.6 i 1.1 iw 1.2 iw 6.0 iw 6.3 piw : : 3.2 i 2.6 i

Source: Eurostat and/or the statistical authorities of the enlargement countries

: = not available

b = break in time series

d = definition differs

e = estimated

p = provisional

i = Eurostat estimate

w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any assurance as regards their quality and adherence to EU statistical methodology ** = Data shown for Georgia exclude the occupied breakaway regions of Abkhazia and South Ossetia over which the government of Georgia does not exercise control.

*** = The data managed by the National Bureau of Statistics of the Republic of Moldova does not include data from the Transnistrian region over which the government of the Republic of Moldova does not exercise control, unless otherwise indicated.

Footnotes:

1) Bosnia and Herzegovina: The public sector includes NACE Rev. 2 Sections O, P and Q while the private sector includes other NACE Sections.

2) Albania: Public sector only.

3) Bosnia and Herzegovina: Since 2023, children who attended a preschool programme prior to enrolling in school and who did not regularly attend preschool are also included.

4) 2022 data instead of 2023.

5) Bosnia and Herzegovina: Consumer price inflation

30

6) Bosnia and Herzegovina: Based on IMF balance of payments manual, sixth edition.

7) Ukraine: Official statistics for 2022–2025 were not fully produced due to the martial law. It will gradually be produced and disseminated as defined by the State Statistics Service of Ukraine, taking into account the specific conditions of producing statistics during Russia’s war of aggression against Ukraine.

8) Georgia**: Since 2020 - NACE Rev.2, before 2020 - NACE Rev.1.1.

9) Georgia**: Persons aged 15 years and older.

10) Moldova***: Includes units with one and more employees.

11) Ukraine: Since 2014, data for Ukraine generally exclude the illegally annexed Autonomous Republic of Crimea and the City of Sevastopol and the territories which are not under control of the Ukrainian government.

12) Serbia: Wages and salaries paid to employees of legal entities and of unincorporated enterprises. Wages and salaries are obtained from administrative sources (tax administration records). Average earnings are calculated on the basis of the total amount of accrued earnings for the reporting month and the number of full-time equivalent (FTE) employees.

13) Georgia**: Based on 2008 SNA.

14) Georgia**: Persons without education are excluded.

15) Moldova***: Based on 2008 SNA.

16) Ukraine: Cash data (Government finance statistics manual 2014, IMF).

17) Serbia: Official external debt of the Republic of Serbia.

18) Moldova***: Including data from the Transnistrian region.

EN EN

EUROPEAN COMMISSION

Brussels, 4.11.2026 SWD(2026) 699 final

COMMISSION STAFF WORKING DOCUMENT

Ukraine 2026 Report

Accompanying the document

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

2026 Communication on EU enlargement policy

{COM(2026) 690 final} - {SWD(2026) 690 final} - {SWD(2026) 691 final} -

{SWD(2026) 692 final} - {SWD(2026) 693 final} - {SWD(2026) 694 final} - {SWD(2026) 695 final} - {SWD(2026) 696 final} - {SWD(2026) 697 final} -

{SWD(2026) 698 final} - {SWD(2026) 700 final}

1

Table of Contents 1. INTRODUCTION ............................................................................................................................ 3

1.1. Context .................................................................................................................................... 3

1.2. Main findings of the report ....................................................................................................... 4

1.3. State of play of the accession negotiations ............................................................................... 23

2. Cluster 1: The fundamentals of the accession process .................................................................... 23

2.1. Functioning of democratic institutions and public administration reform ................................... 23

2.1.1. Democracy ......................................................................................................................... 23

2.1.2. Public administration reform ............................................................................................... 26

2.2 Rule of law and fundamental rights ............................................................................................ 30

2.2.1 Chapter 23 - Judiciary and fundamental rights ............................................................... 30

2.2.2 Chapter 24 - Justice, freedom and security .................................................................... 49

2.3. Economic criteria ....................................................................................................................... 62

2.3.1. The existence of a functioning market economy ................................................................ 62

2.3.2. The capacity to cope with competitive pressure and market forces within the EU ............ 67

2.4. Public procurement, statistics and financial control ................................................................... 68

Chapter 5 - Public procurement ................................................................................................... 68

Chapter 18 - Statistics .................................................................................................................. 70

Chapter 32 - Financial control ...................................................................................................... 70

3. Good neighbourly relations and regional cooperation ...................................................................... 72

4. Security, defence and resilience ....................................................................................................... 73

5. Ability to assume the obligations of membership .............................................................................. 76

Cluster 2: Internal market ................................................................................................................. 76

Chapter 1 - Free movement of goods .......................................................................................... 76

Chapter 2 - Freedom of movement for workers ........................................................................... 77

Chapter 3 - Right of establishment and freedom to provide services .......................................... 77

Chapter 4 - Free movement of capital .......................................................................................... 78

Chapter 6 - Company law ............................................................................................................. 79

Chapter 7 - Intellectual property law ............................................................................................. 79

Chapter 8 - Competition policy ..................................................................................................... 80

Chapter 9 - Financial services ...................................................................................................... 81

Chapter 28 - Consumer and health protection ............................................................................. 82

Cluster 3: Competitiveness and inclusive growth ............................................................................. 84

Chapter 10 - Digital transformation and media ............................................................................ 84

Chapter 16 - Taxation ................................................................................................................... 86

Chapter 17 - Economic and monetary policy ............................................................................... 86

Chapter 19 - Social policy and employment ................................................................................. 87

Chapter 20 - Enterprise and industrial policy ............................................................................... 89

2

Chapter 25 - Science and research .............................................................................................. 90

Chapter 26 - Education and culture .............................................................................................. 91

Chapter 29 - Customs union ........................................................................................................ 92

Cluster 4: The green agenda and sustainable connectivity .............................................................. 93

Chapter 14 - Transport policy ....................................................................................................... 93

Chapter 15 - Energy ..................................................................................................................... 94

Chapter 21 - Trans-European networks ....................................................................................... 96

Chapter 27 - Environment and climate change ............................................................................ 97

Cluster 5: Resources, agriculture and cohesion ............................................................................. 100

Chapter 11 - Agriculture and rural development ......................................................................... 100

Chapter 12 - Food safety, veterinary and phytosanitary policy .................................................. 101

Chapter 13 - Fisheries and aquaculture ..................................................................................... 102

Chapter 22 - Regional policy and coordination of structural instruments................................... 103

Chapter 33 - Financial and budgetary provisions ....................................................................... 105

Cluster 6: External Relations .......................................................................................................... 105

Chapter 30 - External relations ................................................................................................... 105

Chapter 31 - Foreign, security and defence policy ..................................................................... 106

Annex I - Relations between the EU and Ukraine .......................................................................... 109

Annex II – Statistical annex ............................................................................................................ 111

3

1. INTRODUCTION1

1.1. CONTEXT

Ukraine has continued to face the consequences of Russia’s war of aggression, including a severe energy crisis during the first months of 2026 and daily attacks on civilian targets.

Ukraine has continued to progress on the path to EU accession since its application in 2022 and the formal opening of accession negotiations in June 2024. After concluding a bilateral screening of the EU acquis in September 2025, cluster 1 (fundamentals) was formally opened at the intergovernmental conference on 15 June, followed by cluster 6 (external relations) on 14 July 2026 as well as cluster 2 (internal market) and cluster 3 (competitiveness and inclusive growth) on 13 October 2026. The Commission has assessed all remaining clusters as ready to be opened. In April 2026, Ukraine adopted its National Programme for the adoption of the acquis (NPAA). Ukraine has remained committed to the EU integration reform agenda, in particular by continuing to demonstrate that its institutional framework for the fight against corruption is effective and that the specialised anti-corruption institutions continue to generally operate independently and effectively. The slowing down of legislative decision-making during the reporting period is a point of concern. However, since the end of the summer there has been increased focus on the reforms and actual implementation of policy conditionality under Ukraine Facility and Ukraine Support Loan. In October 2026 Ukraine and the Commission set up a joint Task Force to support Ukraine in accelerating progress on the interim benchmarks, which will advance essential rule of law and anti-corruption reforms.

Regular political and economic dialogue between the EU and Ukraine continued through the Association Agreement and the Deep and Comprehensive Free Trade Area, and the joint bodies under the agreement. This dialogue was further strengthened by the implementation of the Ukraine Facility, including its financial assistance and the Ukraine Plan indicators, which are linked to a set of targeted reforms across key sectors that promote growth, attract priority investments, and advance European integration.

Since the beginning of Russia’s war of aggression, the EU and its Member States have enabled the mobilisation of EUR 231.6 billion in support of Ukraine and its people. The recommendations in this report are aligned with the main priorities of the Ukraine Plan for the next 12 months and with the benchmarks set in the accession negotiations. Overall, the interaction between the commitments under the enlargement process and the Ukraine Plan works well, but further efforts are needed.

The EU-Ukraine joint security commitments signed in 2024 continue to guide the EU’s and Member States’ support for Ukraine’s security, resilience and defence. This support complements bilateral commitments between Ukraine and individual Member States.

The EU continues to fully support the independence, sovereignty and territorial integrity of Ukraine within its internationally recognised borders. Ukraine maintains a high level of alignment with the EU’s common foreign and security policy.

1.2. MAIN FINDINGS OF THE REPORT

1 This report covers the period from 1 September 2025 to 1 September 2026. It is based on input from a variety of

sources, including contributions from the government of Ukraine, EU Member States, European Parliament reports and information from various international and non-governmental organisations. It also includes the results of comparative assessments and indices produced by other stakeholders, in particular on the rule of law.

The report uses the following assessment scale to describe the state of play: early stage, some level of preparation, moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting period, it uses the following scale: backsliding, no progress, limited progress, some progress, good progress and very good progress. Where appropriate, interim steps have also been used.

4

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS

Democracy

The functioning of democratic institutions in Ukraine is generally stable despite Russia’s ongoing war of aggression and the restrictions imposed under martial law.

The general framework remains overall conducive to the organisation of democratic elections upon the lifting of martial law once circumstances allow, but it will require certain adjustments given the war-related challenges. The authorities strengthened the work on electoral reforms and set up a special parliamentary working group to prepare legislative proposals for post-war elections.

Parliament can exercise its powers, including overseeing the executive and participating in the legislative process, in an overall effective way despite the constraints of martial law. Further progress was achieved on parliamentary transparency and public engagement. However, the legislation on political parties still needs a comprehensive update, and no legislative initiatives have yet been developed on the rights of the parliamentary opposition.

The institutions in charge of EU integration are in place and actively involved in coordinating the accession process. The NPAA is the main document for planning and monitoring the fulfilment of Ukraine's obligations arising from the accession negotiations, together with the roadmaps on rule of law, public administration reform, functioning of democratic institutions, and the action plan on national minorities.

Ukraine’s government has continued to perform its functions effectively, prioritising security and defence, EU integration, digital transformation, economic recovery and reconstruction. The decentralisation reform should continue, maximising the potential of local government authorities and making tangible advances, in line with Ukraine’s efforts to fulfil the requirements for EU accession.

Ukraine has a vibrant and robust civil society, from service providers to policy actors to government watchdogs and human rights defenders. Civil society operates in an overall enabling environment. However, there were reported incidents of pressure on activists that should be investigated. The authorities took some positive steps in support of the volunteering sector, such as the adoption of the State Targeted Social Programme for the Development of Volunteering until 2030 and legislation simplifying long-term stay rules for foreign volunteers and humanitarian workers.

Public administration reform

Ukraine is moderately prepared in the area of public administration reform (PAR) and has made good progress, in particular by: (i) adopting the PAR and the public financial management system (PFM) strategies for 2026-2030, as well as the NPAA; (ii) completing the necessary steps to establish the EU-UA PAR sub-committe, (iii) adopting the law to improve and restart competitive recruitment and selection procedures, including strengthening integrity checks for management positions and other posts considered to be at high risk of corruption; (iv) developing the new civil service vacancy portal; (v) advancing implementation of the unified human resource management information system across all public administration bodies; (vi) making further progress on the digitalisation of public services; and (vii) further aligning secondary legislation with the Law on administrative procedure (LAP). Ukraine has demonstrated a good capacity in implementing PFM reforms, particularly in public investment management. This is reflected in: (i) the adoption of the medium-term plan for priority public investment for 2027-2029; (ii) stronger sectoral planning; (iii) a wider use of IT systems; and (iv) closer integration of investment planning into the annual budget cycle.

The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Ukraine should, in particular:

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→ in line with the Ukraine Plan, resume merit-based recruitment for all civil service posts through the unified state web portal of electronic services; finalise the countrywide roll- out and implementation of the human resources management information system;

→ clarify political responsibility for civil service policy development and implementation within the Cabinet of the Ministers; address recommendations of the Accounting Chamber’s audit report on the implementation of the salary reform;

→ complete legislative alignment and harmonisation with the LAP, particularly in the areas of taxation, customs, land relations, electronic public services and secondary legislation, and align all existing digital administrative procedures with the LAP.

Chapter 23: Judiciary and fundamental rights

Ukraine is between having some and a moderate level of preparation in the areas of the judiciary, the fight against corruption and respect for fundamental rights and made some progress. The ten priority reforms as agreed with the Ukrainian authorities on 10 December 2025 remain mostly outstanding.

Functioning of the judiciary

Ukraine is between having some and a moderate level of preparation in the functioning of the judiciary. Limited progress was made during the reporting period and certain delays occurred in advancing the reforms set out in the Rule of Law Roadmap. The selection of judges for the Constitutional Court of Ukraine (CCU) continued, and five internationally vetted members were appointed to the High Council of Justice (HCJ), securing its quorum. The Congress of Judges also appointed 30 new members to the Council of Judges (CoJ). For the new specialised administrative courts, an internationalised judge selection mechanism was put in place, and competitions are progressing. The High Qualification Commission of Judges (HQCJ) and its auxiliary body, the Public Integrity Council (PIC), advanced in selecting candidates for vacant judicial positions and the vetting of sitting judges; however, continued involvement of internationally nominated experts in the HQCJ is not yet legislated. Despite difficult circumstances, Ukrainian courts increased the number of cases considered in 2025. A number of legislative reforms for the judiciary are outstanding, including to ensure merit-based recruitment to managerial positions in the prosecution service, to revise the procedure for the selection and dismissal of the Prosecutor General, and to in strengthen nomination and integrity procedures at the Supreme Court with the temporary involvement of internationally nominated experts. A law to improve the enforcement of court decisions was approved. While a new justice strategy has not yet been adopted, significant efforts took place to coordinate the implementation of the Rule of Law Roadmap in a consultative manner.

The Commission’s recommendations from last year were partially met and remain valid. In the coming year, Ukraine should in particular:

→ accelerate the filling of judicial vacancies and the evaluation of the qualification (vetting) of sitting judges, with the involvement of the Public Integrity Council; improve the selection and integrity verification of Supreme Court judges and other high court judges by temporarily and meaningfully involving independent experts nominated by international partners; fill the remaining and upcoming vacancies in the Constitutional Court and High Council of Justice and improve the constitutional procedure; and improve the transparency and quality of the selection processes for judicial and prosecutorial self- governance bodies;

→ improve the selection and dismissal procedures for the Prosecutor General and repeal the provisions allowing for the transfer and appointment of prosecutors without competition, as well as those granting the Prosecutor General access to pre-trial investigations materials;

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→ urgently extend the temporary involvement of internationally nominated independent experts in the selection of members of the High Qualification Commission of Judges in line with the Ukraine Plan and of members of the High Council of Justice; operationalise the new specialised administrative courts; adopt legislation to improve the selection of management-level prosecutors; adopt legislation improving the disciplinary system for prosecutors and the capacity of the prosecutorial governance bodies; launch the criminal e-case management system modules and implement the roadmap for the e-judiciary system;

→ reform the legal profession by modernising governance, improving access to the profession, raising qualification and admission standards, and strengthening disciplinary and financial accountability. Advance the reforms of legal education and the National School of Judges.

Fight against corruption

Ukraine is between having some and a moderate level of preparation in the area of anti- corruption. Some progress was made, mostly because the specialised anti-corruption institutions – the National Anti-Corruption Bureau (NABU), the Special Anti-Corruption Prosecutor’s Office (SAPO), the High Anti-Corruption Court (HACC) – continued to deliver on their mandate and build a track record by stepping up investigations, prosecutions and final convictions in high-level corruption cases, including at the highest levels of government and the judiciary. These achievements, together with cumulative improvements in institutional capacity and the implementation of preventive measures over recent years, justify an improvement in the overall level of preparation. This continued operational effectiveness of the specialised anti-corruption institutions represents an important achievement that demonstrates the growing resilience of Ukraine’s anti-corruption framework. This resilience has also been supported by an exceptionally active civil society, whose sustained scrutiny and engagement have contributed to exposing corruption risks, promoting accountability and safeguarding the independence of anti-corruption institutions. The number of judges and administrative staff at the HACC was increased considerably and new permanent premises were allocated to the court. Ukraine made progress towards the ratification of the OECD Anti-Bribery Convention but has yet to adopt final legislation. A new anti-corruption strategy for 2026-2030 was developed by the NACP, but its adoption by Parliament is pending. Despite these improvements, the limited advancement in adopting structural legislative and institutional reforms recommended by the Commission remains a major concern, requiring urgent action by the authorities to ensure the sustainability and effectiveness of the anti-corruption framework. Anti-corruption institutions continued to report pressure from state institutions, law enforcement and security agencies, and their situation remains fragile overall. Despite some improvements in regulatory and corporate governance, corruption remains an issue in certain economic sectors, particularly energy, defence and construction.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ further consolidate the track record on corruption cases, including the seizure and confiscation of criminal assets; strengthen NABU’s and SAPO’s autonomy in investigating Members of Parliament without prior approval by the Prosecutor General; expand NABU’s jurisdiction to cover high-risk positions and adopt a law ensuring anti- corruption bodies’ access to high-quality forensics, in line with the Ukraine Plan; introduce robust safeguards against interference with the work of NABU and SAPO and circumvention of their exclusive jurisdiction; expand the scope of declarants and improve the procedures for the verification of asset declarations with a focus to detect and confiscate unexplained wealth effectively; ensure timely selection and appointment of a new head and deputy head of SAPO.

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→ in line with the Ukraine Plan, adopt amendments to the Criminal Procedure Code to address procedural impediments in criminal proceedings; eliminate automatic case closures and revise statutes of limitations in line with European standards; adopt legislative amendments to enable single-judge adjudication of civil and administrative cases in the HACC;

→ in line with the Ukraine Plan, adopt an ambitious anti-corruption strategy and state anti- corruption programme; ensure that identified corruption risks in vulnerable sectors (such as energy, defence, procurement, construction and land management, justice and law enforcement) are reduced effectively in national anti-corruption and relevant sectoral strategic frameworks.

Fundamental rights

The overall framework for fundamental rights and its enforcement is largely in place. The government has maintained its overall respect for fundamental rights and shown its commitment to protecting them.

Ukraine has taken some steps to implement key reforms, such as legislation to protect persons belonging to national minorities, and made progress on the deinstitutionalisation of care for children towards family and community-based care. The institution of the Military Ombudsman was established to protect the rights of military personnel. However, several recommended reforms are still delayed, such as developing support systems for persons with disabilities, launching data protection reform, adopting legislative amendments criminalizing hate crimes, and adopting legislation on civil partnerships. Overall, Ukraine should continue ensuring that restrictions imposed temporarily under martial law comply with the principles of necessity and proportionality, while continuing progress in aligning with the EU acquis.

The Commission’s recommendations from last year were only partially met and remain valid. In the coming year, Ukraine should in particular:

→ ensure consistent implementation of the revised Action Plan for the protection of the rights of people belonging to national minorities;

→ advance penitentiary reform by adopting legislation to address in particular torture and ill- treatment; adopt legislation on the Ombudsperson's role in full alignment with the Venice and Paris Principles; and adopt legislation on data protection, procedural rights of suspects and accused persons and victims’ rights in full compliance with the EU acquis;

→ continue the deinstitutionalisation reform for care of persons with disabilities and older people;

Freedom of expression and media freedom

Ukraine is between having some and a moderate level of preparation in the area of freedom of expression. Despite the constraints resulting from the Russian war of aggression, Ukraine has made some progress in this area, particularly on the financial independence of Suspilne, the public broadcaster as well as journalists’ access to information in parliament, which was expanded with the live streaming of plenary and committee sessions. Overall, Ukraine should continue its efforts to maintain and gradually strengthen a transparent, pluralistic and independent media landscape, ensuring that restrictions imposed temporarily under martial law comply with key public rights and interests, such as access to information and media freedom.

The Commission’s recommendations from last year were partially met and remain valid. In the coming year, Ukraine should in particular:

→ continue ensuring the safety and independence of journalists and respect their public information role; investigate promptly, independently and effectively cases of direct

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intimidation and harassment as well as indirect forms of pressure against journalists and media outlets;

→ ensure adequate funding for the media regulator and its functional independence;

→ maintain adequate funding for the public service broadcaster, while ensuring that content produced by publicly funded media is representative of Ukraine’s political and societal pluralism.

Chapter 24: Justice, freedom and security

Ukraine is between having some and a moderate level of preparation in the field of justice, freedom and security and made some progress during the reporting period. In particular, Ukraine conducted a serious and organised crime threat assessment (SOCTA) covering 2021-2024 and continued implementing the overarching strategic plan on law enforcement reform (OAS AP). However, the pace of reforms has been slow, and many reforms have been delayed. Ukraine still needs to demonstrate a strong, consistent approach to preventing and combating corruption in law enforcement agencies.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Ukraine should:

→ in line with the Ukraine Plan, make tangible progress on the comprehensive reform of the State Bureau of Investigation (SBI) by entry into force of the lawn to reform the SBI;

→ make tangible progress in implementing the overarching strategic plan on law enforcement reform (OAS AP), including adopt the law on the delineation of powers, functions and responsibilities of law enforcement agencies; create an effective system for cooperation and coordination between law enforcement agencies; make tangible progress in reforming the National Police of Ukraine (NPU), including by adopting legislation to introduce competitive, transparent and merit-based selection procedures for NPU senior management, putting in place a robust integrity framework, strengthening disciplinary mechanisms and internal control systems, and improving public oversight; adopt the new integrated border management (IBM) strategy with an action plan incorporating measurable implementation indicators.

Fight against serious and organised crime

Ukraine is between having some and a moderate level of preparation in the fight against serious and organised crime and made some progress, in particular in the re-attestation and certification of Economic Security Bureau (ESBU) staff. In addition, the leadership selection of the head of the Asset Recovery and Management Agency (ARMA) and the independent external assessment of the agency are ongoing. Ukraine continued active international cooperation in the field of law enforcement, and there were several successful joint operations between Ukraine and EU Member States. Ukraine did not make progress in aligning its legislation with the EU acquis on the fight against serious and organised crime. Ukraine has not fully implemented the comprehensive action plan to combat organised crime based on the results of 2019-2022 SOCTA. The use of financial investigations, asset freezing and confiscations increased but remains limited overall. The creation of registers of bank accounts of individuals and of beneficial owners of trusts remains pending. Interagency cooperation remains problematic, and there is widespread interinstitutional conflict between law enforcement agencies and other agencies involved in the fight against organised crime.

The Commission’s recommendations from last year were only partially implemented and therefore remain largely valid. In the coming year, Ukraine should in particular:

→ in line with the Ukraine Plan, finalise the re-attestation of ESBU staff and make tangible progress in further strengthening the ESBU; finalise the selection process of the head of ARMA and begin implementing the recommendations from the agency’s independent external assessment; and set up a register of accounts and individual bank safes of

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natural persons and ensure the relevant authorities have access to it, in line with the EU acquis;

→ adopt and start implementing the new 2026-2030 strategy to combat organised crime on the basis of the 2021-2024 SOCTA; adopt and start implementing the Financial Investigation Strategy and the 2026-2030 Asset Recovery Strategy; formally put in place the permanent national coordinator to fight organised crime and strengthen the institutional and operational capacities of law enforcement agencies and other relevant bodies, including by institutionalising the SOCTA methodology across relevant agencies.

→ make tangible progress in preventing and fighting small arms and light weapons trafficking, particularly by adopting the law on the acquisition and possession of firearms for civilians in line with EU acquis, adopting the roadmap to fight against trafficking of firearms and other small arms and light weapons; and integrating all relevant agencies which have competences on firearms within the National Firearms Focal Point.

ECONOMIC CRITERIA

The existence of a functioning market economy

Ukraine has some level of preparation and has made some progress in establishing a functioning market economy. Macroeconomic stability remained severely affected by the war, resulting in slower economic growth despite sound policymaking, strong international financial assistance, and private sector. Some steps were taken to strengthen domestic revenue mobilisation and public financial management. The National Bank of Ukraine continued to preserve monetary and foreign exchange market stability, while gradually easing foreign-exchange restrictions. Despite progress, revenue mobilisation is still constrained by undeclared work, tax avoidance, and delays in key tax policy reforms. The business environment still suffers from severe labour shortages, infrastructure damage, high energy costs, and high administrative burdens on firms, particularly SMEs. The state’s footprint in the economy remains significant, including through state-owned banks.

The Commission’s recommendations from last year were partly implemented. In the coming year Ukraine should, in particular:

→ ensure continued implementation of the Ukraine Support Loan conditionality, including macro-financial assistance, to strengthen revenue mobilisation, improve the sustainability and effectiveness of public expenditure, and enhance public financial management; improve fiscal transparency through the timely publication of general government data, including comprehensive defence sector data; continue to pursue policies supporting macroeconomic and financial stability, including by implementing the Financial Sector Development Strategy roadmap;

→ improve the regulatory environment and reduce administrative burdens by implementing the Action Plan on Deregulation; improve the business environment and market competition by combating corruption and informality, promoting antitrust enforcement, and reducing the state footprint in the economy by progressing on the implementation of the State Ownership Policy in line with OECD standards, notably on corporatisation and professionalisation, while safeguarding the independence of decision-making by all state-owned enterprise (SOE) supervisory boards;

→ continue facilitating the labour market integration of displaced persons and war veterans, while intensifying efforts to reduce informality and promote formal employment, including by reforming the simplified tax system, modernising the Labour Code and strengthening labour inspections.

The capacity to cope with competitive pressures and market forces within the EU

Ukraine is at some level of preparation and has made good progress in developing its capacity to cope with competitive pressure and market forces within the EU. Education

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reforms continued, including in higher education, preschool education, and vocational education and training. Innovation capacity remained constrained by low R&D spending but benefited from technological developments linked to the expansion of domestic defence production. Repair and reconstruction of the energy network continued, with increasing focus on decentralised electricity generation. Public investment management improved significantly, with stronger sectoral planning, a wider use of IT systems, and closer integration of investment planning into the budget cycle. Agriculture and industry remained affected by the destruction of assets, labour shortages, and supply-chain disruptions, while services, ICT, and defence-related manufacturing increased their relative importance. Ukraine remained relatively open to trade, although the trade-to-GDP ratio declined, partly reflecting weak agricultural production.

The Commission’s recommendations from last year were addressed. In the coming year Ukraine should, in particular:

→ continue supporting the repair, rehabilitation, and building of infrastructure, in particular energy generation capacity, including from decentralised renewable sources;

→ continue implementing the public investment management reform, in particular by adopting sectoral strategies that include the main investment goals and priorities by sector;

→ continue improving the quality, accessibility, and labour-market relevance of education, including vocational education and training; expand upskilling and reskilling opportunities for adults and advance the implementation of the Innovation Strategy to address skills shortages, support reconstruction, and strengthen productivity growth.

Chapter 5 - Public procurement

Ukraine is between having some and a moderate level of preparation in the area of public procurement. Some progress was made by implementing the Strategy for Reforming the Public Procurement System for 2024-2026. The new Law on public procurement was adopted on 27 May 2026, which further aligned the legislative framework with the EU acquis.

The Commission’s recommendations from last year were only partially met. In the coming year, Ukraine should in particular:

→ in line with Ukraine Plan, align all legislation on public procurement, including utilities, concessions, public-private partnerships, and defence and security procurement, with the EU acquis, ensuring EU economic operators are able to remain established in the EU in the context of the public-private partnerships, in line with the Deep and Comprehensive Free Trade Area (DCFTA) and the EU acquis on public procurement;

→ enhance e-procurement functionality, including developing procurement procedures and tools that comply with EU standards, improve e-contracting in the Prozorro system and reduce the number of procurements outside of Prozorro;

→ work on the implementation and, if needed, the adjustment of the new public procurement strategy for 2027-2030, focusing on closing remaining legislative gaps and issues related to administrative, operational and institutional capabilities at all levels, including on financial control, corruption prevention and review mechanisms, as well as focusing on effective implementation and enforcement.

Chapter 18 - Statistics

Ukraine has some level of preparation in the area of statistics and has made some progress on statistical reporting and surveys.

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Ukraine should:

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→ gradually increase the production, dissemination and transmission of high-quality statistics to Eurostat, in particular macroeconomic statistics;

→ conclude a memorandum of understanding between the State Statistical Service of Ukraine, the National Bank and the Ministry of Finance and set up a working group on macroeconomic statistics;

→ adopt legislation to ensure the State Statistical Service of Ukraine’s full professional independence, its central role in shaping state policy on statistics and its full access to administrative and privately held data.

Chapter 32 - Financial control

Ukraine has some level of preparation in the area of financial control. The country made some progress in strengthening public internal financial control, in particular by revising the definition of internal audit in line with the Global Internal Audit Standards and setting up audit committees in key budget spending units.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should, in particular:

→ improve the effectiveness of public internal financial control by implementing the Global Internal Audit Standards, strengthening the institutional role and operational capacity of the Central Harmonisation Unit in the Ministry of Finance, and supporting the set-up and operation of audit committees in key budget spending units. Continue implementing managerial accountability and risk management practices across all line ministries and agencies, including at regional level;

→ further strengthen the cooperation on anti-fraud, in particular with OLAF and EPPO;

→ strengthen the Accounting Chamber of Ukraine’s (ACU) institutional and financial independence and administrative capacity, including by operationalising the ACU Board, expanding financial audit coverage based on strategically significant public expenditure, and improving performance audit practices, as recommended in the Ukraine Facility Audit Board report.

CLUSTER 2: INTERNAL MARKET

Chapter 1 - Free movement of goods

Ukraine is between a moderate and a good level of preparation in the area of free movement of goods,and good progress was made in aligning with the EU acquis with the adoption of the Laws on accreditation of conformity assessment bodies and on market surveillance as well as on a technical regulation on machinery, which paves the way for the possibility to start negotiating an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA).

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Ukraine should:

→ make progress in aligning with the EU acquis on harmonised products, especially non- road mobile machinery approval and emissions, motor vehicles, good laboratory practices, drug precursors, chemical labelling and packaging, detergents and fertilising products;

→ start screening to identify gaps and make progress in ensuring compliance with Articles 34-36 of the Treaty on the Functioning of the European Union and relevant case law of the Court of Justice of the European Union (CJEU) in order to eliminate quantitative restrictions on the free movement of goods in the non-harmonised area;

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→ continue its efforts to join the EU standardisation and metrology bodies, such as the European the Committee for Standardization (CEN), the European Committee for Electrotechnical Standardization (CENELEC), the European Telecommunications Standards Institute (ETSI) and the European Association of National Metrology Institutes (EURAMET).

Chapter 2 - Freedom of movement for workers

Ukraine isat an early stage of preparation on the freedom of movement for workers. Limited progress was made, primarily through the adoption of the Employment Strategy 2030, which includes, among others, some measures for Ukraine’s participation in the European Employment Services (EURES), upon accession.

The Commission’s recommendations from last year were only partially implemented and therefore remain valid. In the coming year, Ukraine should in particular:

→ align national legislation with the EU acquis on free movement of workers, including access for EU citizens to the labour market and equal treatment of EU workers;

→ conclude agreements on social security coordination and healthcare insurance with EU Member States;

→ implement the newly adopted Employment Strategy 2030 with a focus on free movement of workers and advance preparations for joining EURES upon accession.

Chapter 3 - Right of establishment and freedom to provide services

Ukraine has some level of preparation on the right of establishment and freedom to provide services. Limited progress was made, notably by developing a unified register of qualifications and establishing quality standards for universal service provision.

The Commission’s recommendations from last year were only partially implemented, and therefore, remain mostly valid. In the coming year, Ukraine should in particular:

→ take measures towards eliminating existing restrictions for the provision of services, using the possibilities provided for by the Association Agreement and initiate alignment with the EU Services Directive;

→ adopt the Law on amendments in the field of postal communications, which aims to further align with the EU postal acquis, including Regulation (EU) 2018/644 on cross- border parcel delivery services;

→ continue progress in aligning with the EU acquis on the mutual recognition of professional qualifications.

Chapter 4 - Free movement of capital

Ukraine is between having some and a moderate level of preparation in the area of the free movement of capital. Limited progress was made through the gradual relaxation of some foreign exchange restrictions and continued preparation for alignment with the EU acquis on payment services. Delays are observed in the adoption of legislation relevant to Ukraine’s accession to the geographical scope of the SEPA schemes, including on anti- money laundering and countering the financing of terrorism.

The Commission’s recommendations from last year were not fully implemented and remain valid. In the coming year, Ukraine should in particular:

→ continue progress towards the liberalisation of capital movements, and as far as the circumstances allow, gradually remove the additional restrictions introduced under martial law;

→ advance alignment with the Payment Services Directive 2, the SEPA Regulation, the Cross-Border Payments Regulation 2 and the E-Money Directive 2;

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→ make progress in the fight against money laundering and terrorist financing by adopting legislation to ensure the operational independence, autonomy, and adequate capacity of the Financial Intelligence Unit (FIU), including through a transparent, competitive and merit-based selection procedure for its Head; as well as by establishing and operationalising the registersof bank accounts of individuals and beneficial owners of trusts, with access by competent authorities in line with the EU acquis, and by further aligning provisions on politically exposed persons with the EU acquis.

Chapter 6 - Company law

Ukraine has some level of preparation in the field of company lawand made limited progress by modernising the Unified State Register, moving closer to compatibility with business registers interconnection system (BRIS).

The Commission’s recommendations from last year were only partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ continue aligning with the EU acquis, including by putting in place a legal framework for the nullity of limited liability companies, joint-stock companies, cross-border mergers, divisions and conversions, takeover bids, and shareholders’ rights, in particular through the adoption of the laws on harmonisation of company legislation; in the area of corporate governance, improve the governance of state-owned enterprises in line with the Ukraine Plan and ensure any update of the national Corporate Governance Code is anchored in the EU acquis;

→ continue aligning with the EU acquis concerning transparency requirements, corporate governance, accounting and statutory audits, including by adopting and implementing the pending legislation in these areas;

→ continue aligning with the EU acquis on digital tools and processes in company law, including interoperability with BRIS, and further develop the Unified State Register, which is the technological solution to enable the full online registration of companies and branches, the full online filing and disclosure of company information, and public access to companies’ financial statements through the business register.

Chapter 7 - Intellectual property law

Ukraine has some level of preparation in the area of intellectual property law. Limited progress was made.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ address the functioning of collective management organisations, including through their accreditation;

→ further improve the industrial property rights enforcement, in particular through adoption and implementation of new legislative alignment of customs procedures with the EU acquis (ensure well-functioning customs registers of intellectual property rights, border enforcement mechanisms, and enhanced inter-institutional cooperation and cooperation between customs authorities and rights holders);

→ adopt the laws on industrial property rights, including on trade secrets, trademarks, and patents; adopt the intellectual property strategy, and continue alignment with the EU acquis in all relevant areas.

Chapter 8 - Competition policy

Ukraine has some level of preparation in the area of competition policy. Limited progress was made in the reporting period, in particular the adoption of some secondary legislation on State aid and by updating the inventory of state aid measures.

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The Commission’s recommendations from last year were only partially implemented and therefore remain valid. In the coming year, Ukraine should in particular:

→ in line with the Ukraine Plan, amend the Law on State aid to further align it with the EU acquis and lift the suspension of the application of State aid control;

→ make further progress in finalising a reliable and comprehensive inventory of existing State aid measures;

→ in line with the Ukraine Plan, take further steps to align services of general economic interest / public service obligations (PSO) with the EU acquis, including the structural separation of accounts between PSO and non-PSO activities in key state-owned enterprises.

Chapter 9 - Financial services

Ukraine is between having some and a moderate level of preparation in the field of financial services. Good Progress was made in the reporting period, in particular through continued alignment of banking regulation with the EU acquis, publication of the 2025 banking resilience assessment, adoption of legislation aiming to align with the EU acquis on securitisation and covered bonds, as well as further strengthening of supervisory frameworks for non-bank financial institutions and capital markets.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ continue alignment with the EU acquis on banking regulation and supervision (including the Capital Requirements Regulation and Directive), bank recovery and resolution and on deposit guarantee schemes, and adopt legislation regarding requirements on confidentiality and professional secrecy in line with the EU acquis;

→ continue aligning legislation and supervisory practices with the EU acquis on insurance and occupational pensions, investment firms, investment funds, and financial market infrastructures. In particular, adopt legislative amendments to align with the Solvency II Directive;

→ continue aligning legislation with the EU acquis on securities and capital markets, financial market infrastructure and digital finance, including on digital operational resilience, while further strengthening the independence, governance, and institutional capacity of the National Securities and Stock Markets Commission (NSSMC).

Chapter 28 - Consumer and health protection

Ukraine is between having some and a moderate level of preparation in the area of consumer and health protection. Over the reporting period, some progress was made by Ukraine in adopting legislation aimed at aligning with the EU acquis on market surveillance and on veterinary medicinal products.

The Commission’s recommendations from last year were partially implemented and therefore remain valid. In the coming year, Ukraine should in particular:

→ adopt the Law on general safety of non-food products in order to align with the EU acquis on general product safety;

→ adopt the secondary legislation necessary to complete the alignment with the EU acquis on medicinal products for human and veterinary use;

→ adopt the Law on patients’ rights in cross-border healthcare.

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH

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Chapter 10 - Digital transformation and media

Ukraine has a good level of preparation in the field of digital transformation and media. In the reporting period, it made good progress, in particular by joining the EU’s ‘Roam Like at Home’ area, advancing digital identity and trust services and strengthening cyber resilience.

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Ukraine should in particular:

→ ensure that independent telecommunications and media regulators, as well as central executive bodies in the field of electronic communications, have adequate funding and human resources to fulfil their mandates;

→ align national legislation with the EU 5G Cybersecurity Toolbox and fully implement the Protocol of Intent on 5G Security, including by enacting provisions to exclude high-risk suppliers from 5G auctions;

→ continue further aligning national legislation with the European Digital Identity Framework.

Chapter 16 - Taxation

Ukraine is between having some and a moderate level of preparation in the field of taxation. Good progress was made, in particular by amending the Tax Code on value added tax (VAT) and excise duties.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ further align national legislation with the EU acquis on the common system of VAT and on excise duties, especially on procedures, rates and exemptions, and continue implementing the National Revenue Strategy, in particular by reforming the simplified tax system;

→ further align with the Anti-Tax Avoidance Directive and the Directive on Administrative Cooperation in the field of taxation;

→ continue strengthening the administrative and operational capacity of the tax administration, in particular by developing IT systems and ensuring their interoperability with the IT systems at EU level.

Chapter 17 - Economic and monetary policy

Ukraine is moderately prepared in the field of economic and monetary policy and made some progress in returning to an inflation-targeting regime, gradually easing foreign exchange restrictions, and improving the medium-term budgetary framework.

The Commission’s recommendations from last year were partially implemented. In the coming year, Ukraine should in particular:

→ advance the National Bank of Ukraine’s (NBU) Strategy for easing foreign exchange restrictions, transitioning to greater exchange rate flexibility and returning to inflation targeting;

→ strengthen the legal framework to ensure the independence of the NBU in line with the EU acquis, and to fully comply with the monetary financing prohibition when martial law is lifted;

→ continue strengthening fiscal sustainability analysis by increasing the capacity to prepare long-term fiscal projections for the pension system, while advancing towards the set-up of an independent fiscal institution to monitor and assess government forecasts.

Chapter 19 - Social policy and employment

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Ukraine remains at an early stage of preparation in the field of social policy and employment. Some progress was achieved over the reporting period with the adoption of the Employment Strategy 2030, the entry into force of the basic principles of housing policy legislation in line with the Ukraine Plan, the adoption of the law on basic social assistance and the appointment of a new president to the National Tripartite Social and Economic Council (NTSEC).

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Ukraine should in particular:

→ adopt new framework legislation for labour relations in line with the EU acquis and, building on the restarted NTSEC, further develop an enabling environment for bipartite and tripartite social dialogue and strengthen the capacity of social partners;

→ adopt legislation on occupational safety and health in line with the Ukraine Plan and ensure labour inspection systems are strengthened;

→ continue reforming the social benefits system and further align national legislation with the EU acquis on non-discrimination and equality between women and men in employment and social policy.

Chapter 20 - Enterprise and industrial policy

Ukraine is between having some and a moderate level of preparation in the area of enterprise and industrial policy and has made some progress by continuing implementation of the Strategy for the Recovery, Sustainable Development, and Digital Transformation of Small and Medium-Sized Enterprises until 2027 and by endorsing the 2026-2027 Roadmap under the Critical Raw Materials Act.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should:

→ start working on a national industrial policy, in line with the EU’s main principles in the field, and increase coordination across all the underlying policy areas;

→ in line with the Ukraine Plan commitments, align national legislation with the principles of the Late Payment Directive;

→ building on the 2026-2027 Critical Raw Materials Roadmap in line with the EU acquis, continue progress on decarbonisation and digitalisation and further improve the National Geological Portal to combine all geological registers, catalogues and GIS (geographic information system) interactive maps in a single online solution, and make progress in developing the project pipeline.

Chapter 25 – Science and research

Ukraine is moderately prepared in the field of science and research and has made good progress. This was done through its active participation in Horizon Europe, adoption of new legislation to improve support for researchers and development of innovation activities. Additionally, the European Research Area (ERA) roadmap for 2025-2027 was adopted, and regional teams and preparations for entrepreneurial discovery processes to develop Smart Specialisation Strategies were created.

The Commission’s recommendations from last year were largely implemented. In the coming year, Ukraine should:

→ strengthen competitive funding for research in line with Horizon Europe best practices, including by consolidating the role and independent funding of the National Research Foundation;

→ take steps to implement the European Research Area roadmap for 2025-2027;

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→ take stock of the Entrepreneurial Discovery Process (EDP) conducted in selected regions and advance towards the design and approval of Smart Specialisation Strategies at regional level.

Chapter 26 – Education and culture

Ukraine is moderately prepared in education and culture. Good progress was made through approval of: (i) the new state standard for preschool education; (ii) the updated procedure for inclusive education in schools; (iii) the updated standards and curricula in primary education; (iv) the standard for supervisory boards in vocational education and training (VET) institutions; (v) the recommendations for the network of vocational and specialised pre-higher education institutions; (vi) the State Target Social Programme ‘Youth of Ukraine’: Generation of Resilience 2030; (vii) adoption of the Law on academic integrity; and continued implementation of the Strategy for the Development of Ukrainian Culture 2025-2030.

The Commission’s recommendations from last year were largely implemented. In the coming year, Ukraine should, in particular:

→ adopt the Law on adult education;

→ complete preparations for the nationwide introduction of specialised upper secondary education;

→ adopt secondary legislation required by the Law on vocational education.

Chapter 29 – Customs union

Ukraine has a good level of preparation with regard to the Customs Union and made good progress over the last year. In particular, the new Head of the State Customs Service was appointed following an independent selection process, substantial progress was made in the adoption of the new Ukrainian Customs Code, in line with the Union Customs Code and an updated version of the national IT Strategy for Customs Digitalisation has been approved.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ adopt the new Ukrainian Customs Code in line with the Union Customs Code, advance developing of related secondary legislation and continue preparations for its implementation, as well as continue the alignment to take account of the progressive application of the new Union Customs Code;

→ continue implementing the updated Strategic Plan for the Digital Development of the State Customs Service until 2030. The implementation should be granted with adequate budget line and pool of experts. Priority focus should be given to the national import system and IT systems required for full interoperability with the EU customs digital environment;

→ in order to improve administrative capacity, complete the reform of the State Customs Service, in accordance with the new Ukrainian Customs Code when enacted.

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY

Chapter 14 - Transport policy

Ukraine has some level of preparation in the field of transport policy and made some progress, in particular through the adoption of the Law on safety and interoperability of railway transport, the progress with secondary legislation on road transport as well as its removal from the blacklist of the Paris Memorandum of Understanding on Port State Control.

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The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ in line with the Ukraine Plan, adopt the primary legislation setting out a public service obligation (PSO) framework for the organisation of socially important passenger rail transport and its institutional oversight, approve the action plan for the phased introduction of competition in the rail freight and passenger sectors and make progress on the regulatory alignment with the EU rail market acquis;

→ in line with the Ukraine Plan, adopt the Law on merchant shipping and shipping on inland waterways and adopt new rules on the provision of port services and common rules on the financial transparency of ports;

→ further align the social rules and market rules for road transport with the EU transport acquis, strengthen the enforcement of haulage market rules and traffic safety measures, and set up independent inspection and investigation bodies for rail, road and waterborne transport and make progress with the introduction of periodical roadworthiness testing for all M and N category vehicles.

Chapter 15 - Energy

Ukraine has a good level of preparation in the field of energy. Good progress was made during the reporting period in partially aligning with the Electricity Integration Package, designating the Nominated Electricity Market Operator (NEMO), adopting permitting procedures for RES investments, and taking significant steps to improve corporate governance in energy state-owned enterprises.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming period, Ukraine should in particular:

→ accelerate energy market reforms: continue the gradual removal of the wholesale electricity price caps; start working on setting up a mechanism to support vulnerable energy consumers and adopt a roadmap to gradually liberalise gas and electricity prices in line with the Ukraine Plan; continue adopting secondary legislation, submit for verification and implement the Electricity Integration Package; adopt legislation to change the indirect taxation regime for electricity market participants to support market coupling;

→ prioritise the energy transition by focusing on renewable energy (RES) and energy efficiency: resolve the issue of debt settlement for RES producers; lift the moratorium on raising heat and hot water tariffs; and set minimum energy efficiency performance levels for buildings;

→ further improve governance in the energy sector: building on the completion of supervisory boards and the revision of charters of major state-owned energy companies, further align with OECD standards on corporate governance; in line with the Ukraine Plan, adopt legislation to further strengthen the energy regulator’s independence and build a track record on fair and transparent decision-making relating to implementation of the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT).

Chapter 21 - Trans-European networks

Ukraine has some level of preparation in the field of trans-European networks (TENs). Some progress was achieved during the reporting period, primarily through the implementation of several road and rail projects supported by Connecting Europe Facility (CEF).

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, the country should in particular:

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→ continue prioritising planning and implementing critical energy and transport infrastructure projects, including synchronisation with neighbouring countries; ensure better connections with the EU through deployment of efficient trans-European transport network (TEN-T), with particular focus on integrating railway systems into the EU standard gauge network and upgrading border crossing points;

→ ensure timely implementation of projects funded by the CEF that support the long-term integration of Ukraine’s transport systems with those of the EU, do utmost to ensure that all conditions enable this timely implementation, in particular by closing the financing gap to avoid any delays in the execution of works.

→ further align with and implement the TEN-T - through the deployment of EU standard gauge on the main priority axis in priority on the Poland-Lviv corridor which is essential for resilience, economy and security - and the trans-European networks for energy (TEN- E): accelerate alignment with the new TEN-T and TEN-E Regulations, improve the permitting process for TEN-E projects.

Chapter 27 - Environment and climate change

Ukraine has some level of preparation in the field of environment and climate change and made some progress in the reporting period. In the area of the environment, Ukraine made progress in waste management and nature protection through the adoption of the Circular Economy Strategy and the Biodiversity Strategy along with their respective action plans, as well as in water quality and industrial pollution through the adoption of secondary legislation. Ukraine made advancements in the area of climate change, where the Nationally Determined Contribution (NDC) under the Paris Agreement for 2035 and a new Long-Term Low Emissions Development Strategy were adopted.

The Commission’s recommendations from last year were only partially implemented and therefore remain mostly valid. In the coming year, Ukraine should in particular:

→ continue strengthening the responsible authorities with clearly defined competencies, adequate staffing and sufficient technical expertise; ensure effective implementation and mainstreaming of environmental and climate policies; focus on the alignment and implementation of horizontal environmental legislation in line with the EU acquis, in particular on the application of environmental impact assessments (EIAs) and strategic environmental assessments (SEAs) for all relevant projects, plans and programmes; ensure public participation and access to justice;

→ increase the level and coverage of carbon pricing as a stepping stone to entering the EU Emission Trading System (ETS); revise the carbon tax; extend the monitoring, reporting, verification and accreditation framework (MRVA) to additional sectors, including road transport and buildings; ratify the Kigali Amendment to the Montreal Protocol; and adapt national legislation to align with EU standards on fluorinated gases and ozone-depleting substances;

→ in line with the Ukraine Plan, adopt a law on reducing deforestation and forest degradation; advance alignment with the EU acquis on nature protection, adopt a law on the protection of waters against pollution caused by nitrates from agricultural sources; and prepare a strategy on the cost recovery of water services and resources.

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION

Chapter 11 - Agriculture and rural development

Ukraine has some level of preparation in the field of agriculture and rural development and has made good progress, in particularby adopting the Law on support in the agricultural

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sector. This law provides the legal basis for the paying agency, the integrated administration and control system (IACS) and the farm sustainability data network (FSDN). Implementation of the strategy for agriculture and rural development until 2030 continued. Land Parcel Identification System (LPIS) pilot projects allow for testing future countrywide solutions.

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Ukraine should in particular:

→ continue implementing the strategy for agriculture and rural development until 2030 and strengthen the administrative capacity for its implementation;

→ accelerate the set-up of the FSDN in line with the Ukraine Plan and the IACS and improve the targeting and delivery of agricultural support, based on reliable data and strengthened controls and transparency, including through the State Agrarian Registry (SAR);

→ adopt implementing legislation under the Law on support to the agricultural sector and provide sufficient resources for the designated paying agency’s operations.

Chapter 12 - Food safety, veterinary and phytosanitary policy

Ukraine is moderately prepared in the field of food safety, veterinary and phytosanitary policy. Some progress was made in the reporting period, in particular through the adoption of the amended Law on veterinary medicine and animal welfare and the expansion of the use of the EU’s trade control and expert system (TRACES).

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ advance alignment with the EU acquis on food safety, veterinary and phytosanitary policy, in line with the Deep and Comprehensive Free Trade Area (DCFTA) obligations in the fields of animal welfare, animal feed, plant protection products, genetically modified organisms and official controls;

→ strengthen administrative capacity for carrying out official control activities in the fields of laboratories and infrastructure and databases;

→ continue the reform of the food safety bodies in line with EU requirements, in particular by strengthening the capacity of the State Service of Ukraine on Food Safety and Consumer Protection (SSUFSCP) for risk assessment, risk communication and risk- based planning.

Chapter 13 - Fisheries and aquaculture

Ukraine has some level of preparation in the field of fisheries and aquaculture. Some progress was made during the reporting period, in particular through the adoption of the framework act for the functioning of the e-Fish system in September 2025 and of the 2026- 2029 operational plan. Ukraine became full member of the General Fisheries Commission for the Mediterranean in November 2025.

The Commission’s recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ continue to align national legislation with the EU acquis, including on the collection, management and use of data, on the functioning of the fisheries and aquaculture market, on state control and on technical measures;

→ take preparatory institutional steps to put in place an effective fisheries monitoring, control and inspection system to combat illegal, unreported and unregulated fishing;

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→ further develop the features and interoperability of Ukraine’s e-Fish system, including the core modules needed for traceability, data collection and state control, and further harmonise it with the equivalent EU registers.

Chapter 22 – Regional policy and coordination of structural instruments

Ukraine has some level of preparation in the area of regional policy and coordination of structural instruments. Limited progress was made in the reporting period, in particular by reactivating the Interagency Coordination Commission on regional development.

The Commission’s recommendations from last year were only partially implemented and remain valid. In the coming year, Ukraine should, in particular:

→ prepare and adopt a government action plan for the fulfilment of Chapter 22 benchmarks and implement the Law on the principles of state regional policy; ensuring establishment of clear regional policy and coordination of future EU structural instruments institutional architecture, with defined Ministries’ mandates and a stable lead coordination function;

→ improve reporting on the implementation of the State Regional Development Strategy and prepare the new strategy for 2028-2034; finalise the regional and local development strategies to prioritise investments for all regional and local stakeholders; ensure the State Fund of Regional Development becomes operational and digitalised;

→ strengthen the capacity of national, regional and local administrations in project development and public procurement, and the capacity of the Ministry for Communities, Territories and Internally Displaced Persons in cohesion policy programming and implementation, cross-sectoral and interinstitutional coordination; ensure the Interagency Coordination Commission becomes fully operational and ensure the systematic and inclusive engagement of regional and local stakeholders at all stages of the programming cycle.

Chapter 33 - Financial and budgetary provisions

Ukraine is at an early stage of preparation in the area of financial and budgetary provisions. There was limited progress made in the areas covered by the chapter, namely by the continued work on the preparation of a roadmap for implementation of an own resources system.

The Commission’s recommendation from last year was not implemented and therefore remains valid. In the coming year, Ukraine should:

→ adopt the roadmap to implement an own resources system, and strengthen awareness among key stakeholders;

→ set out internal procedures for the management and maintenance of A and B accounts in line with the own resources legislation and ensure that the IT infrastructure supports these procedures;

→ develop and implement the necessary administrative, technical and legislative framework to ensure readiness to calculate and make available the own resources from non- recycled plastic packaging waste.

CLUSTER 6: EXTERNAL RELATIONS

Chapter 30 - External relations

Ukraine has a good level of preparation in the field of external relations but made limited progress in the reporting period. Ukraine’s trade policy largely complies with World Trade Organization (WTO) commitments and the rules of the Association Agreement/Deep and

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Comprehensive Free Trade Area (AA/DCFTA). However, an increasing trend in applying trade barriers has been observed.

The Commission’s recommendations from last year were partially implemented, including on drafting relevant legislation, and remain valid. In the coming year, Ukraine should in particular:

→ continue to ensure that its trade policy remains compliant with WTO and AA/DCFTA commitments, in particular by refraining from introducing discriminatory measures, including measures that unjustly favour domestic products or producers and act as barriers in EU-Ukraine trade relations;

→ before entering any new bilateral trade agreement, assess its impact, in light of Ukraine’s candidate status and forthcoming accession, ensuring that any agreement contains a clause allowing for its early termination in the event of EU accession;

→ make progress in aligning its national legislation with the EU acquis on the screening of foreign direct investments (FDI), including the recently adopted Regulation no. 2026/1386.

Chapter 31 - Foreign, security and defence policy

Ukraine has a good level of preparation anddemonstrated very good progress with continued intense political dialogue with the EU at all levels, the significantly improved security and military cooperation with the EU and its Member States, and the maintenance of a very high rate of alignment with the EU’s common foreign and security policy (CFSP).

The recommendations from last year were partially implemented and remain valid. In the coming year, Ukraine should in particular:

→ further align Ukraine’s legislative framework with the provisions of the Rome Statute of the International Criminal Court (ICC) and its related instruments;

→ further align with the CFSP, including the Statements by the High Representative on behalf of the EU and Council decisions on restrictive measures, and ensure that restrictive measures are implemented.

1.3. STATE OF PLAY OF THE ACCESSION NEGOTIATIONS

Following the first intergovernmental conference that opened accession negotiations with Ukraine, the bilateral screening meetings were concluded on 30 September 2025. Accession negotiations on cluster 1 (fundamentals) were opened on 15 June 2026, followed shortly by the opening of accession negotiations on cluster 6 (external relations) on 14 July 2026 as well as cluster 2 (internal market) and cluster 3 (competitiveness and inclusive growth) in October.

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2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM

2.1.1. Democracy

The functioning of democratic institutions in Ukraine is generally stable. Martial law has been in place since February 2022, with its 20th extension valid until 31 October 2026. Martial law permits certain restrictions on individual rights and freedoms and on legal entities’ rights and interests. While its application has been proportionate overall, it remains essential that these

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powers are not exercised in ways that could jeopardise the reform agenda, which has had positive results so far.

Elections

No elections took place during the reporting period as they remain prohibited under martial law. The authorities made some progress in preparing for the first post-war elections. The Roadmap on the Functioning of Democratic Institutions remains a key policy document advancing electoral reform in Ukraine.

In October 2025, the Central Election Commission (CEC) conducted a comprehensive assessment of recommendations made by the Office for Security and Cooperation in Europe / Office for Democratic Institutions and Human Rights (OSCE/ODIHR). Following this assessment, the CEC adopted Resolution No 48 to put forward legislative proposals and a regular monitoring mechanism to implement them. In December 2025, the CEC organised an inclusive expert dialogue on outstanding OSCE/ODIHR recommendations, including those on ensuring voting rights of persons with disabilities, and approved its communication strategy. In addition, the CEC resumed public-facing services of the State Voter Register, allowing citizens to submit applications and update their details. In July 2026, the CEC adopted a concept on countering FIMI in elections in Ukraine, which will require consistent implementation.

A special parliamentary working group established in December with the inclusive participation of different political forces and civil society organisations aims to develop comprehensive legislative proposals for elections for the post- war era. This working group covers a broad range of administrative, security and voting rights issues, as well as implementation of the OSCE/ODIHR recommendations and the Roadmap on the Functioning of Democratic Institutions. CEC Resolution No 1 of January 2026 provides the substantive basis for this work.

Building on these efforts, this preparatory work is expected to result in Parliament adopting legislation. As part of this process, Ukraine needs to ensure alignment with all relevant EU acquis in this area, including Regulation (EU) 2024/900 on the transparency and targeting of political advertising, and taking into account European and international democratic standards. The seven-year term of office of CEC members is scheduled to expire in October 2026. Its timely renewal must be ensured to prevent legal, political and reputational risks to preparations for the first post-war elections.

Parliament

Parliament continues to exercise its powers amidst the ongoing war and martial law, albeit at a slower pace than in the previous reporting period. Between 1 September 2025 and 1 September 2026, 133 laws were adopted, out of which 130 have fully entered into force. The legal fragmentation of the procedure for the adoption of laws relating to EU integration still needs to be addressed.

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Compared with the previous reporting period, more progress was achieved in the area of parliamentary transparency and public engagement. Parliament’s open plenary sessions continued to be broadcast live, and the amendments to the Law on parliamentary committees, which entered into force in January 2026, better regulate access for journalists and civil society. Civil society organisations (CSOs) continued to be involved in legislative processes. Since the entry into force of the Law on lobbying, 205 bodies have been registered in the Transparency Register. The practice of ‘Hour of Questions to the Government’ continued on a regular basis.

The legislation on political parties requires a comprehensive update, including on procedures to hold political parties accountable for breaches of financing rules. It is crucial to always ensure that the rights of the opposition are respected. No legislative initiatives regulating the rights of parliamentary opposition have been developed or registered.

Women remain underrepresented in politics and decision making.

EU integration

The institutions in charge of the EU integrationprocess are in place. There remains broad public consensus on EU integration as a top priority for Ukraine. CSOs and professional organisations are part of Ukraine’s EU integration efforts.

The National Programme for the Adoption of the Acquis (NPAA)was adopted in April 2026. Negotiation working groups are active and include representatives of the relevant line ministries, Parliament and CSOs. During the reporting period, the government launched regional dialogues with business communities to strengthen consultations with stakeholders at sub-state level. Ukraine continues its quarterly reporting to the European Commission on implementation of the roadmaps on the rule of law, public administration reform and the functioning of democratic institutions, as well as on the action plan on national minorities.

Governance

During the reporting period, several ministerial changes took place. Following a considerable anti-corruption investigation into the state nuclear energy operator, the Energy and Justice Ministers resigned. In January 2026, the Defence Minister became First Deputy Prime Minister and Energy Minister, while the Digital Transformation Minister was appointed Defence Minister. In July 2026, a major government reshuffle took place, including the appointment of a new Prime Minister and the replacement of almost two thirds of the Ministers. Following the dismissal of Defence Minister as part of the government reshuffle, public protests took place in several cities. In August, the composition of the new government was completed with the appointment of the new Defence Minister and re- appointment of the Minister of Foreign Affairs.

Ukraine’s multilevel governance system continues to function effectively amidst Russia’s full-scale war of aggression. The decentralisation reform remains focused on improving local self-governance capabilities and should continue advancing in line with EU accession requirements and the European Charter of Local Self Governments.

Some progress has been made in strengthening the effectiveness and transparency of the multilevel governance system. The adoption of the Law to ensure legality and transparency in local self-government activities is a significant achievement, but further efforts are needed to align local state administrations with a prefect-type oversight model. The adoption of the 2025 Revised Concept of local self-government reform is a positive step. A comprehensive action plan for the reform of local self-government should be adopted to operationalise the Revised Concept and should set out clear legislative steps, timelines, and responsibilities across all decentralisation reform areas and identify which tasks from the 2024-2027 action plan still need to be completed.

Preparatory work has advanced in drawing up the principles and criteria for delineating: (i) powers between state and sub-national levels; and (ii) sectoral powers between sub-national

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levels of governance. The draft law has yet to be adopted. This law should set a multi-level governance system where powers are delineated between governance levels, rather than among governance bodies, and preserve local autonomy. To fully eliminate conflicts of power, sectoral competences should be delineated between executive and sub-national governance levels and sector specific legislation should be amended.

The level of personal income tax allocated to municipalities was maintained at 64%. Ukraine should amend the legislative framework creating a robust mechanism to guarantee local financial autonomy. The number of local military administrations has increased. The legislative framework for resuming local governance after martial law has yet to be adopted, including safeguards of local autonomy and phasing out military administrations in de- occupied territories.

Civil society

Civil society, including human rights defenders, in Ukraine operates in an overall enabling environment.

Mechanisms for dialogue and cooperation between authorities and civil society continued to function, with CSOs frequently involved in government and parliamentary working groups and expert councils, including in monitoring key EU accession policy documents. However, the effectiveness of these mechanisms remained uneven across institutions and policy areas. The Ministry of Justice and the Secretariat of the Cabinet of Ministers maintained strong engagement with leading expert organisations in strategic processes relating to civil society sectoral reforms.

The National Strategy for the Promotion of Civil Society Development, ending in 2026, continued to be implemented through an overall transparent process. The government already started consultations with civil society on the new National Strategy for the Development of Civil Society for 2027-2032. At the same time, key reforms to improve the enabling environment for CSOs faced delays, including amendments aiming to strengthen public participation, in particular at local level and legislation simplifying the set-up and operation of CSOs, including through online registration. Public funding for CSOs remained limited and fragmented, mainly channelled through targeted calls aligned with specific ministries’ priorities.

Incidents have been reported of pressure on activists. During the reporting period, the working group at the Office of the Prosecutor General, an effective tool which had brought together authorities and civil society to monitor such cases, ceased to function. In December 2025, the Ministry of Internal Affairs set up a new working group with civil society participation, focusing on cybercrimes targeting activists. Although this is a positive initiative, it does not fully replace the previous mechanism. The State Targeted Social Programme for the Development of Volunteering until 2030 was drafted through a transparent and inclusive process led by the Ministry of Social Policy and adopted in April 2026. However, delays in its adoption meant that budgetary funding for its effective implementation was not secured. In March 2026, Parliament adopted legislation simplifying long-term stay rules for foreign volunteers and humanitarian workers. Some progress was also achieved in improving the tax environment for CSOs with the implementation of a new law.

Instances of CSOs being denied financial services have been reported. In the context of the fourth national risk assessment of money laundering and financing of terrorism, the risks inherent to the non-profit sector should be properly substantiated, in line with Financial Action Task Force (FATF) operational definitions and by relying on a wide set of sources.

2.1.2. Public administration reform

Strategic framework for public administration reform

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The strategic framework for public administration was updated through the adoption of the public administration reform (PAR) strategy in June 2026 and the public financial management (PFM) strategy in February 2026, both for 2026-2030, and their accompanying action plans. These documents were developed through an inclusive consultation process involving stakeholders, experts and civil society, and are aligned with the Ukraine Plan and the PAR roadmap commitments. The government continued to implement the PAR roadmap, which serves as a key guiding document for the PAR reform process in the EU accession process.

The institutional framework for PAR remained largely unchanged. In July, due to the Government reshuffle, the overall political responsibility for coordinating public administration reform has been assigned to the Prime Minister. Political responsibility for civil service policy development and implementation is still not clearly assigned within the Cabinet of the Ministers. Cooperation and synergy among the institutions concerned need to be significantly improved.

Management and coordination mechanisms toimplement the PAR are well established, but actual implementation is weak. In particular, the PAR Coordination Council, responsible for overseeing reform implementation, did not ensure effective and strategic reform steering and coordination in the reporting period. Ensuring the financial sustainability of PAR is an ongoing challenge.

Policy development and coordination

The National Programme for the Adoption of the EU acquis (NPAA) was adopted in April 2026. It serves as the key overarching framework for aligning national legislation with the EU acquis. Its effective implementation, regular updating and monitoring should be ensured. The Law on the national strategic planning system, which should strengthen the link between policy planning and budgeting, should also be adopted.

Monitoring ofthe implementation of policies and legislation was strengthened. The ‘reform matrix’, introduced in 2024, is regularly updated. To monitor and report on the implementation of the European integration commitments and the NPAA, the ‘Accession Pulse’ information system was set up, but it is not yet publicly available. The Translation Office has been set up to ensure the standardisation of terminology and the high-quality translation of EU legal acts.

The capacity for evidence-based policymaking need to bestrengthened further. No tangible progress was made in revising the regulatory framework to improve policymaking and legislative drafting standards. The government’s role as an initiator of draft legislation remains limited, with most adopted legislation originating from Members of Parliament. In 2025, 25% of adopted laws were initiated by the Cabinet of Ministers, down from 32% in the previous year. The quality of explanatory notes and impact assessments accompanying legislative proposals should be improved in line with European standards. Public consultations should also apply to legislative initiatives of Members of Parliament.

Public financial management

The public financial management (PFM) system is broadly in place. Ukraine has demonstrated good capacity in implementing PFM reforms, particularly by focusing on: (i) fiscal discipline; (ii) medium-term budgeting; (iii) cash and debt management; (iv) public investment management; and (v) accountability. On the strategic framework, a new comprehensive PFM strategy 2026-2030and a related action plan for its implementation were adopted in February 2026.

Key developments on budget management include the continued implementation of medium-term budget planning following the 2027-2029 Budget Declaration’s adoption in June 2026 and annual spending reviews of the state budget. The methodology for spending reviews was improved in line with OECD standards in March 2026. In December 2025, the

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medium-term debt management strategy for 2026-2028 was adopted, setting debt sustainability targets and measures to deepen the domestic bond market. The link between strategic planning and budgeting needs to be further strengthened.

Effective oversight of the budget process is needed. Legislative and operational steps should be taken to set up an independent fiscal institutionto evaluate government forecasts, scrutinise government budgetary assumptions and assess the performance of previous forecasts.

The adoption of the medium-term plan for priority public investment (MTP) for 2027-2029 in May 2026 and the 2027 state-level single project pipeline (SPP) in September 2026 marked significant developments in implementing public investment management (PIM) reform. There was also progress with the adoption of sub-national MTPs and SPPs by local and regional authorities. It is essential that Ukraine continues to implement the reform based on the PIM roadmap and action plan, which requires a whole-of-government approach. Significant steps are still needed to fully operationalise the new PIM system, including the preparation of the following: (i) updated sectoral strategies to guide investment priorities; (ii) strengthened appraisal procedures (iii) a methodology for the economic analysis of public investment projects; (iv) prioritisation methodologies for SPP projects; and (v) an overall national strategic planning framework. As regards the IT architecture, the Unified Digital Management Ecosystem for PIM should be consolidated by completing the integration of the Digital Restoration Ecosystem for Accountable Management (DREAM) with other relevant IT systems.

Budget transparency remains affected by martial law and security considerations. Nevertheless, the publication of key budget information and fiscal reporting has been maintained.

The government is advancing the digitalisation of PFM systems through the Ministry of Finance’s Digital Transformation Programme (2025-2030), which focuses on IT system modernisation, data integration, and alignment with EU digital systems.

Public service and human resources management

Martial law continues to significantly affect the civil service regulatory framework and HR practices. Competitive, merit-based recruitment and selection to the civil service remainedsuspended. However, in October 2026, a law aiming to improve and restore merit- based recruitment was adopted in Parliament.Beyond restoring competitive recruitment, the law improves the current selection and recruitment procedures in line with European best practices and strengthens integrity checks for management positions and other posts considered to be at high risk of corruption. The adoption of this law should be followed by fully restoring merit-based recruitment in the civil service, in line with the Ukraine Plan indicators. Development of the new civil service vacancy portal, integrated into the Diia platform, is finalised. The portal’s full operational capacity is essential to helping resume open competitions, ensuring transparent publication of all civil service vacancies through a single centralised platform.

The next steps in the civil service remuneration reform, initiated in 2024, should be based on the findings and recommendations set out in the audit report of the Accounting Chamber of Ukraine, issued in October 2025. This should help ensure an evidence-based approach to advancing the reform.

The roll-out of the unified human resource management information system (HRMIS) across the public administration has advanced with most of the government bodies now connected to the system. Its implementation and actual use should be accelerated to ensure comprehensive institutional coverage and achieve the reform’s objectives. The National Agency on Civil Service, responsible for HRMIS administration, continues to face insufficient administrative capacity. In parallel, the Ministry of Digital Transformation is advancing the implementation of the Diia.Office service for civil servants. Its alignment with the HRMIS

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should be ensured.

Gender balance across the civil service remains uneven. As of June 2026, women only accounted for 26% of top management positions, but made up the most of middle management roles (68%) and non-managerial/executive roles (80%).

Accountability of the administration

Ukraine’s public accountability system is largely in place and operational. During the reporting period, the Accounting Chamber of Ukraine (ACU) continued implementing its approved ISSAI-based methodologies for financial, compliance and performance audits, supported by practical methodological assistance, structured review of audit planning and reporting documents. Day-to-day operation remains fragmented and further steps are needed to strengthen the ACU’s professional and financial independence. In 2025, most, but not all public bodies, had adopted anti-corruption programmes.

Internal governance within ministries continues to lack a clear separation of responsibilities at senior management level between deputy ministers and state secretaries. Policy areas continue to be managed and coordinated by political appointees (deputy ministers), rather than professionally selected senior civil servants. Progress was made in optimising work processes in central executive bodies, in particular by developing catalogues for typical work processes and setting up working groups. In addition, AI-based support tools were developed.

Over 200 laws and nearly 300 secondary legislative acts have been aligned with the Law on administrative procedure (LAP) since it entered into force in December 2023. Further legislative alignment and harmonisation with the law is needed in the areas of taxation, customs, land relations, digital administrative procedures and secondary legislation. Training for officials at all levels has continued but should be expanded, particularly at local government level.

The law on citizens’ appeals should be adopted and aligned with both the LAP and EU standards, ensuring a clear distinction between administrative procedure cases and other types of public petitions. The new code on administrative violations should be adopted to systematise penalties for administrative offences in full alignment with the LAP. The right to access public information is well regulated and consistently applied, but access to certain public information remains restricted under the ongoing martial law.

On the right to administrative justice, the Kyiv Specialised District Administrative Court and the Kyiv Specialised Administrative Court of Appeal, established in 2025, are still not operational. The new courts should become operational without delay to ensure access to administrative justice involving central government bodies.

Service delivery to citizens and businesses

The delivery of public services to both the public and businesses continues to improve, with a growing number of online services and physical access points across Ukraine. Ukraine has emerged as a global frontrunner in digitalisation, as reflected in its progress in the United Nations e-Government Development Index (EGDI). Ukraine achieved first place in the E- Participation Index and fifth place in the Online Service Index, both of which are EGDI sub- components. Diia remains the most widely used e-platform, playing a crucial role in ensuring the continuity of public service delivery amid ongoing challenges caused by the war. Its e- DEM platform, the first national e-democracy tool, covers topics on local petitions, participatory budget, public consultations and is used by 500 municipalities (35% of all municipalities) and 2.2 million people. The legislative harmonisation of digital services with the LAP is still pending, as is the adoption of legislation on digital accessibility.

The offline provision of public services continued through the nationwide network of administrative service centres (ASCs). At the beginning of 2026, the ASC network included 5 763 operational service access points (up from 4 886 in 2025). In 2026, 87% of ASCs were

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accessible to persons with disabilities and reduced mobility. To further improve inclusivity, methodological recommendations for assessing the accessibility of ASC buildings have been developed, supporting a more systematic approach to barrier-free service provision.

To further strengthen the capacity of administrative service delivery and improve the regulatory framework for funding them, Ukraine should adopt the Law on administrative fees.

2.2 RULE OF LAW AND FUNDAMENTAL RIGHTS

2.2.1 Chapter 23 - Judiciary and fundamental rights

The EU’s founding values include the rule of law and respect for human rights. An effective (independent, high quality and efficient) judicial system and an effective fight against corruption are of paramount importance, as is respect of fundamental rights in law and in practice.

Functioning of the judiciary

Strategic documents

Strategic documents are partly in place, but their level of implementation still needs to be improved. Following the expiry of the last strategy in 2023, a new strategy for the development of the justice system and constitutional judiciary is not yet drafted. It should be developed through broad consultations and include a budgeted action plan. The Office of the Prosecutor General (OPG) should also adopt its new strategy and develop monitoring tools for its implementation.

Management bodies

Management bodies within the judiciary are in place and function adequately. There are issues with selecting and appointing their members and with their institutional capacity, including IT, analytics and access to databases, which need to be resolved.

In October 2025, the President appointed two internationally vetted members to the High Council of Justice (HCJ), the Council of Judges (CoJ) appointed another two in March 2026 and the Congress of Representatives of Law Schools and Scientific Institutions one member in August 2026. The terms of two HCJ members expired in August 2026, and Parliament should appoint selected candidates without delay and before the continuation mechanism expires. The HCJ now has 19 of 21 members in place, with two positions from the Congress of Attorneys’ quota still vacant. The Ukrainian National Bar Association (UNBA) should launch the competition to fill these vacancies. Competitions have already been launched for the 10 additional members whose terms will expire in early 2027.

In March 2026, the Congress of Judges elected 30 members to the CoJ, reaching the quorum required for full operational authority. However, transparent and credible integrity and professionalism checks of candidates were not yet introduced, and the list of candidates was not published before the Congress meeting. Concerns have been raised over the new composition’s commitment to advance accountability in the judiciary.

Continued resistance to the temporary involvement of internationally nominated independent experts in various selection and vetting processes is of concern. The premature termination of the role of independent experts before national appointing bodies are fully reformed risks undermining judicial reform. In particular, the meaningful involvement of internationally nominated independent experts in the selection commission for the High Qualification Commission of Judges (HQCJ) and the HCJ needs to be urgently extended.

The Public Integrity Council (PIC) has continued to assist the HQCJ in judge selection competitions but needs to be further strengthened by improving access to judicial dossiers, strengthening analytical capacity, and ensuring an adequately staffed secretariat.

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In December 2025, the appointment of the new head of the State Judicial Authority (SJA) did not comply with the competitive, merit and integrity-based selection procedure, contrary to Ukraine’s specific commitments in its Rule of Law Roadmap. Ukraine should improve the selection procedure for SJA management positions.

On 27 August the All-Ukrainian Conference of Prosecutors elected 11 new members of the Council of Prosecutors (CoP), albeit under the existing framework, which is in need of improvements on transparency and quality. An independent functional audit of the CoP and the Qualification and Disciplinary Commission of Prosecutors (QDCP) was conducted in December 2025. Ukraine should implement the expert recommendations to improve the selection procedures for members of prosecutorial self-government bodies and strengthen their institutional independence, efficiency and overall effectiveness, and follow the advice of the Venice Commission.

Independence and impartiality

The independence and impartiality of the judiciary is guaranteed by the constitution and judicial legislation, but certain shortcomings in the statutory legislation and in its practice persist. Public trust in the judiciary remains low, including among judges themselves. It would be beneficial if the HCJ and the CoP were more proactive in using the measures at their disposal to protect judges and prosecutors from undue interference

The automatic allocation of cases among judges is laid down in law but is open to manipulation due to limited controls in place within each court. An improved module for case allocation should be added to the Unified Judicial Information and Telecommunication System (UJITS), which is currently being upgraded. Legislation should also be amended to ensure that judges cannot be

involved in decisions on their own recusal and that such decisions are subject to appeal.

Adopted in late 2024, the unified indicators for evaluating the integrity and professional ethics of judges are now uniformly applied by the HCJ, HQCJ and PIC to assess sitting judges and certain judicial candidates. The HQCJ continued recruiting judges, but the staffing situation aggravated compared to last year, with 2 505 judicial vacancies unfilled due to the slow pace of selections and appointments, as well as retirements and resignations. There are safeguards in place to protect judges and prosecutors from appointments, promotions and transfers without their consent.

In June and September 2025, the President appointed two new judges to the Constitutional Court of Ukraine (CCU), restoring its quorum. Five vacancies remain to be filled, one under the President’s quota, two under the CoJ’s and two under Parliament’s after Parliament

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failed to appoint two judges in October 2025, delaying the renewal of the CCU. Transparent selection processes involving the Advisory Groups of Experts need to continue, and the appointing authorities must proceed with the selection and appointment of the vetted candidates to avoid further delays. The Law on the constitutional procedure has yet to be improved, in line with the 2021 Venice Commission recommendations.

The Cabinet of Ministers took preparatory steps to reform the legal profession, including through the set-up of a multi-stakeholder working group in January 2026, led by the Ministry of Justice. Work on the substance needs to resume to ensure meaningful change and to develop legislative amendments that emerge from broad, constructive consultations and address key areas. These areas include: (i) the transparent, credible election of the Ukrainian National Bar Association (UNBA) governance bodies; (ii) improved access to the legal profession; (iii) better qualification and admission standards; (iii) more disciplinary accountability; (iv) robust financial oversight; and (v) continuous training.

Questions remain on the fairness and consistency of disciplinary proceedings initiated by the UNBA and regional bar associations. This affects lawyers, including HCJ and HQCJ members and could undermine the independence of the legal profession and judicial governance bodies.

During a NABU investigation into alleged corruption schemes protected by senior prosecutors, the Prosecutor General resigned in September and was later dismissed by the Parliament. Prior to his dismissal, he left Ukraine, made criminal accusations and signed notices of suspicion against the director of NABU and an associate to the head of SAPO that were shortly afterwards revoked by the PGO. Ukraine should urgently reform the selection and dismissal procedures for the Prosecutor General and high-level prosecutors by making them more transparent and merit-based. While the QDCP made progress in selections for prosecutors and launched competitions for district prosecutors, concerns persist over non- competitive appointments and transfers to the OPG and regional offices. Reinstating competitive selections is critical to restoring meritocracy and preventing undue interference.

Accountability

The accountability of the judiciary is broadly satisfactory but needs to be improved. The HQCJ continued the evaluation of sitting judges’ qualifications (vetting) with the involvement of the PIC, although at a slow pace due to capacity constraints. 4 476 judges have so far completed the vetting procedure, while 1 244 still needed to prove their suitability undergo evaluation as of June 2026. Submissions for dismissal were made in respect of 29 judges due to their refusal to undergo the vetting procedure. 156 judges have ceased exercising office due to their five-year term ending, including 32 who the HQCJ deemed were suitable to hold position.

The PIC’s capacity should be further developed, including by granting its secretariat access to certain databases. The HQCJ should build autonomous analytical resources and improve the reasoning of its decisions when they override a negative opinion of the PIC. The HCJ needs to accelerate the

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HQCJ’s review of submissions on the dismissal of judges who failed the evaluation of qualifications and improve the reasoning of its decisions. The Supreme Court, in its decision of January 2026, departed from its June 2024 position on the qualification assessment of judges and restored a stronger role for the PIC: where PIC issues a negative opinion, the matter must be decided by the plenary HQCJ and with the votes of at least 11 HQCJ members.

The Service of Disciplinary Inspectors (SDI), which has been operational for over a year and where two vacancies remain, was assigned around 22 000 disciplinary complaints against judges, including the backlog of around 11 000 pending cases when it was set up. In 2025, the HCJ processed over 10 000 complaints with the help of the SDI, resulting in 383 disciplinary cases being opened, sanctions on 92 judges, and 33 dismissal motions. However, many cases have been left unresolved, and only about one third of the 174 prioritised complaints have been completed due to delays at various stages of the disciplinary proceedings.

HCJ and SDI rules on prioritisation should be systematically applied and without delay, while improving reasoning and uniformity of practice. To prevent conflicts of interest, judicial members of the HCJ should be recused from reviewing complaints against judges from their own courts. Given the 36% rise in registered complaints in 2025, greater financial and institutional support should be provided to sustain the SDI’s operations. The current legislation still allows judges subject to disciplinary proceedings to resign before the HCJ’s decision on a dismissal has been made. Legislation that defines disciplinary offences more precisely still needs to be adopted, in line with the recommendations of the Council of Europe’s Group of States against Corruption (GRECO).

To address corruption risks and raise the level of professionalism and integrity at the Supreme Court, the selection process for judges as well as integrity checks should be strengthened, including through the temporary and meaningful involvement of independent experts nominated by international partners. New legislation on the system of judges’ integrity declarations entered into force in June.

The CoJ approved a commentary on the Code of Judicial Ethics of 2024 to improve the quality and uniformity of its application. The National School of Judges included training on judicial ethics and integrity in its initial and continuous training curricula. The detailed procedures to verify declarations of assets and conduct lifestyle monitoring of ordinary and CCU judges still need to be agreed on between the National Agency on Corruption Prevention (NACP), the HCJ and the CCU.

The OPG continued the attestation of prosecutors based on transparency and professional criteria. Those who fail the process should be dismissed, and pending court cases should be resolved. In 2025 and until August 2026, the QDCP received 2 108 disciplinary complaints alleging disciplinary misconduct by prosecutors and initiated 442 proceedings, rejecting the rest. This led to disciplinary sanctions being imposed on 119 prosecutors. Following the 2024 scandal on prosecutors benefiting from allegedly unlawful disability pensions, administrative and criminal investigations have led to 42 dismissals from office in the prosecution service and four indictments in criminal proceedings without outcome to date.

Ukraine should adopt legislation to improve the disciplinary system for prosecutors and strengthen the QCDP’s institutional capacity, in line with the outstanding GRECO Round IV Evaluation recommendations. Ukraine should also transfer the power to review complaints against QDCP disciplinary decisions from the HCJ to the CoP or a court. The General Inspectorate should also increase its capacity and its independence from the OPG.

Quality of justice

The quality of justice should be further improved. As of August 2026, there were 4 198 judges, 9 862 prosecutors and 47 800 actively practising lawyers, out of approximately 74 000 registered UNBA members. The number of judges continued to decline from the

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previous year and remains a significant concern, unlike the number of prosecutors and lawyers. More efforts are needed to ensure the uniformity of court practice within the appeal and cassation review instances. Ukraine still needs to bring regular performance evaluations of judges and prosecutors in line with GRECO recommendations and European standards.

Improvements in legal education include the adoption of the Law on academic integrity in December 2025, which applies to all higher education programmes, including law programmes, and introduces a comprehensive accountability framework. However, new legislation is still needed to tackle: (i) the uneven quality of legal education; (ii) fragmented regulation; (iii) insufficient alignment between legal training and professional requirements; (iv) weaknesses in quality assurance systems; and (v) the lack of a coherent framework governing access to legal professions as well as the institutional separation of legal education and law enforcement training. To ensure consistency and quality standards, the requirements for the Unified State Qualification Exam should be extended to all law graduates. Further steps are needed to develop and spread knowledge of EU law and of specialised skills, including in the area of ethics.

The adoption of the judicial education strategy for 2026-2030 is a positive signal. Judicial training is improving, while it still requires comprehensive reforms, in line with the TAIEX peer review recommendations. This includes fundamental reforms to judges’ training, while preserving the progress achieved in prosecutors’ training and preventing any rollback. The model of initial training should be evaluated

against European standards and practices, including pre-appointment training, its duration, its role in the selection process and its competency-based approach. The EU Law Training Laboratory of the National School of Judges (NSJU) has improved the integration of EU law into the training curricula. Further modernising the curricula, teaching methodologies and the design of training remain essential to align them with European standards, particularly by ensuring a systematic linkage between training, skills gaps, learning outcomes and judicial practice. Funding and processes for the recruitment and secondment of qualified trainers should be improved. The adoption of a new procedure for the selection of the vice rector of the NSJU is a positive step but further amendments need to ensure the strengthening of integrity, merit, transparency and independence safeguards and establish such procedure for selecting other NSJU management and staff, alongside new accountability and anti- corruption procedures. The Prosecutorial Training Centre is well funded and is delivering effective training, including on managerial skills.

Ukraine expanded free legal aid to cover close relatives and family members of persons missing under special circumstances. There were key advances in child-friendly justice, including: (i) updated quality standards for cases involving minors; (ii) a new coordination mechanism between penal and probation authorities; and (iii) clearer procedures for engaging lawyers for child victims or witnesses. Interagency cooperation was strengthened thanks to a new mechanism that redirects calls from the police hotline to the legal aid system.

Ukraine has partly expanded alternative dispute resolution (ADR) mechanisms. In cross-border family disputes, courts

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are now required to inform parties about mediation options. While arbitration and conciliation mechanisms with the participation of a judge are available, implementation of the mediation law remains limited, including in family disputes. A system to collect data on various forms of ADR is still not operational. The Register of Mediators has expanded with newly trained mediators, including specialists in juvenile restorative justice. The restorative justice programme continued, with mediation conducted in 70% of cases. The planned mandatory mediation for specific categories of disputes still needs to be finalised by the Coordination Council set up in August 2025. Public awareness of mediation should be raised further, and arbitration should be developed and used more frequently.

Efficiency

The efficiency of Ukraine’s justice system continues to suffer from a persistent lack of resources, despite nominal increases in budgetary allocations. In 2025, only 65.9% of the judiciary’s declared financial needs were met, and this fell to 59.4% in 2026. This persistent shortfall has negatively affected court staff retention and courts’ operations. Concerns have been raised about legislative initiatives seeking to link judicial remuneration to special fixed amounts rather than to the minimum wage, which could create possible political leverage over the judiciary.

Despite these challenges, courts have kept a solid clearance rate, exceeding 90% across most instances and specialisations; however, the backlog of cases continued to accumulate. The SJA has not addressed systemic issues affecting judicial operations, including a shortage of judges and court staff and logistical support. This has become particularly critical following missile attacks in December 2025 and January 2026 that disrupted heating and electricity supplies in court buildings. Despite available funding, the SJA has not ensured timely procurement of basic resilience equipment, leaving 40% of the 583 courts vulnerable to outages. These energy disruptions have contributed to delays in proceedings and the postponement of hearings, which are expected to negatively affect court performance indicators in 2026.

Following the creation of the Kyiv Specialised District Administrative Court and the Kyiv Specialised Administrative Court of Appeal to hear cases involving national state agencies, the HQCJ formed the Expert Council, comprising independent experts nominated by international partners, to help select ten judges for the first instance court and 17 for the appeal court. Their selection must be completed without delay as both courts are expected to start operations by the end of 2026.

The current provision allowing certain high-level officials (including Members of Parliament) to choose to have their criminal cases heard in any court by a panel of three judges, regardless of the severity of the possible penalty, should be reviewed for its proportionality and impact on judicial efficiency.

Several measures aiming to digitalise the

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judiciary are under planning and development, such as the UJITS and its core module – the automated court document management system, including a judges’ dossier system and an e-case management system for courts. Strengthened coordination, planning, technical capacities and state funding are needed to avoid delays in the operationalisation of UJITS.

Ukraine continued the development of an e-case management system in the criminal justice chain. The basic modules have been developed to enable integrated case management, information analysis, and interagency cooperation. They are deployed for trial operation with test users from the OPG, NPU and SSU. In addition, work continued on two specialised modules on war crimes statistics and the Russian Federation’s military-political structure.

In March 2026, legislation on improving the enforcement of court decisions was adopted, but data collection has only slightly improved. In 2025, only about 33% of court decisions were enforced. The main reasons were: (i) the ongoing moratoria on enforcement of court decisions; (ii) unresolved public debts accumulated by public companies and institutions; (iii) insufficient budget allocations for settling payments related to social cases (pensions and taxes); and (iv) the absence of adequate instruments, such as the automatic seizure of bank accounts, property attachments or procedures involving residents of the Russian Federation. Further efforts are needed to execute judgments of the European Court of Human Rights. Also, following a comprehensive assessment by independent experts of the entire enforcement system, Ukraine should strengthen the legal status of private bailiffs, reform the state enforcement system and take other measures to improve the enforcement system’s effectiveness.

International crimes

As of August 2026, 286 318 criminal proceedings related to international crimes were registered, out of which 254 530 were for war crimes. 1 279 individuals received a notice of suspicion for war crimes, 933 were accused and 311 convicted. 551 were accused of the crime of aggression and 362 were convicted. 85 were accused of the crime of propaganda and 59 were convicted.

Following the entry into force of the Rome Statute of the International Criminal Court in January 2025, the OPG set up a dedicated working group, bringing together national and international experts. The working group aims to ensure the comprehensive alignment of the Criminal Code of Ukraine with the Rome Statute and broader international criminal law standards. The group has completed its work on the provisions relating to the catalogue of war crimes and the crime of aggression, but the draft law has yet to be brought before Parliament.

The Victims and Witness Coordination Centre continued to strengthen its regional presence, ensuring that victims and witnesses have an assistance mechanism in the regions. Alongside the work of prosecutors, a network of victim and witness support units was set up. In 2026, three new units will become operational in the Lviv, Odesa and Chernivtsi regions, in addition to the nine regional units that have been in operation since 2024.

Fight against corruption

Track record

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Ukraine continued to make good progress in building a track record on the fight against high- level corruption. The National Anti-Corruption Bureau (NABU) and the Special Anti- Corruption Prosecutor’s Office (SAPO) exposed major cases of corruption at the highest levels allegedly involving serving ministers, senior members of the President’s Office, senior

judges and prosecutors as well as Members of Parliament. Most notably, NABU and SAPO led Operation ‘Midas’, which uncovered an alleged high-level corruption and money laundering scheme exploiting public procurement in the energy and defence sectors. The investigation led to the resignation of the ministers of energy and of justice, the head of the office of the President of Ukraine, as well as of other senior officials, most of whom were served a notice of suspicion. In August 2026 further notices of suspicion were served, among others, to a deputy head of the

office of the President of Ukraine, an MP and high-level executives of a state-owned bank, in an alleged graft and money laundering case linked with the Midas investigation. In September 2026, NABU also exposed an alleged organised crime group that established a systematic bribery mechanism in exchange for non-interference with the illegal activities of fraudulent call centres, which led to the resignation of the Prosecutor General, his first deputy, and the arrest of senior prosecutors. Overall, the number of indictments in NABU cases increased, while the total number of suspects declined slightly. At the same time, the number of indictments in corruption cases investigated by the National Police of Ukraine (NPU) and the Economic Security Bureau (ESBU) decreased, while it slightly increased for the State Bureau of Investigation (SBI).

The number of verdicts issued by the HACC, including final convictions, considerably increased, including the conviction of a former Chair of the Supreme Court. The average disposition time at the court (the time it takes to resolve a case) fell by one third but remains too high overall, and the case backlog needs to be reduced. In 2025, a total of ten defendants in high-level corruption cases were released from criminal liability due to the expiration of the statute of limitation. As for ordinary courts, despite a moderate increase in the rate of convictions for corruption offences, many cases remained without a court decision, and the number of closed proceedings further increased.

Legal framework

The legal framework for the fight against corruption is broadly in place but needs to be strengthened.

No laws were adopted to significantly advance the anti-corruption legal framework. Ukraine is encouraged to step up its efforts in this area as a matter of priority. Ukraine’s ratification of the OECD Anti-Bribery Convention remains pending, as the related amendments to criminal law have yet to be adopted. The country should refrain from advancing legislative initiatives

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bearing corruption risks, such as those concerning politically exposed persons (PEPs), criminal procedures for economic crimes and free-of-charge land privatisation.

Current criminal law and criminal procedures should be reviewed to strengthen the delivery of justice in high-level corruption cases. Ukraine should remove from the relevant legislation the provision on the automatic closure of criminal cases upon the expiry of the time limits for pre-trial investigation time limits. It should also review the current time limits to ensure sufficient time for criminal investigations. Moreover, to ensure a sufficient timeframe to investigate, prosecute and adjudicate corruption and corruption-related offences, Ukraine should strengthen the statute of limitations and the grounds for their interruption/suspension, in line with European standards. Legislative amendments should be adopted to tackle frequent procedural delays in criminal proceedings effectively and to allow civil and administrative cases to be adjudicated by a single judge at the HACC.

NABU’s jurisdiction should be reviewed and expanded to all high-risk public positions (such as the leadership of the President’s Office and heads of regional administrations). Interference in NABU’s exclusive investigative jurisdiction by other law enforcement authorities remains an issue. This undermines NABU’s mandate, and appropriate legal safeguards should be introduced to address the matter. Moreover, competencies need further strengthening, particularly to allow NABU and SAPO to launch investigations and approve investigative actions against Members of Parliament independently of the Prosecutor General.

Legal provisions on conflict of interest and related restrictions need to be revised to address identified gaps, inconsistencies and disproportionate restrictions. The legal framework for whistleblower protection still requires full alignment with the EU acquis.

Strategic documents

Ukraine has achieved a good level of implementation of its current state anti-corruption program and is in the process of adopting a new anti-corruption policy framework for 2026- 2030.

A new anti-corruption strategy for 2026-2030 was developed, but its adoption by Parliament is pending; the new state anti-corruption program will have to be developed and adopted. It will be important that these policy documents set out ambitious yet realistic priority measures in the areas most prone to corruption, such as public procurement, reconstruction, energy, defence, infrastructure, construction and land management, the judiciary and law enforcement, customs and taxation, extractive industries and natural resources. To avoid recurrent implementation challenges, further strengthening of capacities, expertise and resources is needed, including at the NACP. In addition, to improve reform ownership, it is essential to ensure a clear delineation of responsibilities among line ministries and enforcement structures, as well as the regular involvement of political coordination bodies, including those at high level.

Ukraine has not yet undergone GRECO’s fifth evaluation round on corruption and integrity in central governments (top executive functions) and law enforcement agencies.

Institutional framework

Ukraine’s institutional framework for the fight against corruption remained overall effective, and the specialised anti-corruption institutions continued to operate independently and efficiently.

NABU and SAPO systematically investigate allegations of high-level corruption, including cases involving highest-level officials or people exerting significant influence. Case prioritisation has improved and is applied in practice with visible results, including investigations with a high impact. Concerns remain on continuous attempts to exert pressure on NABU and SAPO’s independence and operations. These attempts include ongoing criminal investigations and surveillance of NABU officials by other law enforcement

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and security institutions as well as media campaigns that aim to discredit the institutions and their management.

NABU and SAPO continue to gradually increase their staffing levels but report challenges in attracting new staff. In March 2026, following the resignation of SAPO’s first deputy head in November 2025, the Prosecutor General appointed the selection commission responsible for selecting candidates to SAPO’s managerial positions. The term of the current head of SAPO expires in July 2027 and timely selection and appointment of the new management will be important. SAPO adopted its institutional development strategy for 2026-2028. NABU adopted an action plan in September 2025 for the implementation of the NABU development strategy for 2025-2030. Its timely implementation will be essential to further strengthening institutional capacity and effectiveness.

NABU’s difficulties in accessing impartial forensic examinations in a timely manner should be tackled urgently. NABU still requires independent wiretapping capabilities.

The external independent audit of SAPO should be carried out to ensure proper control and oversight, and the audit recommendations should be implemented. As regards the external assessment of NABU, the previous assessment that was concluded in 2025 recommended changing the assessment frequency from once a year to twice a year, a recommendation that the Parliament has yet to implement. NABU has continued its work on implementing the previous assessment’s recommendations.

Ukraine made good progress with the selection of 22 judge candidates for the HACC by the HCJ and the HQCJ, with the support of the PCIE. In August, the President of Ukraine appointed 17 HACC judges, and the court recruited the necessary auxiliary staff. Also, new permanent premises were allocated to HACC by the government. In November 2025, the HACC adopted its institutional strategy for 2026-2028, which includes measures to reduce its case backlog.

The NACP maintains its central role in anti-corruption policymaking and prevention and adopted its institutional strategy in September 2025. Concerns continue to be raised about its impartiality in some of its operations and its effectiveness, and there were unconfirmed allegations of bribery involving NACP officials following a NABU investigation. The NACP should implement the outstanding recommendations set out in the 2023 independent assessment report of the NACP’s effectiveness. The next independent assessment of the NACP’s effectiveness should be conducted without delay and apply a credible methodology with credible criteria. The asset declaration system still needs to be strengthened to prevent and better detect unexplained wealth. Practical and legal shortcomings affecting the verification process have to be addressed, including through a comprehensive revision and a recalibration of the risk-based prioritisation methodology, which should focus on top officials and cases with significant discrepancies. The personal scope of the obligation to declare assets should be extended to cover staff of private offices of high-level political officials, including advisers and assistants, and top executives of all state-owned enterprises. Legislative amendments should be introduced to minimise risks when declaring cash held outside the banking system.

The NACP has powers to oversee compliance with lobbying regulations. It stepped up its work by setting up a dedicated unit and adopting a specific regulation on monitoring and control, which should be revised in light of the initial implementation experience. The Transparency Register is fully functional and contains all the required information, which is publicly accessible.

The NACP has created sectoral expertise units, which should be further empowered to provide additional methodological support to anti-corruption units and officials in public bodies and state-owned enterprises, with a focus on high-risk sectors. The skills, professionalism, integrity and accountability of anti-corruption officers should also be strengthened.

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The law provides for a comprehensive system of corruption risk management, but the applied practices require further streamlining. The quality of corruption risk assessments and the anti-corruption programmes adopted in public agencies have often been weak: significant risks are not identified, mitigation measures not relevant, and there is no robust mechanism for following up implementation effectively. The NACP should carry out a comprehensive revision of its methodology for corruption risk assessment, including through a sector-specific approach. Further progress is required to better integrate corruption risk management with overall risk management in public-sector institutions. In addition, the system of designated anti-corruption units and staff should be reformed to improve its effectiveness.

The advanced digitalisation of public services has reduced corruption risks in the areas concerned.

Fundamental rights

General framework

The general framework for fundamental rights is satisfactory. Martial law has led to some restrictions, but they have generally been proportional to the security situation and have been applied cautiously. Ukrainian institutions should continuously assess these restrictions and, in consultation with the affected groups, proceed with the required steps to lift them if they are deemed to be unnecessary or disproportionate. A strategy to swiftly restore all restricted rights and freedoms should be developed, to be implemented once security circumstances permit and martial law ends. A substantial reform of the Civil Code is ongoing. It will be important to ensure broad stakeholder consultations and full alignment with European human rights standards and the EU acquis. The application of Ukraine’s domestic sanctions regime should remain within the boundaries set by the European Convention of Human Rights.

International human rights instruments

Cooperation with international human rights bodies and follow-up to their recommendations is satisfactory overall. Ukraine has ratified most of the key international human rights instruments. Following the entry into force of the Rome Statute in January 2025, work is ongoing to ensure comprehensive alignment of the Criminal Code of Ukraine with the Rome Statute and broader international criminal law standards.

European Court of Human Rights

Cooperation with the European Court of Human Rights (ECtHR) and implementation of its judgments still needs to improve. During the reporting period, the ECtHR found breaches of the European Convention on Human Rights, relating mainly to the protection of property, the right to a fair trial, the right to liberty and security of persons, and the prohibition of torture. As of 31 August 2026, there were 755 cases under enhanced supervision by the Committee of Ministers. These cases predominantly concern issues relating to unlawful arrests, the length of detention on remand, breaches of the right to life, ill-treatment by police, poor detention conditions and lack of adequate medical treatment, as well as the excessive length of criminal and civil proceedings and lack of effective remedy. Ukraine needs to address the systemic and structural issues raised by the Court in the areas of the

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judiciary, law enforcement and human rights, and to ensure the systematic and timely enforcement of ECtHR judgments.

Promotion, protection and enforcement of human rights

The legal and institutional framework for the promotion, protection and enforcement of human rights is broadly in place. The Parliament Commissioner for Human Rights – the Ombudsperson’s office – operates actively and efficiently despite a lack of resources. It is handling an increasing number of complaints and issued 626 recommendations to state authorities in 2025. Although the regulatory and legal framework has not changed, amendments are still needed to ensure the office’s full financial and operational independence in line with the Paris and Venice Principles and full alignment with the directives on standards for equality bodies. In April 2026, the Ombudsperson’s office was re-

accredited with ‘A’ status. In September 2025, a Military Ombudsperson was set up as a permanent auxiliary body under the President of Ukraine to protect the rights of military personnel. Ukraine still needs to finalise the update of its national human rights strategy until 2035 and develop a corresponding action plan through an inclusive public consultation process. Further efforts are still needed to ensure the coordination of state policy and institutional action to support those living under occupation or displaced by the war.

Prevention of torture and other forms of ill-treatment

Ukraine’s legislation provides some legal guarantees for the prevention of torture and ill-treatment. Further alignment with international law and progress on criminal proceedings in torture cases is key to ensuring accountability. Torture and ill- treatment remain a concern in Ukraine’s prison and detention facilities. Investigations by specialised SBI units should become timelier and more effective to ensure prosecution and conviction of those responsible,

including for the excessive use of force. Law enforcement and custodial powers should remain separate and independent external oversight mechanisms strengthened and reflected in the penitentiary laws. Annual public reporting to Parliament on the work of the OPG and the SBI in cases of torture has yet to be introduced.

A new online channel allows prisoners to submit anonymous complaints to the Department on Execution of Criminal Punishments. Senior human rights inspectors under the central

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penitentiary administration can also receive complaints, but their independence from prison management should be strengthened to ensure confidentiality and prevent intimidation or reprisals. Access to adequate healthcare, including specialised services, remains a concern. Training on the medical documentation of bodily injuries continued, but implementation of the Istanbul Protocol needs to be more effective. The recommendations of the Committee for the Prevention of Torture to transfer responsibility for prison healthcare to the Ministry of Health have not been implemented.

The National Preventive Mechanism (NPM) plays a crucial role in monitoring places of detention but requires adequate and sustainable funding, including compensation for CSO monitors participating in NPM visits, and legislative amendments to ensure full operational independence. Implementation of NPM recommendations by public authorities at central and local levels still needs to improve. An external oversight mechanism to prevent ill- treatment in military recruitment centres should be put in place, for instance through regular NPM visits.

Execution of criminal sanctions

The system for executing criminal sanctions, including probation, needs to be further improved. The Criminal Code has not yet been amended to reflect this,andthe mechanism for reducing the length of sentences required for

conditional early release or for the replacement of punishment is not yet operational. Amendments to the Criminal Procedure Code are also needed to enable appeals against the Complaints Commissions’ decisions.

Ukraine should continue improving material detention conditions, medical care and prevention in penitentiary facilities to meet standards set by the Council of Europe’s Committee for the Prevention of Torture and the Commission’s Recommendation on procedural rights of suspects and accused persons in pre-trial detention and on material

detention conditions, including in pre-trial detention centres. Limited capacity and resources reduce the effectiveness of probation services. Access to rehabilitation, including educational and vocational training, should be strengthened to facilitate reintegration and reduce recidivism.

Protection of personal data

The legal framework for the protection of personal data and the capacities of the data protection authority remain insufficient. In the existing model, the Human Rights Commissioner can only identify breaches and initiate proceedings, while court takes final decisions. This model falls short of EU standards requiring independent regulators with autonomous enforcement and sanctioning powers. Key draft laws registered in 2022 are still

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awaiting final adoption. In 2025, the Human Rights Commissioner was consulted on more than 300 legal acts concerning personal data protection rights.

Freedom of thought, conscience and religion

Ukraine provides legal guarantees for freedom of thought, conscience and religion. Incidents of hate speech and intimidation based on religion or belief are rare. The country continued implementing the Law on religious organisations, which prohibits the activities of religious organisations affiliated with the Russian Orthodox Church in Ukraine. Ukraine should continue to uphold international standards on freedom of religion or belief, including ECtHR case law, especially at local and regional level. A preparatory analysis was conducted on safeguards against criminal prosecution for conscientious objection, taking into account the amicus curiae brief of the Venice Commission of March 2025, but a new law on alternative service during martial law remains pending. In July 2026, a draft law to introduce a special coordinator for preventing and combating antisemitism was withdrawn due to the change of government. In April 2026, the law strengthening criminal responsibility for antisemitism was signed by the President.

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Freedom of expression and media freedom

Ukraine provides adequate legal guarantees for freedom of expression and has an overall enabling environment for free, independent and professional media. However, constraints remain due to security risks, economic pressure on the media and restrictions under martial law.

Intimidation of journalists

Efforts to ensure the safety and protection of journalists continue amid Russia’s war of aggression. Journalists and media workers remain directly targeted by Russian forces. Harassment and intimidation of journalists in government-controlled areas continued to be recorded on similar levels as in previous years. Investigations remain uneven and their effectiveness should be improved. At the same time, free legal assistance, including support to journalists facing legal pressure and strategic lawsuits against public participation (SLAPPs), was provided in cooperation with civil society and public authorities. As of September 2026, five SLAPP cases had been registered, while efforts to establish systematic monitoring and strengthen the legal framework to prevent abusive litigation continued, and a parliamentary working group was preparing an anti-SLAPP package. In these efforts Ukraine should ensure alignment with the EU Anti-SLAPP legal framework.

Legislative environment

In January 2026, a law improving the transparency of state and local authorities and access to public information entered into force, requiring greater openness from parliamentary committees. However, other media-related reform initiatives remain stalled in Parliament. The law protecting lawyers from being identified with their clients has raised concerns that it is not in line with the relevant Council of Europe Convention, lacks an adequate protection of freedom of expression and does not ensure legality, legitimacy, necessity, and proportionality. Ukraine should implement preparatory steps to help national authorities fulfil their regulatory responsibilities upon accession and enable civil society to support implementation of the European Media Freedom Act and the Digital Services Act. Operational readiness will require institution-building, awareness-raising and stakeholder engagement.

Implementation of legislation/institutions

Independent media organisations are actively involved in many national working groups, expert councils and advisory bodies, reflecting strong integration into policymaking,

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regulatory and law enforcement processes. The regulator, the National Council on Television and Radio Broadcasting, still lacks the resources to fully carry out its mandate and to reach functional independence.

Public service broadcaster

Ukraine’s public broadcaster, Suspilne, continues to operate independently. Although it received a slight increase in state funding for 2026, but still below the legal requirement. Despite these constraints, Suspilne continued to build its audience and maintain a strong reputation for balanced and impartial coverage. As of 1 January 2026, the state-run channel ‘Rada TV’ ceased broadcasting in the national telethon ‘Unified News’ . In 2026, substantial public funding of around UAH 1.5 billion for the telethon continued, despite declining levels of public trust and outreach. Ukraine should address concerns regarding its impact on media pluralism and the need for its reassessment.

Economic factors

The war continues to severely affect independent media, especially regional and frontline outlets. At the same time, disclosure of ultimate beneficial owners remains inconsistent, with fewer than half of leading media clearly identifying natural persons as ultimate owners, while the national regulator’s public register of media entities which includes media ownership data requires further adjustments in alignment with all EMFA requirements. In addition, civil society noted increases in transparency standards of major online outlets, including basic editorial information, such as leadership and editorial staff. Ukraine should further align its framework with EU law requirements.

Internet

Ukraine has not taken steps to address risks related to the abuse of internet restrictions. The country has also not aligned the use of face-recognition systems and other intrusive technologies with European standards on personal data protection and privacy.

Professional organisations and working conditions

The war continues to create serious safety and financial pressures, particularly for regional and frontline media. Low salaries, fragile job security and declining economic prospects remain a concern, with professional organisations further expanding legal, psychological and emergency support. Working conditions still largely depend on the financial stability of individual media outlets.

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Freedom of assembly and association

Overall, Ukraine provides adequate legal guarantees for freedom of assembly and association. The registration of associations remains accessible without undue religious, ethnic or political restrictions. Authorities continue to exercise restraint when introducing temporary restrictions on the right to peaceful assembly under martial law, but these are not always consistently applied or clearly communicated across the country. The absence of a dedicated framework law for peaceful assembly aligned with European and international standards, combined with martial law powers, continues to create legal uncertainty and uneven practice.

Labour and trade union rights are covered in Chapter 19 - Social policy and employment.

Property rights

The legal and institutional framework for enforcing property rights is broadly in place. Property rights have continued to be generally respected, and the modernisation of the state land registry system continues. An information campaign targeting owners of non-registered real estate acquired before 2013 was launched. The authorities apply property rights

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legislation introduced at the start of the full-scale invasion, in particular on the monitoring of and compensation for property damage. A secure data exchange with the international register of damage was also put in place.

Non-discrimination

Ukraine has established a stable framework of anti-discrimination laws, partially aligned with the relevant EU acquis and Council of Europe standards. However, certain gaps and shortcomings remain, in particular full alignment with the Racial Equality Directive and the directives on standards for equality bodies.

Anti-racism and hate offences

The legal and institutional framework for anti-racism and hate offences is incomplete. Instances of hate offences are generally prosecuted, but gaps remain in implementation and enforcement. As concerns the criminal law framework for hate offences, alignment with the EU acquis is required, in particular the 2008 Framework Decisions on combating racism and xenophobia. The legal framework should include a clear definition of the concept of ‘intolerance’ within Ukrainian criminal law to ensure legal certainty, liability of legal persons, mechanisms to respond to hate speech, as well as ‘descent’ as ground for protection. The Prosecutor General’s order of September 2025 on the Unified Register of Pre-Trial Investigations provides for the systematic collection of hate crime data. Ukraine should continue to strengthen the expertise of law enforcement officers, prosecutors, judges and staff within the Ombudsperson’s office to tackle discrimination, hate speech, and hate crimes more effectively, including through training and capacity building.

Gender equality

The legal and institutional framework for gender equality and combating gender-based violence is partially aligned with the EU acquis. Effective implementation and enforcement, especially at local level, need to be improved. In February 2026, permanent commissions were set up to respond to cases of gender-based discrimination, gender-based violence and sexual harassment within state authorities and the armed forces. Effective coordination with the national equality body, however, has yet to be ensured. The draft state social programme on domestic violence and gender-based violence prevention until 2030 has been developed further by taking into account the recommendations of the Council of Europe’s baseline evaluation report published in September 2026.

Further alignment with the EU acquis is needed, including through the adoption of legislation to align with the Directive on equal treatment between women and men in the access to and supply of goods and services, the Istanbul Convention and Directive on combating violence against women and domestic violence. The availability of specialist support services for victims varies across the country and needs to be strengthened, including access to legal aid and specialised

psychological, social and health services, alongside access to effective state compensation. Local CSOs remain the main providers of support services compensating for gaps in state-level support but faced significant funding cuts and disruptions of services throughout

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2025. Systematic survivor-centred and trauma-informed training for all relevant professionals should continue, particularly for the police, prosecutors, the judiciary, health care and social service providers. The Law on Legal and Social Protection of the Rights of Survivors of Sexual Violence Related to the Aggression of the Russian Federation against Ukraine and provision of Urgent Interim Reparations to Them should be implemented further with stable funding ensured.

Data collection on domestic violence has improved, with law enforcement data disaggregated by type of offence, age, sex and family relationship. However, underreporting persists, particularly among vulnerable groups, such as Roma2 women and women with disabilities. The prevalence of violence against women in Ukraine appears to have been compounded by Russia’s war of aggression. State preventive measures continued to expand, with perpetrator programmes approved in 90% of territorial communities.

Rights of the child

The legal and institutional framework for the rights of the child is broadly in place, but implementation and enforcement need to be improved. Ukraine continued to strengthen its child protection system, including measures for the protection and reintegration of children from territories temporarily occupied by Russia. In November 2025, the National Council for the Protection of Children’s Rights was set up to coordinate child protection policy across the relevant authorities.

Ukraine has demonstrated steady progress in implementing its deinstitutionalisation reform, prioritising the right of every child to grow up in a family environment. Since 2023, the number of children in institutions has fallen but numbers remain high (23 524 children in 2025), especially among children with disabilities, and more targeted efforts to expand specialised family-based care are needed. Most local authorities still lack the resources and capacity to sustain quality, community-based social services and workforce, as well as alternative care options.

On child-friendly justice, Ukraine’s National Strategy on child justice and its Operational Plan for 2025-2028 are in place. Draft laws to further align with the EU acquis and international standardshave been developed but have not yet been registered in Parliament. The restorative justice programme continued, with high mediation successful rates, while amendments to legally mandate the involvement of a lawyer and a psychologist for minors remain pending. The use of diversion and restorative justice should fully respect procedural safeguards and the best interests of the child. Progress was made in expanding child- friendly, interdisciplinary and multi-agency services, bringing the total number of operational Barnahus centres to 16. Their availability should be further expanded and their operation adequately regulated and integrated into the child protection and justice systems. Specialised training for all professionals working with children in the justice system should continue. Ukraine should further prioritise the use of alternatives to detention and non- custodial and rehabilitative measures for children in conflict with the law should be further strengthened.

Persons with disabilities

Ukraine’s legal and institutional framework for the rights of persons with disabilities remains incomplete, with insufficient implementation and enforcement. Due to the impact of Russia’s full-scale invasion, the number of persons with disabilities (both veterans and civilians) continues to grow. Further alignment with EU acquis is needed, notably the European Accessibility Act, and relevant sectoral legislation. Accessibility for persons with disabilities remains insufficient and their meaningful participation and consultation in the reform process

2 In line with the terminology of European institutions, the umbrella term ‘Roma’ is used here to refer to

a number of different groups, without denying the specificities characteristics of these groups.

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needs to be ensured. A new system for determining disability status based on everyday functioning has replaced the previous medical-social expert commissions. However, a comprehensive mechanism for assessing individual functioning across different areas, together with the institutional arrangements for determining disability status, has yet to be fully established. Further efforts are needed to ensure the accessibility the built environment, infrastructure, and services, particularly in the context of reconstruction, and to strengthen mechanisms for persons with disabilities to exercise and claim their rights. Systematic barriers faced by persons with disabilities, particularly women with disabilities, need to be better identified and addressed.

Deinstitutionalisation remains a challenge. Implementation of the Strategy on Deinstitutionalisation of Care for Adults with Disabilities and Elderly Persons until 2034 needs to advance, including through effective coordination through a dedicated body. Quality community-based services supporting independent living remain insufficient, including supported living and day care, and lack sustainable financing. The reallocation of resources from institutional care to community and family support services must be accelerated. Gaps in support for persons with disabilities in situations of particular vulnerability remain, including internally displaced persons with disabilities and older people, leading to continuous or new institutionalisation as a result of evacuation measures. Ukrainian legislation continues to allow for full deprivation of legal capacity and substitute decision-making through guardianship, in particular for persons with intellectual disabilities, contrary to Article 12 of the UN Convention on the Rights of Persons with Disabilities. Supported decision-making models have yet to be developed.

LGBTIQ+ persons

The legal protection of the rights of lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ+) persons remains insufficient. Societal acceptance of LGBTIQ+ persons continued to increase, but progress on key legislative reforms remains stalled. No specific LGBTIQ+ equality action plan or strategy has been adopted. Amendments to the Code on Administrative Offences and the Criminal Code to prevent and combat discrimination have yet to be adopted. Same-sex couples continue to lack legal recognition and protection, despite the ECtHR judgment in Maymulakhin and Markiv v. Ukraine. Ukraine is not aligned with the Council of Europe recommendations on sexual orientation and gender identity.

Procedural rights of suspects and accused persons and rights of victims of crime

The legal framework for procedural rights is partially aligned with the EU acquis, but more efforts are needed to align further with the EU acquis on victims’ rights and compensation to crime victims. Ukraine’s criminal procedural law is mostly but not fully aligned with EU standards. The scope of application of procedural rights and the procedure to challenge the quality of interpretation in criminal proceedings needs to be aligned with the EU acquis. Appropriate remedies to violations of the presumption of innocence need to be developed, and aspects related to in absentia proceedings should be improved, in particular as regards the suspect’s and accused person’s awareness of the trial.

Ukraine’s legislation on victims’ rights is not fully aligned with the Victims’ Rights Directive and the Directive relating to compensation to crime victims. The right to an individual needs assessment to determine appropriate protection measures is not yet enshrined in the criminal procedural legislation. Ukraine should adopt a general accessible reparation mechanism for victims of violent intentional crime in line with the EU acquis. In June 2026, the required implementing legislation under the Law on the legal and social protection of victims of sexual violence related to Russia’s war of aggression was adopted. However, the commissions for assessing victims’ applications for immediate reparations need to be put in place swiftly, and the funding of the compensation mechanism properly ensured. Some categories of victims of war crimes continue to face challenges in obtaining victim status and accessing related benefits. In 2025, the free legal aid system provided more than 800 000 instances of legal assistance and eligibility was expanded to include close relatives and

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family members of persons missing under special circumstances. For cases involving children, the quality standards for free legal aid were updated. Interagency collaboration also improved with the introduction of a new system to transfer calls from the police hotline to legal aid services.

Protection of minorities

The legal and institutional framework for the protection of persons belonging to national minorities is broadly in place, and the rights of persons belonging to national minorities continue to be upheld. As part of the implementation of the Action Plan for the Protection of the Rights of National Minorities, which was revised in June 2026, Ukraine introduced several measures in the field of education, culture, the preservation of endangered languages and indigenous groups, including the Crimean Tatars. In September 2025, the Law on vocational education extended the use of EU official languages as languages of instruction to private vocational and professional pre-higher education institutions. The Council of Public Associations of National Minorities (Communities) still needs to develop sufficient capacity to actively represent and promote the interests of national minorities at national level. Stronger central coordination is also needed to strengthen the limited involvement so far of the relevant ministries, implementing bodies, and regional and local administrations in implementing the Action Plan.

Roma

The legal and institutional framework for Roma is largely in place. In March 2026, Ukraine adopted the Action Plan 2026-2028 for the Implementation of the Roma Strategy, and the President of Ukraine proclaimed 31 August as the Romani Language Day. The adoption of resolutions by the Cabinet of Ministers facilitating access to documents is expected to support undocumented Roma. However, implementation and enforcement of Roma policies remain weak, and Roma people still face marginalisation. Social and professional inclusion should be prioritised, including through better access to services at local and national levels. In addition, the relevant authorities would benefit from clear operational guidelines to implement Roma policies effectively on the ground.

Internally displaced persons

Based on June 2026 data from the International Organisation for Migration, 3.9 million people were displaced within Ukraine, and another 5.8 million people fled Russia’s military aggression and were registered by UNHCR elsewhere as of June 2026. In June 2026, the government. adopted a new Strategy of State Policy on Internal Displacement for the period until 2030 and a new law “On Ensuring the Rights and Freedoms of Internally Displaced Persons” was signed by the President. Challenges persist in ensuring the evacuation of displaced older people and persons with disabilities, providing them with accessible facilities and housing and giving them adequate social support. Ukraine still needs to ensure that the protection of people coming from the occupied territories and of internally displaced persons remains a priority.

Citizenship rights

The law allowing Ukrainians to hold dual citizenship of certain other countries, including EU Member States, entered into force in January 2026. Attention should be paid to measures aiming to protect the rights of Ukrainian nationals in occupied territories (in particular children born under occupation) who are forced to accept Russian citizenship. In the event of accession to the EU, Ukraine would need to apply the Court of Justice’s case-law on the loss of EU citizenship.

2.2.2 Chapter 24 - Justice, freedom and security

The EU has common rules for border control, visas, external migration and asylum. Schengen cooperation entails the lifting of border controls inside the EU. Member States

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also cooperate in the fight against serious and organised crime and terrorism, and on judicial, police and customs cooperation, all with the support of the EU Justice and Home Affairs agencies.

Fight against serious and organised crime

The legal framework for serious and organised crime is partially aligned with the EU acquis. The capacity to fight serious and organised crime needs to be improved.

General framework

Legal alignment, strategic and institutional frameworks

Ukraine made no progress in aligning with the EU acquis on the fight against serious and organised crime: this should be prioritised in the next reporting period.

The Criminal Procedure Code should be amended to clearly delineate investigative jurisdiction among pre-trial investigation bodies and to clarify the procedures for transferring criminal proceedings from one pre-trial investigative body to another. Ukraine also needs to adopt a new law on law enforcement agencies (LEAs). This is a crucial step to comprehensively reform the organisation of LEAs, strengthen their accountability and boost integrity measures. Ukraine also needs to update the Law on the fight against organised crime, which is outdated and not in line with the EU acquis,and amend the Criminal Code,particularly relating to the liability of legal entities.

The implementation of the overarching strategic plan on law enforcement reform (OAS AP) is ongoing. According to the Ministry of Internal Affairs, 27% of the measures have been implemented, but many others have been delayed. In February 2026, the Coordination Council in charge of supervising the OAS AP’s implementation was set up. However, the Office of the Prosecutor General (OPG) has not yet nominated its representatives. Considering the crucial role of the OPG in implementing the OAS AP (it is responsible for implementing 103 of the plan’s 198 measures), a representative should be appointed without delay to ensure a steady pace of reform. To effectively fulfil European integration commitments in this policy area, it is crucial to ensure constructive relations between Parliament, Government and the OPG.

In November 2025, Ukraine completed the serious and organised crime threat assessment (SOCTA) for 2021-2024. Based on the SOCTA results, Ukraine needs to finalise a Strategy for Combating Organised Crime for 2026-2030. Ukraine has not fully implemented the 2025 comprehensive action plan to combat organised crime, which was based on the previous SOCTA. Ukraine has still not set up a permanent national coordination body for the fight against organised crime, which is long overdue. There is lack of consensus on which body should take up the role of the national coordinator as well as on its mandate and powers.

The adoption of the Financial Investigation Strategy and its Action Plan are delayed. The Asset Recovery Strategy and its Action Plan expired in 2025, and the successor strategic documents have not yet been adopted. The re-attestation of the staff of the Economic Security Bureau of Ukraine (ESBU) started in November 2025, alongside the selection of new staff. The first round of re-attestation should be completed by February 2027. The ESBU has started to show good results in de-shadowing Ukraine’s economy (i.e. reducing unreported economic activity), despite its very limited capacity. Currently, the ESBU has only 29% of the staff it requires (1 145 out of 4 000). Hiring new staff is complicated as the salaries and other social guarantees of ESBU staff are considerably lower compared with certain other LEAs. Further progress is needed in strengthening the operational independence, status and capacity of the ESBU, including improving access to data.

The selection process for the head of the Asset Recovery and Management Agency (ARMA) had to be relaunched as no candidate was successful in the first selection process. An independent audit of ARMA’s performance was conducted, and the inventory of managed assets was completed. Most of the implementing legislation required to give effect to the

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ARMA reform was adopted, although revisions are needed to address shortcomings in the selection of asset managers and the absence of judicial supervision. Amendments to the Criminal Procedure Code remain necessary to regulate relations between ARMA and public prosecutors.

The reform of the State Bureau of Investigation (SBI) is under preparation. Given the mandate of the SBI, in particular its investigative powers over members of the government and NABU staff, the reform law should include a high level of institutional independence and safeguards. The reform should: (i) provide for the meaningful involvement of international experts, in particular in the transparent and merit-based selection procedure for the head of the SBI; (ii) put in place a mechanism for the attestation of managerial staff with involvement of independent experts nominated by international partners; and (iii) provide for an external performance assessment conducted by independent experts nominated by international partners. Additional efforts are needed to strengthen the SBI’s internal corruption prevention mechanisms.

In the reporting period, no major steps were taken to reform the Security Service (SSU). It is important to focus the SSU’s mandate on national security tasks. Its pre-trial investigation functions should be either transferred to the dedicated LEAs or strictly limited to crimes relating to its core mandate. Effective safeguards are also needed against abuse, and internal and external oversight and anti-corruption mechanisms need to be strengthened. The SSU’s de facto monopoly on wiretapping communications should be lifted. Ukraine needs to institutionalise the mechanisms of public control and oversight in its internal security sector in line with EU Member States’ best practices. The external oversight body, such as an ombudsperson, should be independent, have adequate powers and access to all necessary information to exercise its mandate, and operate at both central and regional levels.

In the reporting period, NABU and SAPO reported undue pressure on their investigations from law enforcement and security agencies, which risks undermining the fight against high- level corruption and trust in Ukraine’s law enforcement. Abuses of powers by LEAs need to be addressed effectively.

There was no progress in introducing merit-based selection procedures for the managerial positions in the central and regional offices of the National Police of Ukraine (NPU) with meaningful involvement of independent experts. In late 2025, the NPU presented the ‘Integrity Police’ IT tool, which helps assess staff compliance with asset declaration obligations under the anti-corruption legislation. However, further efforts are needed to strengthen the integrity framework, the disciplinary mechanism, the internal control system and public oversight of the NPU. This need is highlighted by several corruption cases involving managerial level staff of the NPU that were identified during the reporting period.

Ukraine adopted the Human Resources Management Strategy (HRM Strategy) for LEAs (and the Prosecutor’s Office) until 2030, introducing a modern approach to human capital management on the basis of the principles of equality and non-discrimination. However, additional steps are needed to ensure its proper implementation. Ukraine approved the methodological recommendations on preventing and counteracting possible gender discrimination and sexual harassment in LEAs and the Prosecutor’s Office.

Implementation and enforcement capacity

Ukrainian home affairs institutions continue to demonstrate strong resilience and determination to deliver on their core mandates, while engaging in countering the Russian war of aggression. The risks of war-related crimes linked to trafficking in arms, illicit drugs and human beings remain high.

The implementation of risk and criminal analysis in the field of combating organised crime has been strengthened by institutionalising the SOCTA methodology across the relevant agencies. However, further efforts are needed to strengthen LEAs’ institutional and

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operational capacity to implement strategies got organised crime and their associated action plans.

Intelligence-led policing is at an early stage of development. This is due to: (i) the lack of a single IT law enforcement infrastructure for information and intelligence gathering and sharing; (ii) fragmented and non-interoperable databases and registries; (iii) limited capabilities in using analytical tools; (iv) the lack of a standardised interagency approach to analysis; and (v) the insufficient use of analytical products in decision-making. A draft law on criminal intelligence is under preparation

Interagency cooperation remains weak due to: (i) the lack of a suitable IT infrastructure for sharing information; (ii) the related overly bureaucratic procedures; (iii) a lack of trust; and (iv) the overall reactive approach of LEAs. The powers of LEAs for conducting pre-trial investigations need to be clarified. Frequent disputes about the competence of LEAs to conduct pre-trial investigations sometimes result in the inadmissibility of evidence in court, which undermines complex cases against corruption and serious and organised crime

Efforts to combat large-scale smuggling in Ukraine should be strengthened by making cooperation between the Economic Security Bureau (ESBU) and the State Customs Service (SCS) more operational and effective, strengthening referral mechanisms, improving information exchange and ensuring practical access arrangements.

Ukraine’s capacity to protect witnesses involved in criminal cases effectively is fragmented across LEAs. In addition, Ukraine should strengthen and harmonise forensic expertise ensuring its quality, efficiency and integrity.

In 2025, there was a slight increase in the number of organised groups and criminal organisations identified (2025: 677; 2024: 663). The number of criminal investigations, indictments and completed criminal proceedings increased for the serious crime cases, however the number of criminal investigations and indictments decreased for the organised crime cases.

There is a pressing need to review the law enforcement model to make it more proactive and preventive and reconsider interagency and international police cooperation to make the fight against organised crime more effective.

Financial investigations remain largely underused, except by NABU and ESBU, which have set up specialised units. Similar units should be introduced in the NPU. Data collection on

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financial investigations is expected to improve, following the OPG’s instruction to track them in the Register of Pre-Trial Investigation. Improved skills and tools are needed to ensure that investigators adopt the ‘follow the money’ approach, including access to public and private registers and adequate forensic capacity for economic crime investigations. Practice- oriented methodological guidance and templates have yet to be adopted to ensure the effective implementation of the 2024 Joint Order on financial investigations.

The absence of consolidated statistics on asset freezing and confiscation remains a major obstacle to assessing their effectiveness. Available data point to an insufficient use of confiscation mechanisms in criminal proceedings.

Law enforcement cooperation

Over the period of assessment, Ukraine and Europol have further strengthened their cooperation. There is a regular information exchange, supporting joint operations and analytical work with different Europol units. Organised crime and financial investigations and, increasingly, environmental crime are integrated effectively into EU frameworks such as the European Multidisciplinary Platform Against Criminal Threats (EMPACT). It is expected that international police cooperation will be improved by introducing single points of contact (SPoC). Work is in progress through ongoing reforms spanning from legislative alignment to the development of technical systems.

Ukraine continued to participate in the implementation of 223 operational actions within the framework of 15 operational action plans in ten priority areas of combating crime under the previous EMPACT cycle (2022-2025). The EMPACT cycle (2026-2029) includes 13 operational action plans to address seven EU crime priorities to which NPU is participating. Ukraine is a very active participant in EMPACT framework and participates in 217 operational actions. Ukraine has also taken the role of a co-action leader of four operational actions under the Most Threatening Criminal Networks and Individuals (MTCN-I), Synthetic Drugs and New Psychoactive Substances (SYD/NPS) and Trafficking in Human Beings (THB) operational action plans. Attention should be paid to amendments to certain operational action plans (MTCN-I, Firearms and Explosives) initiated by European partners and agreed with Ukraine in response to new threats related to Russia’s war of aggression.

Ukrainian LEAs are actively integrated into the EU’s common security system, and Ukraine is actively involved in international cooperation in the field of law enforcement. In November 2025, ARMA was invited by the European Public Prosecutor’s Office (EPPO) to join a project entitled ‘Safeguarding EU-funded support to Ukraine against Organised Crime infiltration’, implemented under the EMPACT´s MTCN-I operational action plan.

Ukrainian law enforcement officers regularly participate in regional and pan-European training in cooperation with the European Union Agency for Law Enforcement Training (CEPOL). Ukraine is encouraged to make full use of training opportunities provided by CEPOL, including in the area of emerging threats. In 2025-2026 194 Ukrainian law enforcement officers were given access to the LEEd CEPOL educational platform.

To establish a sustainable professional development, Ukraine is encouraged to adopt the sectoral competencies and integrate knowledge acquired through CEPOL capacity-building actions to its law enforcement training system.

Ukraine should accelerate setting up a Passenger Information Unit by adopting a comprehensive legislative framework for processing and exchanging Passenger Name Record (PNR) data. The current fragmented legislative initiatives, led separately by the Security Service of Ukraine and the State Border Guard Service (SBGS), should be consolidated to ensure a more coordinated approach. The authorities should prioritise interagency consultations to reach a final agreement in line with EU standards, particularly for counterterrorism and border security purposes.

Judicial cooperation in criminal matters

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Judicial cooperation needs to be improved. The legal framework for judicial cooperation in criminal matters is partially aligned with the EU acquis to the extent that alignment is already possible. Between September 2025 and August 2026, Ukraine was involved in 120 new cases at the European Union Agency for Criminal Justice Cooperation (Eurojust), including 79 as requesting country. Most cases were related to organised crime, money laundering and fraud. Ukraine participated in 55 joint investigation teams (JITs), including 20 new ones. Ukraine cooperates with the European Judicial Network (EJN) and developed cooperation with the EPPO, which is taking place based on working arrangements. The EPPO sent 3 requests for mutual legal assistance to the Ukrainian authorities in 2025. At the end of 2025, the EPPO had 5 active cases with links to Ukraine.

Crime areas

Investigation and criminalisation of money laundering

Legislative amendments introducing registers of bank accounts and of beneficial owners of trusts continue to be blocked in Parliament. Their adoption should be prioritised, and problematic provisions delaying the registers’ operations and access by law enforcement and authorised bodies should be removed. The planned MONEYVAL assessment was postponed.

In 2025 the track record on money laundering cases improved, with an increase in the number of: (i) criminal proceedings (2025: 3 454; 2024: 3 187); (ii) indictments (2025: 594; 2024: 496); and (iii) convictions (2025: 271; 2024: 157). However, a growing majority of people convicted received suspended sentences with probation (2025: 188; 2024: 105). Courts struggled with increased caseloads, with the backlog increasing by 21% by the end of the year. Judgments ordering confiscation nearly doubled (2025: 96; 2024: 51), yet the overall number remained modest.

In 2025 the State Financial Monitoring Service (SFMS) – Ukraine’s financial intelligence unit – transferred 1 441 case referrals to LEAs and prosecutorial authorities, marking an increase compared with 2024 (1 053). There was, however, a substantial decline in the number of referrals submitted to NABU. The number of requests to foreign jurisdictions fell (2025: 455; 2024: 621), while the already low number of criminal cases initiated on the basis of SFMS materials fell further to 2.5% of the total. To improve the effectiveness of case referrals, as well as communication and trust between the SFMS and LEAs, regular independent audits of effectiveness should be conducted. In addition, a transparent and competitive selection procedure for the head of the SFMS should be introduced, including term limits to its mandate.

Cybercrime

The Internet Organised Crime Threat Assessment (IOCTA) has still not been carried out, but preparatory steps are ongoing. The assessment is crucial for moving to a systematic risk- based approach to the fight against organised cybercrime, in line with European standards. The concept of ‘electronic (digital) evidence’ has still not been incorporated into the Criminal Procedure Code.

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Since the beginning of Russia’s full-scale invasion, Ukraine has made significant efforts to protect its internet systems and databases, including critical infrastructure. According to NPU data, the recorded number of cybercrimes dropped by 46% in 2025 compared with 2024.

Child sexual abuse

At the end of 2025, the NPU’s Cyber Police Department created a dedicated unit to deal with online child sexual exploitation and abuse. The department received direct access to the International Child Sexual Exploitation (ICSE) database in 2026. In 2026, the NPU’s Migration Police Department also created a unit handling sexual exploitation of children on the internet.

Trafficking in human beings

In September 2026, the Cabinet of Ministers approved the new State Programme for Combating Human Trafficking until 2030 Ukraine should appoint a permanent National Coordinator on Trafficking of Human Beings. Further progress is needed in: (i) setting up the National Independent Rapporteur on Human Trafficking; (ii) developing and approving a procedure for information exchange and coordination among entities involved in this area; (iii) improving training for law enforcement officers and other specialists on victim identification, support and assistance and protection of victims’ rights; and (iv) investigating trafficking in human beings and prosecuting traffickers.

In 2025, there was a significant increase in the number of victims of trafficking in human beings in criminal proceedings (340 in 2025; 163 in 2024) and of suspects investigated, indicted and convicted of trafficking in human beings.

Migrant smuggling

The regulation of the Criminal Code on the illegal movement of persons across the state border, including its organisation and facilitation, does not fully reflect the EU’s evolving anti- smuggling approach. Stronger intelligence-led and financial investigation capacity are needed to increase the effectiveness of migrant smuggling investigations.

International cooperation in this area was further strengthened through two international task forces coordinated by Europol. Ukrainian law enforcement authorities participated in two pan-European events as part of EMPACT operational action plans, targeting trafficking in children and trafficking in human beings for labour and sexual exploitation. Ukraine continues to take part in the Global Alliance to Counter Migrant Smuggling and endorsed the Global Alliance Joint Declaration during the second international conference in December 2025.

Trafficking in firearms

The legal framework for the acquisition and possession of firearms needs further alignment with the EU acquis. The Criminal Code of Ukraine criminalises the smuggling of weapons, ammunition, explosives and parts of rifled firearms, but it still does not establish criminal liability for the illicit trafficking of essential components of firearms within the country. Ukraine should amend its Criminal Code to fully comply with international standards, particularly the UN Firearms Protocol. As of September 2026, 23 668 firearms and 14.5 million rounds of ammunition had been declared in line with the law. Ukraine needs to adopt a law on the possession of civilian firearms and ensure the existing legal framework is aligned with the

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EU acquis. Ukraine should also urgently adopt the national roadmap to fight against firearms and other small arms and light weapons and ensure its alignment with the Strategy for Combating Organised Crime for 2026-2030.

Ukraine continued to work with EU Member States to reduce the risk of illicit firearms trafficking in a post-conflict context by engaging in different EMPACT operational actions on firearms and by regularly sharing records of lost, stolen and seized weapons with Europol. Further efforts should be focused on data sharing and putting in place effective cooperation between the National Firearms Focal Point (NFFP) and its counterparts abroad and to integrate all LEAs and other relevant agencies which have competences on firearms within the NFFP. Ukraine should streamline coordination with EMPACT and maximise its contribution to the platform, particularly by improving monitoring of trafficking routes connected to Ukraine. In this regard, the designation of a single national focal point for EMPACT coordination remains an urgent issue. According to the NPU’s operational information, the number of firearms-related crimes, in particular gun violence, is on the rise; however, official state statistics do not reflect this specific type of crime. Ukraine should improve reporting on firearms-related crimes and clarify this inconsistent information.

The number of crimes committed with firearms, explosives and ammunition remains high. In 2025, 5476 criminal proceedings were opened for illegal trafficking in firearms, ammunition and explosives, 4676 suspects were served a notice of suspicion, and 4125 indictments were sent to court.

Cooperation in the field of drugs

Ukraine continued to successfully cooperate with the European Union Drugs Agency. Ukraine should align its national priorities with the EU drugs strategy by improving cooperation between the Ministry of Health and the Ministry of Internal Affairs. The Action Plan on the implementation of the National Drugs Strategy lacks measurable goals and does not consider future developments sufficiently.

Ukraine should further align its legislative framework with the EU acquis on drugs, including with the EU list of new psychoactive

substances included in the definition of drugs. The country should also strengthen its institutional framework in this area, particularly through the set-up of a National Drugs Observatory and the launch of an effective national Early Warning System to ensure the timely exchange of information on psychoactive substances.

The use of drugs and other illegal substances is a growing problem. Drugs, especially synthetic drugs, are sold and widely available across Ukraine, including at the frontline. The illicit production of synthetic drugs continues. Drug monitoring is heavily affected by the war. Cooperation between judicial entities and LEAs should increase, alongside international cooperation in this area, including under EMPACT. A coordinated, joint framework (including LEAs and the armed forces) is needed to: (i) enable rapid referral to support and treatment services; and (ii) support intelligence-led operations to counter drug supply and trafficking in military units.

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Ukraine has taken steps to expand international cooperation on tackling illegal drug production and trafficking. For example, in February 2026, the NPU carried out a successful operation in cooperation with Europol and LEAs from Poland and the Republic of Moldova, leading to the dismantling of 34 illegal drug laboratories and 74 warehouses for storing drugs. The operation also resulted in the seizure of 220 kg of PVP, 156 kg of amphetamine, 17 kg of mephedrone, 7 kg of methamphetamine, 47 kg of cannabis, 7 000 MDMA tablets, 47 kg and 284 litres of phenylnitropropene, and more than 20 tonnes of precursors. 27 million doses of drugs were prevented from entering illegal circulation, and 123 members of criminal groups were served a notice of suspicion.

In 2025 there was a slight increase in notifications, indictments, final court decisions and final convictions in cases related to production and trafficking of drugs compared to 2024. Ukraine needs to make additional efforts to improve drug destruction, drug-sample transfers and data exchange.

Counterfeiting of the euro

Ukraine’s legal framework for the criminalisation of euro counterfeiting is partially aligned with the EU acquis. No progress was observed in ratifying the 1929 Geneva Convention for the Suppression of Counterfeiting Currency. Further steps are also needed on: (i) the harmonisation of definitions; (ii) minimum penalties; (iii) the systematic treatment of aggravated offences; and (iv) the integration of specialised investigative tools.

Counterterrorism, prevention and resilience

The legal framework for the fight against terrorism, countering violent extremism and critical infrastructure protection, as well as resilience of critical entities is partially aligned with the EU acquis.

Fight against terrorism and prevention of radicalisation

Legal alignment, strategic and institutional frameworks

The national system to fight terrorism and the dedicated legislation are comprehensive. The SSU is the main agency in the national system and other relevant institutions are involved, ensuring an integrated approach. Ukraine needs to align its anti-terrorism legislation with the EU acquis, in particular the EU Counter-terrorism Directive and the EU Regulation on Terrorist Content Online, including appointing specific competent authorities to issue removal orders. Ukraine should also ensure compliance with the EU acquis on explosives precursors. In June 2026, Ukraine approved a new concept on combating terrorism. Ukraine should also approve a corresponding action plan for its implementation. The country should also set up a coordination mechanism to develop and adopt a strategy and action plan for preventing and countering violent extremism.

Implementation and enforcement capacity

The institutions in charge of counterterrorism work effectively and professionally. The SSU deals with the terrorism threat from Russia’s war of aggression. Its counterterrorism units are also heavily involved in countering and investigating international crimes committed by the Russian authorities. The SSU is also countering the dissemination of calls for terrorism and sabotage attacks by Russian intelligence agencies against both civilian and military targets. The SSU is carrying out a series of countermeasures with good results; however, Russia continues to intensively recruit perpetrators of terrorist and sabotage attacks, in particular

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among vulnerable groups, such as minors, unemployed people and those with criminal records.

Critical infrastructure protection

Legal alignment, strategic and institutional frameworks

The Law on critical infrastructure protection explicitly references the (EU) Directive 2022/2557 on the resilience of critical entities (CER Directive) as a foundational framework. However, additional steps are required to fully align Ukrainian legislation with the CER Directive. Secondary legislation is partially in place, including on the responsibilities of sectoral and functional bodies. Cybersecurity provisions aligned with the NIS2 Directive are also under development.

Ukraine has created a register of critical infrastructure objects and put in place a sectoral identification process coordinated by the State Service of Special Communications and Information Protection (SSSCIP), covering sectors broadly comparable to those set out in the CER Directive. However, the identification methodology and applicable thresholds are not yet fully harmonised with CER Directive’s criteria, and the designation of critical entities at sectoral level is still incomplete but under development. The national resilience strategy is in development, and there is a national critical infrastructure protection plan framework. Sectoral risk assessment processes are ongoing, led by sectoral bodies under SSSCIP coordination, although systematic all-hazards risk assessments aligned with the CER Directive’s methodology across all 11 sectors have not yet been completed.

The institutional framework is in place. The SSSCIP is the authorised coordinating body, and sectoral ministries are designated as sectoral bodies. The SSU, the NPU, the State Emergency Service, the Ministry of Health, the armed forces and others have functional roles in responding to specific threats. Coordination mechanisms between law enforcement, counterterrorism, civil protection and cybersecurity authorities are legally established, although operational coherence, particularly in active wartime conditions, continues to be tested and refined.

Implementation and enforcement capacity

Ukraine conducts ongoing threat and risk monitoring through the SSSCIP. Threat assessments explicitly cover sabotage, missile and drone strikes, and hybrid threat vectors as core risk categories. However, systematic, cycle-based risk assessments and stress tests across all CER Directive-covered sectors remain incomplete. The SSSCIP itself has identified the absence of a dedicated situational centre and secure interagency information- sharing infrastructure as institutional gaps that currently limit comprehensive risk monitoring capacity.

Migration and asylum

Legal and irregular migration and returns

The legal framework for legal and irregular migration management is partially aligned with the EU acquis. The management of legal and irregular migration needs to be improved.

Legal alignment, strategic and institutional frameworks

Interagency coordination and cooperation between the relevant authorities needs to be strengthened further. Full alignment with the EU acquis has not yet been achieved on: (i) the status of third-country nationals who are long-term residents; (ii) the right to family reunification on the Blue Card Directive; (iii) intra-corporate transferees; (iv) seasonal workers; and

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(v) a single permit for work and residence for third-country nationals. The situational centre for monitoring the migration process and assessing migration risks was formally created in February 2026.

The State Migration Policy Strategy and Action Plan have not been adopted. The legislative framework for a mass influx of migrants is in place, but there is still no permanent and effective mechanism for interagency coordination in the event of a migration crisis. The voluntary returns procedure was rarely applied during the reporting period. The rules on passenger information and visa verification obligations for carriers transporting foreign nationals to Ukraine have not been adopted.

Implementation and enforcement capacity

In 2025, the number of irregular migrants detected by the State Migration Service throughout Ukraine increased compared with 2024. The largest number of migrants detected originated from Moldova, Azerbaijan and Russia. Most irregular migrants were detained for irregular border crossings. Cases of illegal smuggling of people have been registered as criminal offences and investigated by the relevant authorities. Migrant accommodation centres have sufficient capacity, although staffing levels remain below the number of envisaged posts.

The 2007 EU-Ukraine readmission agreement was continuously applied, together with the protocols facilitating its implementation signed between Ukraine and 10 EU Member States. The implementing protocols with Hungary, Spain, Bulgaria and Serbia are awaiting signature. The integrated migration management system is not yet fully operational.

Asylum

While the legal framework on asylum is partially aligned with the EU acquis as it was in force until 12 June 2026, Ukraine should focus on developing its national legal framework and operational capacities on migration and asylum to align with the Pact.The management of asylum needs to be improved.

Legal alignment, strategic and institutional frameworks

Due to a lack of capacity and a shortage of staff, allocated by the State Migration Service of Ukraine, limited support is available to applicants for international protection. Ukraine needs to start developing a roadmap for bilateral cooperation with the EU Agency for Asylum.

Implementation and enforcement capacity

The number of applications for international protection was stable during the reporting period. No cases of refoulement or non- admission at the border were reported, although the capacity to integrate recognised refugees remains limited. In 2025, Ukraine received 55 asylum applications, continuing the decreasing trend since the full-scale invasion began. Ukraine should ensure that the conditions for identifying applicants for

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international protection are in line with the EU acquis.

Visa policy

Ukraine’s visa policy is not fully aligned with the EU’s, in particular the list of countries whose nationals require a visa to enter the EU. Ukraine maintains a visa-free regime with 15 countries that are on the EU list of visa-required third countries3. No steps were taken to further align Ukraine’s visa policy with the EU’s in the reporting period. Ukraine’s alignment of its visa policy should focus on countries whose nationals present illegal migration or security risks to the EU. Ukraine should also make greater efforts to tackle the use of fraudulent documents, including passports. The phasing out of non-biometric passports by 2026 is ongoing. The EU acquis compliance assessment of two draft laws was submitted in March 2026, and they were subsequently revised.

The national visa system is largely aligned with the EU acquis, including on the processing of applications and the criteria and process for issuing visas. The issuing of visas at the border was suspended on 24 February 2022 and has not resumed. The European Commission’s eighth report under the visa suspension mechanism, published in December 2025, concluded that Ukraine continues to meet the visa liberalisation benchmarks. Nonetheless, further efforts are needed, where feasible given the ongoing war.

Schengen governance and external borders

The legislative and strategic framework for the management of external borders is partially aligned with the EU acquis. The management of borders needs to be improved.

Legal alignment, strategic and institutional frameworks

The interagency working group on the coordination of activities in the field of Schengen governance was set up in January 2026. The group is tasked with the preparation of the National Schengen Strategy and the Schengen Action Plan by July 2027, covering the whole Schengen framework. Ukraine should adopt additional legislation on border controls and simplify border and customs procedures to be aligned with the Schengen Borders Code andDirective. Full implementation of the integrated state border management (IBM) action plan for 2023-2025 is needed. A new strategy and an associated action plan for 2026-2028, including clear indicators for its assessment and based on principles of the European IBM, have been developed and are awaiting approval by the President and the Cabinet of Ministers.

Implementation and enforcement capacity

The authorities should put in place clear coordination mechanisms among the security authorities and LEAs, including clearly defined roles and responsibilities, structured information-sharing procedures, and regular joint operational activities. These mechanisms should aim to improve effectiveness and ensure a proper response to security and border management challenges and threats.

The institutional capacity and interagency cooperation mechanisms for the IBM should be further improved. During the reporting period, the Interagency Working Group for IBM met twice. The National Coordination Centre needs to be strengthened to bring tangible operational results. There is still no structured crisis response mechanism. The main challenges affecting the capacity of border management agencies to carry out their work, including border surveillance, are shortages of staff, infrastructure, financial resources and equipment. While border controls meet minimum standards, the technical infrastructure requires a significant upgrade. A comprehensive asset management system for the border

3 Armenia, Azerbaijan, Bahrain, Belarus, Ecuador, Kazakhstan, Kuwait, Kyrgyzstan, Mongolia, Oman, Qatar, Saudi Arabia, Tajikistan, Türkiye, and Uzbekistan.

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agencies is required. Half the border crossing points remain closed. Further efforts by the SBGS and the SCS in the fight against corruption at the border are needed.

The Ministry of Finance has endorsed the use of body cameras by customs officials. The systematic and comprehensive use of these devices should be prioritised, with particular focus on the busiest border crossing points along the Ukraine-Moldova and Ukraine-Hungary borders. The SBGS continues to cooperate with the European Border and Coast Guard Agency (‘Frontex’) on information exchange, joint risk analysis, operations and staff training.

Judicial cooperation in civil and commercial matters

Judicial cooperation in civil and commercial matters needs to be improved. The legal framework in this area is partially aligned with the EU acquis.

Ukraine maintained good cooperation with partners on mutual legal assistance in civil and commercial matters and continues to actively participate in the activities of the European Judicial Network in civil and commercial matters(EJN-civil), in which it participates as an observer. The number of EJN cases involving Ukraine has increased significantly in recent years, from relatively low levels in 2017-2018 (approximately three-four cases) to around 20 cases in 2025, reflecting intensified cooperation. The insolvency regime should be further aligned with the EU acquis.

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2.3. ECONOMIC CRITERIA4

2.3.1. The existence of a functioning market economy

Economic governance

Ukraine continued to advance key reform programmes under EU and IMF frameworks despite the challenging wartime environment. A new four-year IMF programme of USD 8.1 billion was approved in February 2026, releasing USD 1.5 billion of financial assistance. The programme’s first review was completed in July, releasing another USD 690 million. A first instalment of EUR 3.2 billion was released under the Ukraine Support Loan’s Macro- Financial Assistance in June. To date, Ukraine has completed 86 out of 178 measures under the Ukraine Plan, bringing total assistance under the Plan to EUR 29.5 billion. Ukraine also continued implementing the National Revenue Strategy, with 90 measures completed by end-2025. However, important reforms remain delayed, such as those of the simplified tax system, personal income tax, and corporate tax anti-avoidance.

Economic governance has further improved, supported by continued engagement with international partners. In February 2026, the Cabinet of Ministers approved the PFM strategy for 2026-2030. Ukraine also took further steps to strengthen its medium-term budgetary framework, in line with the EU acquis. The integration of spending reviews into the annual budget cycle improved, with the latest 2027 state budget explaining how spending review conclusions are reflected in budget preparation. Spending reviews continued to be carried out in priority areas, including healthcare, social protection, housing and veterans’ policy. In December 2025, the medium-term debt management strategy was adopted, setting debt sustainability targets and measures to deepen the domestic bond market. Public investment management was further strengthened. The 2026 state budget marked the first full budget cycle under the updated PIM procedure. The medium-term plan for priority public investment was prepared alongside the Budget Declaration, which also explained how PIM projects were integrated into budget projections. The NBU refrained from monetary financing in 2025, while preserving managed exchange-rate flexibility and keeping monetary policy focused on returning inflation to its 5% target. The NBU continued to implement its foreign exchange liberalisation strategy gradually, introducing new easing packages in January, April, and August 2026.

4 Unless otherwise indicated, the data in this section are taken from the relevant national sources (State Statistics Service, Ministry of Finance and National Bank of Ukraine).

Table: 2023 2024 2025

Ukraine - Key economic figures

GDP per capita (% of EU-27 in PPS) 30.1 28.7 28.4 28.5

Real GDP growth (% change) -3.4 5.5 3.2 1.8

Activity rate of the population aged 15-70 (%), total1) 61.6 57.0 56.6 57.0

Unemployment rate of the population aged 15-70 (%), total1) 11.8 20.0 14.0 12.0

Employment of the population aged 15-70 (annual growth %) 54.5 46.0 48.2 49.4

Nominal wages (annual growth %) 19.6 17.5 23.1 20.8

Consumer price index (annual growth %) 10.9 12.9 6.5 12.7

Exchange rate against EUR 31.4 39.6 43.5 47.1

Current account balance (% of GDP) -2.1 -2.7 3.8 -5.9

Net foreign direct investment, FDI (% of GDP) -2.3 -2.4 -1.9 -1.2

General government balance (% of GDP) -5.1 -20.1 -17.6 -18.6

General government debt (% of GDP) 61.7 64.2 72.3 80.5

Sources: WiiW, State Statistics of Ukraine, National Bank of Ukraine, Ministry of Finance

2017-22

average

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Macroeconomic stability

Economic growth has lost momentum. Real GDPgrowth remained subdued in 2025, slowing to 1.8%, down from 3.2% in 2024. Relentless Russian attacks on energy infrastructure and unfavourable weather conditions reducing agricultural output aggravated the pre- existing supply-side constraints, weighing on exports. War-related disruptions to Black Sea shipping and access to ports further constrained agricultural exports and increased

transport costs, weighing on producers’ incomes and Ukraine’s capacity to generate export earnings and mobilise domestic tax revenues. Persistent labour shortages bolstered wages, with real wage growth averaging 7% in 2025. This allowed for sustained strong private consumption, which, coupled with growing public expenditure, drove up imports. In the first half of 2026, the economy contracted by 0.2%, as economic activity was constrained by energy shortages and supply chain disruptions.

The current account deficit widened sharply to 15.6% of GDP in 2025, roughly double from its 2024 level. This deterioration was driven by a significant widening of the trade deficit, which reached 27.7% of GDP in 2025 (up from 21.2% in 2024). Imports of goods surged due to war-related defence and reconstruction needs, while exports of goods fell slightly because of a weak harvest. The trend continued in the first quarter of 2026, with the current account and trade deficits widening by 55% and 51% year-on-year, respectively. Gross international reserves reached a record USD 57.3 billion at the end of 2025, before declining steadily driven by sustained NBU foreign exchange interventions and foreign debt repayments that outpaced inflows from international partners to USD 51.3 billion by the end of the first half of 2026, equivalent to more than 4 months of imports.

After declining steadily since mid-2025 thanks to tight monetary policy and falling energy prices, inflation has been rising again. After inflation peaked in the first quarter of 2025 at 14.6%, driven by higher electricity and labour costs, rising food prices, and the depreciation of the hryvnia, the NBU tightened monetary policy. Coupled with conducive domestic supply conditions and falling energy prices, this allowed inflation to fall back to below 8% by the end of the first quarter of 2026, before rising oil and gas prices and war-related disruptions reversed the trend in the second quarter. The hryvnia has continued to weaken by about 7% from around UAH 41.1 per USD in mid-2025 to approximately UAH 44.6 per USD in mid-2026, reflecting a controlled, gradual weakening under the NBU’s managed-float regime.

Ukraine’s fiscal deficit increased slightly in 2025, reflecting the war’s continued budgetary impact. The general government deficit widened to 17.6% of GDP in 2025, from 17.2% in 2024, and remained substantially higher when excluding international grants, at 23.5% of GDP compared with 23.1% in 2024. Tax revenues increased markedly, supported

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by measures such as the rise in the military levy on personal income to 5%. However, these gains were outweighed by very large expenditure needs, particularly for defence and security, which reached 42.8% of GDP in 2025, up from 38.5% in 2024. The Pension Fund’s deficit remained sizeable, at an estimated 2.7% of GDP. Public debt continued to rise, reaching 98.2% of GDP in 20255, while financing remained reliant on concessional external financing and more costly domestic borrowing. The concessional terms of external financing remain essential to ensuring debt sustainability.

Ukraine has made further progress in improving revenue administration and the tax system, but significant structural weaknesses persist. The regulatory framework for compliance risk management has been adopted, supporting the State Tax Service’s transition towards a more risk-based approach. Ukraine also introduced e-audits for large taxpayers and adopted legislation introducing rules for reporting on income earned through digital platforms. Steps were also taken to streamline tax exemptions, including through the elimination of the VAT exemption for low-value imported parcels. Customs reform progressed with the appointment of a new head of the State Customs Service through an open competition involving international experts. However, revenue mobilisation remains constrained by high levels of undeclared work, complex tax compliance procedures, and tax avoidance. Key reforms under the National Revenue Strategy, including reforms of the simplified taxation system, personal income taxation, and corporate tax anti-avoidance are pending. In this context, conditionality under the EU and IMF programmes are a major

anchor for advancing tax reforms. The publication of fiscal data at the general government level remains limited, and access to this data is restricted.

The macroeconomic policy mix has remained broadly appropriate and has helped preserve macroeconomic stability despite substantial pressures stemming from the war. Fiscal policy has continued to accommodate exceptional defence and security needs, while remaining heavily reliant

on external support. Going forward, fiscal policy will need to focus on strengthening domestic revenue mobilisation, improving expenditure efficiency, and safeguarding medium-term fiscal sustainability. The IMF and EU programmes, together with the National Revenue Strategy, should remain key anchors for achieving these goals. Monetary policy has remained appropriately tight to contain inflationary pressures, with the NBU preserving managed exchange-rate flexibility, continuing gradual foreign exchange liberalisation where conditions allowed, and refraining from monetary financing. Risks to macroeconomic stability stem predominantly from the prolonged war, which could further damage productive capacity and infrastructure, trigger renewed outward migration, increase financing needs, and weaken the current account balance.

Functioning of product markets

Business

Despite ongoing reform efforts, Ukraine’s business environment remains constrained by structural and wartime challenges. Business surveys continue to identify labour shortages as the primary economic constraint. But companies also suffer from relatively high energy costs and energy shortages, uncertainty related to hostilities, and the physical

5 Public debt includes the EU’s Ukraine Facility, previous Macro Financial Assistance (MFA) operations, and the Extraordinary Revenue Acceleration (ERA) MFA. Other ERA-related contributions from the US, Japan, Canada and the UK are either treated as revenue or as borrowings not counted towards public debt.

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destruction of infrastructure. Under the Macro-Financial Assistance (MFA) programme, the government has taken important further steps to simplify the VAT registration process for businesses. Progress on implementing the 2024 Action Plan on Deregulation is slow, with only one action implemented, namely the adoption of the Law on the basic principles of state supervision, which mandates all supervisory bodies of the state to shift from a punitive inspection model to a risk-based, preventive approach.

State influence on product markets

The state’s footprint in the economy remains high. Ukraine's economy continues to exhibit features of a wartime economy, with the state playing an increasing role. Government spending increased by 1.3 percentage points to 38.9% of GDP in 2025. Energy price liberalisation for households continues to be deferred. In April 2026, the fixed household electricity tariff of UAH 4.32/kWh was extended until at least November 2026, although the preferential tariff of UAH 2.64/kWh lapsed in May 2026. The moratorium on district heating and gas tariff increases for households set out in the July 2022 Law on gas market regulation during martial law is still in place.

Privatisation and restructuring

Some progress was made on privatisation and restructuring during the reporting period. Proceeds from the privatisation of state property amounted to UAH 3.4 billion in 2025, including UAH 2.2 billion received between September and December 2025, fulfilling Ukraine’s own annual target but coming in lower than the 2024 record volume. For 2026, the privatisation revenue target has been set at a more modest UAH 2 billion, reflecting difficult conditions for state divestment, with several high-profile auctions having failed in late 2025 and early 2026, including for the Odesa Port Plant. On restructuring, the Law regulating the activities of legal entities, which entered into force in August 2025, requires all state-owned enterprises (SOEs) to be converted into joint-stock or limited liability companies (with state ownership) or liquidated. 352 decisions on the transformation of SOEs have already been adopted under this law. War remains the primary obstacle to broader privatisation, complicating the identification of assets, creating risks of destruction of privatisation objects, and making privatisation impossible in occupied or active combat territories. On corporate governance, the government adopted resolutions to bolster safeguards and transparency around supervisory board recruitment processes. In April 2026, Ukraine formally adhered to the OECD Guidelines on Corporate Governance of SOEs and launched preparations for an action plan under OECD guidance to tackle persistent implementation gaps. Progress was achieved during the reporting period as the charters of key SOEs, including Ukrenergo, GTSOU, Ukrhydroenergo, and Energoatom have been revised. However, challenges remain in ensuring that the new governance framework is applied consistently in practice. Political considerations continue to influence some appointments to SOE governance bodies. Alignment with OECD standards will be crucial going forward, in particular to ensure that politicians and individuals in a position to influence the operating conditions of SOEs do not serve on supervisory boards.

Functioning of the financial market

The Ukrainian banking sector has remained resilient despite persistent security risks. Banks continued to hold strong profits and liquidity positions, with short-term liquidity coverage ratios around three times the minimum requirement, supported by a stable funding base in which client deposits accounted for over 90% of liabilities. Solvency indicators also remained robust: the 2025 resilience assessment found that nine banks, representing 18% of sector assets, needed higher capital adequacy ratios, while the sector’s Tier 1 capital ratio remained above 15% in early March 2026, well above minimum requirements. Asset quality improved, with the non-performing loan (NPL) ratio falling to 12.6% in May 2026 from 35.5% in May 2025, partly reflecting legacy NPL write-offs and the good quality of new lending. However, the wider stock of distressed assets remains significant, while their resolution is constrained by the limited use of restructuring procedures and an underdeveloped

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secondary market for distressed assets. Following the update of the Financial Sector Development Strategy in August 2025, Ukraine has taken steps to strengthen financial stability and align with the EU acquis. These include supervisory reforms, the banking resilience assessment, and reforms to financial market infrastructure. In April 2026, the National Securities and Stock Market Commission (NSSMC) approved the concept for a draft law on financial market infrastructure. This law aims to strengthen the operational resilience of market infrastructure and further align with the relevant EU acquis.

Lending continued to recover strongly, although credit penetration is low. Net hryvnia loans to businesses increased by 33.5% year-on-year in February 2026, and net foreign- currency business loans rose by almost 28% year-on-year. Lending growth was broad- based across bank groups and covered companies of different sizes, ownership forms, and sectors. SME lending remained at the core of portfolios and demand for investment loans from large corporates rose in the second half of 2025. Household lending also expanded rapidly, with the portfolio increasing by 34% in 2025, mainly driven by retail loans. The quality of new loans has remained sound, supporting the decline in NPLs and enabling banks to maintain moderate lending rates. Nevertheless, financial intermediation remains shallow: net loans to businesses amount to less than 9% of GDP, while net hryvnia loans to households account for about 3% of GDP. Further implementation of the Lending Development Strategy and Mortgage Lending Strategy will be essential to deepening financial intermediation, while keeping credit risks contained and better targeting public support schemes at firms that need them most. The launch of the Local Development Finance Facility under the National Development Institution should help support reconstruction and recovery by turning local recovery projects into bankable investments and improving access to finance for municipalities, SMEs, and priority sectors.

Functioning of the labour market

Large-scale displacement, demographic losses, and military mobilisation have significantly contributed to labour shortages and rising real wages in 2025. Approximately 50% of businesses reported difficulties in recruiting, particularly in

manufacturing, construction, transport, energy, and healthcare, reflecting persistent skills mismatches and low labour mobility. Women remained disproportionately represented among unemployed people, partly reflecting mobilisation patterns. Young people and internally displaced persons continued to face challenges in integrating into the labour market. Ukraine continued expanding active labour market policies for displaced persons and veterans, including

retraining, employment support, and entrepreneurship programmes. The Population Employment Strategy for the period up to 2030 was adopted in January 2026. Ukraine also took steps to reduce undeclared work in the labour market by adopting a law on digital platforms in June 2026, which aims to bring more activity in the digital sector into the formal economy.

2.3.2. The capacity to cope with competitive pressure and market forces within the EU

Education and innovation

Ukraine continued efforts to improve the quality, accessibility and labour market relevance of education despite severe wartime disruptions. An action plan to implement the Strategy for the Development of Higher Education in Ukraine (2022-2032), was adopted in December 2025, aiming to strengthen institutional autonomy and align the sector more

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closely with European Higher Education Area principles. The New Ukrainian School reform continued, together with the roll-out of the Law on preschool education, supported by the adoption of the State Standard of Preschool Education in December 2025, which sets out mandatory learning outcomes and child competencies. The results of the latest PISA assessment (2026) were in line with the 2022 results, despite the combined impact of the COVID-19 pandemic and the war. Demographic decline and war-driven migration of teachers and students continued to weigh on human capital formation. A sizeable increase in salaries for teachers and academic staff in 2026 is expected to improve the profession’s attractiveness and status. A new Law on vocational education entered into force in September 2025, and dual education expanded to 163 VET institutions and over 16 500 students across 115 professions, particularly in construction, transport, energy, and manufacturing. Around 78% of VET graduates were employed in their acquired profession. Research and development expenditure remained below 0.4% of GDP, constraining innovation capacity despite the continued implementation of the Global Innovation Development Strategy to 2030. At the same time, the expansion of domestic defence production supported technological development and resulted in globally relevant products, particularly in unmanned systems and digital technologies.

Physical capital and quality of infrastructure

Ukraine continued to face severe infrastructure challenges due to repeated attacks on critical assets, particularly in the energy sector. Despite the restoration or commissioning of around 4 GW of generation capacity, the energy system remained under severe strain, as around half of total electricity generation capacity was destroyed during the 2025/2026 heating season. Available domestic capacity, at around 10 GW, remained well below peak demand of around 18 GW. Electricity imports helped narrow the gap but did not prevent significant shortages during peak periods, weighing on industrial activity, logistics, and business confidence. Reconstruction and repair efforts increasingly focused on decentralised electricity generation. Below-cost utility tariffs continue to limit SOE resources for reconstruction and repairs. Despite continued efforts to maintain export routes and connectivity, transport and logistics infrastructure also remained affected by war-related damage and security risks, accounting for 20.6% of Ukraine's total physical damage, most of it concentrated in the railway system. Economic losses were driven by disrupted access to Black Sea ports and the continued closure of airspace. Digital infrastructure remained comparatively resilient, including in rural areas. Ukraine made progress in reforming public investment management, with investment planning becoming more closely integrated into the budget cycle, with the Budget Declaration reflecting public investment projects in medium-term expenditure projections.

Sectoral and enterprise structure

The structure of the economy saw a continuous shift towards services. Agriculture remained below pre-war levels despite a gradual recovery, although agricultural products continued to account for most merchandise exports. Industry continued to face high logistics and energy costs, while recent developments pointed to gradual upgrading in parts of the industrial base, in particular through the expansion of defence-related manufacturing, engineering, and dual-use technologies. The service sector continued to expand its relative importance and accounted for around 70% of GDP, supported by digitalisation and wartime adaptation, with ICT and other knowledge-intensive activities increasing their contribution to exports and value added. Economic activity increasingly shifted towards western regions due to displacement and business relocation.

Economic integration with the EU and price competitiveness

Ukraine remained relatively open to trade despite of continued war-related disruptions. The trade-to-GDP ratio

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declined markedly, from 29.7% in 2024 to 25.3% in 2025, reflecting lower agricultural production, as well as the impact of attacks on enterprises, infrastructure, and energy facilities. The EU remained Ukraine’s largest trading partner, accounting for 55.1% of total foreign trade in goods and services, although its share declined slightly from 56.7% in 2024. Ukraine’s trade deficit with the EU widened, as imports from the EU increased, while nominal exports to the EU declined, broadly in line with the overall fall in exports in 2025. At the same time, integration into European value chains continued to strengthen, with exports of processing services to the EU increasing and accounting for close to 89% of Ukraine’s total exports of such services.

Price competitiveness remained under pressure. Although the hryvnia only weakened slightly against the US dollar in 2025, it depreciated more markedly against the euro and in nominal effective terms, reflecting global currency movements. This nominal depreciation provided some support to export price competitiveness. However, this nominal depreciation was insufficient to compensate for the unfavourable inflation differential, leaving the annual average real effective exchange rate stronger than in 2024. Some real depreciation towards the end of the year partly reversed this trend. Rising real wages driven by labour shortages added to cost pressures and reduced competitiveness.

2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL

Chapter 5 - Public procurement

EU rules ensure that the public procurement of goods, services and works in any Member State is transparent and open to all EU economic operators on the basis of non- discrimination and equal treatment.

Institutional set-up and legal alignment

The legal framework on public procurement is partially aligned with the EU acquis. In line with the Strategy for Reforming the Public Procurement System for 2024-2026, the adopted Public Procurement Law represents a significant improvement in alignment with the EU acquis. With its adoption, Ukraine has moved forward with its commitments under the Deep and Comprehensive Free Trade Agreement (DCFTA) in the area of public procurement, with the exception of the utilities sector, which remains not aligned. However, Ukraine continues to apply exceptions to its public procurement rules, including temporary direct contracting for the protection of critical infrastructure during martial law. Another point of concern is the use of pilot framework agreements for certain construction works without open tenders, limitations to monitoring, transparency of procedures and review mechanisms. In January 2026, the procurement procedure was amended to extend the obligation to disclose beneficial ownership information to all types of procurement.

The PPP and Concessions laws still contain gaps in alignment with the EU acquis. In particular, PPP award procedures are regulated by a separate by-law, the content of which appears to fall outside the applicable EU public procurement rules.

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In January 2026 the two central defence procurement bodies for non-military and military procurement were merged. The lack of legal clarity related to the distinction between conventional and defence procurement, was not resolved, primarily due to the lack of clear definitions. Decentralised defence procurement has allowed for faster delivery of military equipment, although with limited financial oversight. To mitigate risks, special training programmes were launched to educate procurement officers within military units.

Implementation and enforcement capacity

In 2025, contracts worth EUR 19.74 billion were concluded through public procurement (excluding defence and gas purchases), of which 72.3% were awarded -through competitive procedures. The value of contracts concluded by competitive procedures, compared to 2024 increased from EUR 13.51 billion to EUR 14.27 billion. However, 70.6% of the value of contracts under open tenders were assigned in procedures with a single bidder.

The government approved the roadmap and action plan to strengthen the State Audit Service (SAS) and its control mechanisms, defining strategic guidelines and stages for increasing the efficiency of state control over public procurement processes. The SAS continued to carry out monitoring of legal compliance of contract award and implementation, while only a minority of monitoring actions were triggered by automatic risk indicators. In 2025, the SAS identified violations in 63% of monitored procurement, yet the violations identified were challenged in court only in some cases, with a low success rate. In order to facilitate enforcement, the SAS improved procedures to access personal data of individuals committing violations.

The contracting authorities need to continue strengthening the capacity and integrity of management of public procurement processes across all institutions. Progress was made in updating the training offer for procurement managers end economic operators.

Regarding prevention of corruption, law enforcement agencies conducted investigations in several cases related to corruption in public procurement. The operation Midas uncovered alleged large-scale embezzlement in the procurement of a state energy company and high- level political influence in the award of defence contracts. The capacities of contracting authorities, as well as internal and external controls to prevent corruption and bid rigging remain weak, particularly at sub-national level and in state-owned enterprises. Integrity due diligence and exclusion criteria for bidders, alongside the monitoring and enforcement capacity, require further strengthening. The Public Procurement Strategy for 2027-2030 needs to address outstanding issues, ensuring complementarity with the strategic results on public procurement of the State Anti-Corruption Strategy 2026-2030.

Efficient remedy system

The legislation on review of public procurement is largely aligned. However, compliance issues remain, requiring addressing, in particular, time limits to bring review that should have a required length in all sectors and correct application of automatic suspension of public procurement procedure in case of review of award decisions. In 2025, the Antimonopoly Committee (AMCU) received 9 783 complaints, of which 66% were justified. In 2025, 172 decisions were appealed in court out of which 9 were confirmed. The remaining 163 decisions are still under consideration in the courts of the first, appellate and cassation instances.

Chapter 18 - Statistics

European statistics are developed, produced and disseminated by EU Member States, guided by the principles and criteria elaborated in the Regulation on European statistics, such as professional independence, impartiality, reliability, transparency and confidentiality. Common rules are provided for the methodology, production and dissemination of statistical information, which are further specified in sectoral legislation that constitute the EU acquis on statistics.

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On statistical infrastructure, Ukraine should amend the Law on official statistics to ensure the full professional independence of the State Statistics Service of Ukraine (SSSU) and its role in defining the state policy in statistics, and to strengthen the institutional status of the SSSU and its powers regarding coordination of the stakeholders in the national statistical system. Ukraine needs to ensure that the SSSU receives the necessary financial and human resources to fulfil its mandate to produce official statistics and to comply with the EU acquis in statistics. Some progress was achieved in statistical reporting with the legal entities resuming statistical and financial reporting to state statistical bodies in July 2025.

On classifications, Ukraineadopted NACE 2.1-UA (entering into force in 2027), a new NUTS-UA regional classification (entering into force in 2027), and a new version of the nomenclature of industrial products, harmonised with the PRODCOM. On registers, no progress was achieved.

The compilation of macroeconomic statistics, including government finance statistics remains seriously disrupted due to the martial law and no substantial progress was achieved in comparison with the previous year. The Commission encourages Ukraine to conclude a memorandum of understanding between the SSSU, the National Bank and the Ministry of Finance and to set up a working group in macroeconomic statistics.

On social statistics, the SSSU resumed household surveys. Measures were taken to prepare the 2026 household budget survey and the labour force survey. The main interviews for the 2026 household budget survey and the 2025 European health interview survey began in 22 regions. Information on the socio-demographic characteristics of households based on the results of the main interviews are expected to be released in August 2026. The labour force survey began in January 2026, while in March 2026, the survey on income and living conditions (EU-SILC) was introduced in Ukraine for the first time, continuing through July 2026.

On sectoral statistics, the transmission of some datasets to Eurostat has increased in energy, price, transport (for each, several datasets were transmitted), business (datasets on short-term business statistics, on business registrations and bankruptcies by economic activity on a quarterly basis were transmitted) and agriculture statistics (the methodologies on integrated farm statistics and agricultural machinery availability were amended, progress on animal production statistics was achieved). Substantial progress is still expected in the areas of business, trade, science, technology, innovation, environment and tourism statistics.

Chapter 32 - Financial control

The EU promotes the reform of national governance systems to improve managerial accountability, sound financial management of income and expenditure, and external audit of public funds. The financial control rules further protect the EU’s financial interests against fraud in the management of EU funds and the euro against counterfeiting.

Public internal financial control (PIFC)

The strategic framework for PIFC is in place as part of the newly adopted Public Finance Management Reform Strategy for 2026-2030. Continuous progress in strengthening the legal and methodological PIFC framework was demonstrated. Nevertheless, the operational effectiveness of the PIFC system remains limited due to fragmented implementation and varying institutional capacities, and the need for stronger coordination. Further strengthening of the central harmonisation unit’s capacity remains important to support the implementation of the PIFC system.

Efforts continued in supporting the implementation of the internal control framework, notably through the launch of an institutional pilot under the Ministry of Justice and targeted training.

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Implementation of managerial accountability remains uneven, particularly regarding managerial ownership of internal control and risk management practices.

On internal audit, initial steps have been taken to align the internal audit framework with the Global Internal Audit Standards, notably through the preparation of revised national internal audit standards. The establishment of audit committees continued expanding across the public sector. As of January 2026, 42 audit committees have been newly established in key spending units. Further efforts are needed to strengthen the quality, independence, and strategic role of internal audit, and to ensure the effective functioning of audit committees.

External audit

The Accounting Chamber of Ukraine (ACU) continued implementing the existing reform framework, which also plans for the consolidation of its institutional and financial independence. The appointment of six members of the ACU Board, still pending, would strengthen its governance capacity.

On administrative capacity, timely recruitment and filling of vacancies would be better ensured by more solid financial independence. All audits were conducted using the newly approved ISSAI-based audit methodologies, while strengthening their implementation especially through quality management and continuous professional development. The audit coverage of the consolidated financial statement is gradually expanding, with the ACU applying the financial audit methodology to the statements of key budget holders, local government entities, and externally financed programmes.

Parliamentary scrutiny is being gradually reinforced thanks to a better cooperation between the ACU and the relevant committees within the Verkhovna Rada, which starts using ACU’s report more systematically in discussions and for oversight purposes. There remains scope for further progress on these aspects and on strengthening the follow-up mechanisms.

Protection of the EU’s financial interests

The national legislation still needs to be fully aligned with the PIF Directive. A national anti- fraud strategy to protect the EU’s financial interests was adopted in July 2026.

The State Audit Service’s mandate and capacity need to be further consolidated to perform its role as the anti-fraud coordination service (AFCOS). At the moment, it can only provide information on irregularities within the scope of the Ukraine Facility. A corresponding AFCOS network comprising 13 national authorities continued supporting the AFCOS.

A track record in the reporting of irregularities and cooperation with the European Anti- Fraud Office (OLAF) on investigations should continue to be developed. The AFCOS started using the Irregularity Management System in 2025, with 32 irregularities under the Ukraine Facility by the end of the year, of which 23 classified as suspected fraud and one as established fraud.

Protection of the euro against counterfeiting

The ratification of the 1929 Geneva Convention for the suppression of counterfeiting currency would be beneficial to support international cooperation in the area.

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION

Ukraine is an active participant in several regional formats, including the Eastern Partnership, the Central European Initiative, Black Sea Economic Cooperation, the Organisation for Democracy and Economic Development and the Regional Cooperation Council. Moreover, Ukraine has invested diplomatic capital in improving ties with its neighbours, especially EU Member States. In 2026, Ukraine hosted a successful Ukraine- Southeast Europe Summit in Kyiv.

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The relationship between Ukraine and Hungary was marked by a certain level of tension, reflecting differing perspectives on minority rights, energy cooperation and broader geopolitical alignment. Following the Hungarian parliamentary elections in April 2026, bilateral relations improved, with potential for more forward-looking engagement.

Poland is one of Ukraine’s closest strategic partners in the context of Russia’s war of aggression. Poland provides vital political, humanitarian, economic, technical and defence assistance and hosts the largest number of Ukrainians fleeing Russian military aggression. It also provides logistical hubs to deliver EU humanitarian and civil protection support to Ukraine. Despite disputes over historical issues, both countries have demonstrated a strong political commitment to finding solutions to those longstanding problems. Ukraine and Romania continue to cooperate closely and have recently strengthened bilateral political dialogue by signing the Strategic Partnership Agreement in March 2026. Since early 2022, Romania has provided strong political support to Ukraine, including by facilitating the export of Ukrainian food products through EU solidarity lanes and hosting logistical hubs for the delivery of EU humanitarian and civil protection support.

Ukraine’s relations with Slovakia have been politically strained over military support and energy issues but practical cooperation continued. Slovakia hosts a network of logistical hubs to channel EU in-kind assistance to Ukraine. Slovakia also hosts a significant number of Ukrainians fleeing Russian military aggression under temporary protection arrangements, with one of the highest numbers per capita.

Relations with Bulgaria have been bolstered by Bulgarian political, financial and humanitarian aid for Ukraine and by growing economic ties. Ukraine and Bulgaria share a robust, multifaceted strategic partnership, further strengthened by a Security Cooperation Agreement signed in March 2026.

Ukraine maintains longstanding and close ties with neighbouring Moldova. Bilateral political dialogue has been strengthened at all levels, reflecting Moldova’s strong support for Ukraine in the context of Russia’s war of aggression. The two countries also discuss regional and security issues, the situation in the Transnistrian region and the management of the Nistru River’s water resources, which remains a challenging topic.

Ukraine and Georgia continue to implement a strategic partnership that began in 2017. While Georgia supports Ukraine’s territorial integrity and sovereignty, Ukraine has expressed concerns that Georgia has not aligned itself with EU sanctions against Russia and does not cooperate on military-technical matters. The de facto halt of Georgia’s accession process has led to further political dissonance between the two countries. Despite political relations cooling, some diplomatic channels have reopened.

Türkiye is a partner of strategic significance for Ukraine, with major economic and people- to-people ties, reflected in a bilateral visa-free regime and a free trade agreement (not yet ratified). Bilateral relations have been bolstered since the beginning of Russia’s full-scale war by Türkiye’s technical, humanitarian and military support for Ukraine, and by its co- sponsoring of UN resolutions supporting Ukraine’s territorial integrity and sovereignty. Türkiye has consistently supported Ukraine’s territorial integrity and sovereignty and has continued to highlight its role as facilitator and potential mediator. This was shown when Türkiye facilitated grain export and prisoners’ exchanges and when it hosted three rounds of direct talks between Russia and Ukraine in Istanbul in 2025. Türkiye has refrained from aligning with the EU’s restrictive measures against Russia but continues to collaborate constructively with the EU to identify solutions to sanctions circumvention.

Relations with Albania and Bosnia and Herzegovina are based on their support for Ukraine’s territorial integrity and sovereignty and its condemnation of Russia’s war of aggression. The ties between Ukraine and North Macedonia are strong and deepening through political dialogue, diplomatic support and military assistance in the face of the war.

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Ukraine-Montenegro relations remain strong, bolstered by Montenegro’s continued support in UN forums and on sanctions, trade and technical and military assistance.

Ukraine-Serbia relations have improved, although Serbia has not joined the sanctions against the Russian Federation. High-level contacts between both countries have increased since February 2024, including the first visit to Serbia by President Zelenskyy in August 2026. Serbia is Ukraine’s biggest trading partner in the Western Balkans, and it has also provided by far the most financial and humanitarian assistance to Ukraine of any country in the region.

Ukraine has not recognised the independence of Kosovo* but has indicated continued support for EU-facilitated dialogue between Belgrade and Pristina. On a voluntary basis, Kosovo has aligned with EU restrictive measures relating to Russia’s war of aggression against Ukraine.

4. SECURITY, DEFENCE AND RESILIENCE

While continuing to receive the EU’s political, financial, economic and military support, Ukraine is also becoming a substantial contributor to European security, resilience and defence readiness.

The 2024 EU-Ukraine Joint Security Commitments continued to guide cooperation on security, resilience and defence, while complementing bilateral security agreements between EU Member States and Ukraine.

The EU and its Member States increasingly benefitted from Ukraine’s advanced defence and technology innovation, industrial capabilities, cyber expertise and unique operational experience, including in countering hybrid threats. Ukraine also took steps towards closer integration into the European Defence Technological and Industrial Base (EDTIB), contributing to the EU’s long-term security, defence readiness and competitiveness.

The EU’s military support under the Ukraine Support Loan, the European Peace Facility, windfall profits generated by the immobilised Russian assets, and other EU support tools substantially strengthen the security and resilience of both Ukraine and the EU, fostering the transformation and integration of our respective defence industries.

Ukraine also benefits from the support provided by the EU Advisory Mission (EUAM) and the EU Military Assistance Mission (EUMAM), which reinforce Ukraine’s security and resilience while advancing closer cooperation and Ukraine’s integration into the EU’s common foreign, security and defence policy.

Democratic resilience

Despite Russia’s full-scale war of aggression and the constraints of martial law, Ukraine maintained constitutional continuity and functioning democratic institutions, supported by an active civil society. For Ukrainians, the war is not only a fight for territorial integrity and independence, but also a defence of democratic values, civic freedoms and the sovereign right to determine the country’s European future.

Countering hybrid threats in Ukraine extends far beyond military defence. It encompasses resilience against cyberattacks and foreign information manipulation and interference (FIMI), including disinformation, sabotage, political interference and attacks on critical infrastructure, requiring coordinated action across government, civil society and the private sector. Ukraine’s experience in countering hybrid threats offer valuable lessons for the EU’s

 This designation is without prejudice to positions on status and is line with UNSCR 1244/1999 and the ICJ

Opinion on the Kosovo declaration of independence.

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security, preparedness and societal resilience. Ukraine’s operational experience in civil protection and crisis response can strengthen the EU’s preparedness and resilience, notably through the Union Civil Protection Mechanism (UCPM).

Economic security and resilience

Ukraine continued to strengthen the resilience of its critical infrastructure and energy systems even under intensified Russian attacks. Further integration steps of its electricity system with the European market contributed to both Ukraine’s resilience and wider European energy security.

Ukraine’s strategic importance for the resilience of European supply chains increased. It continued to prioritise the development of critical raw materials. In May 2026, EU and Ukraine endorsed the updated 2026-2027 Roadmap under the EU-Ukraine Strategic Partnership on Critical Raw Materials, and, in June 2026, Ukraine approved a 20-year strategy to develop critical minerals and value-added industries. Developing Ukraine’s critical material sector and ensuring relevant regulatory and investment framework, could diversify European supply chains and reduce strategic dependencies, including in defence, energy and advanced technologies.

Ukraine further developed capabilities relevant to the EU’s economic security agenda. The country continued to strengthen cyber defence capacities and digital governance systems in response to persistent cyber threats. Ukraine’s experience in protecting critical systems against cyberattacks and maintaining the continuity of essential services in wartime, provides a valuable expertise for the EU.

Ukraine continued to expand its capabilities in dual-use and emerging technologies, including autonomous systems, artificial intelligence and defence-related innovation. These capabilities are increasingly reflected in the development and deployment of unmanned systems, including unmanned ground vehicles (UGVs) and maritime drones. Beyond their military applications, such technologies have significant dual-use potential, including for security and emergency services, firefighting, medical and casualty evacuation, and forestry, environmental and border monitoring.

Ukraine is an important contributor to European food security and strategic resilience. Ukraine is a key supplier of feed such as cereals, oilseeds and vegetable oils and has the potential to strengthen the EU’s plant protein autonomy. However, to work closer together, Ukraine will need to align with EU production, food safety and sustainability standards. This will help Ukraine’s deeper integration into European agri-food value chains. Nonetheless, Russia’s increasing attacks on Ukraine grain and port infrastructure are causing significant damage to Ukraine’s agricultural production, storage, distribution and exports, disrupting grain and vegetable oil supply chains, and increasing global food insecurity.

Ukraine should continue efforts to strengthen the resilience of critical infrastructure, gradually meet EU production standards in agriculture, deepen energy market integration with the EU and enhance cyber resilience.

Defence capacity building and defence industrial dimension

Ukraine expanded its defence production and technological innovation, drawing on operational experience to accelerate innovation, particularly in drone and counter drone systems.

Ukraine also strengthened the governance framework for defence exports and committed to a partial lifting of the wartime export ban. As a result, the government issued the first wartime export licences. Authorities also boosted coordination mechanisms aiming at facilitating internationalisation of Ukraine’s defence industry within the framework of Build with Ukraine.

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To advance integration into the European Defence Technological and Industrial Base (EDTIB), Ukraine announced in February 2026 the roll-out of a network of defence technology export hubs across Europe aimed at supporting exports, industrial partnerships and co-production arrangements with European partners. Ukraine and the European Commission signed in July 2026 a Letter of Intent committing to develop a Strategic Defence Industrial Partnership and establish, together with EU Member States, an EU-Ukraine Defence Industrial Pact.

Meanwhile, Ukraine is increasingly integrated into and participating in flagship EU programmes and associated defence innovation ecosystems. Ukrainian entities’ participation in activities supported under the European Defence Fund (EDF), is expected to contribute to innovation, capability development and Ukraine’s integration into the EDTIB. The launch of BraveTech EU linked the EU Defence Innovation Scheme (EUDIS), the EDF, the European Defence Agency and Ukraine’s Brave1 defence innovation platform, creating new opportunities for joint technology development, testing, investment and industrial cooperation.

Cooperation in the field of unmanned systems also intensified. In July 2026, the EU- Ukraine Drone Alliance is bringing together Ukrainian operational experience and rapid innovation cycles with European industrial capacity. The Alliance aims to supporting joint ventures and accelerating the development and production of next-generation drone and counter-drone systems.

The Ukraine Support Loan (UASL), covering 2026-27, provides a major financing framework to support Ukraine’s defence needs and the integration of the Ukrainian and European defence industrial bases. The implementation of the Security Action for Europe (SAFE) instrument and the European Defence Industry Programme (EDIP) and its Ukraine Support Instrument (USI), create additional opportunities for industrial cooperation, joint procurement, co-production, and gradual integration.

Despite growing cooperation, joint production and industrial integration remain constrained by defence export restrictions, intellectual property and technology transfer issues, limited financing, weak supply chain integration and fragmented regulatory and procurement frameworks in Ukraine. Further alignment of technical standards and more transparent procurement practices would facilitate industrial integration, partnerships and co-production.

Civil protection and disaster resilience

Despite Russia's full-scale war of aggression, Ukraine continues improving its resilience through robust civil protection and disaster risk management. Ukraine is an active participant in the UCPM and has proven that its national and local civil protection systems can deal effectively with human-induced crises, while itis improving its capacity to deal with natural hazards.

5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP

CLUSTER 2: INTERNAL MARKET

This cluster covers: the free movement of goods (Chapter 1); freedom of movement for workers (Chapter 2); right of establishment and freedom to provide services (Chapter 3); free movement of capital (Chapter 4); company law (Chapter 6); intellectual property law (Chapter 7); competition policy (Chapter 8); financial services (Chapter 9); and consumer and health protection (Chapter 28).

Chapter 1 - Free movement of goods

The free movement of goods ensures that many products can be traded freely across the EU based on common rules and procedures. Where products are governed by national

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rules, the principle of the free movement of goods prevents these rules from creating unjustified barriers to trade.

General principles

The Deep and Comprehensive Free Trade Area (DCFTA) provides for the possibility to conclude an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) once Ukraine fully aligns and implements the relevant EU harmonised acquis, and selected product legislation. The preparations for negotiating an ACAA made significant progress in the identified actions, following the adoption of the legislation aiming to align with the EU acquis on accreditation and conformity assessment, and market surveillance, as well as technical regulation on machinery.

Non-harmonised areas

Ukraine is not aligned with all the general principles governing the free movement of goods. It has not started activities for screening national technical regulations for compliance with Articles 34-36 of the TFEU and relevant CJEU case law.

Harmonised area: quality infrastructure

Ukraine’s legislation is fully aligned with the EU acquis on standardisation. The national standards body needs to replace staffing losses and to apply to becoming a full member to the European Committee for Standardisation (CEN), the European Committee for Electrotechnical Standardisation (CENELEC), the European Telecommunications Standards Institute (ETSI) as well as European Association of National Metrology Institutes (EURAMET). Ukraine is aligned to the EU acquis on accreditation and on conformity assessment and is partly aligned on metrology. Ukraine has currently 77 conformity assessment bodies, an increase of 15 since 2025, covering over 20 sectors.

Ukraine is largely aligned with the EU acquis on market surveillance; however Ukrainian market surveillance bodies continue to lack funding and face serious staffing issues. During 2025, the market surveillance authorities conducted 4 130 scheduled and 2 792 unscheduled inspections resulting in 25 556 corrective measures.

Harmonised area: sectoral legislation

During the reporting period, Ukraine adopted legislation intended to be fully aligned with the EU ‘new and global approach’ product acquis on machinery.

No progress was made on alignment with EU ‘old approach’ product acquis.

No developments were recorded on procedural measures.

On anti-corruption, insufficient risk mitigation and effective penalties remain a serious challenge regarding market surveillance, and no progress was made in the reporting period.

Chapter 2 - Freedom of movement for workers

Citizens of one Member State have the right to work in another Member State and must be given the same working and social conditions as other workers.

On access to the labour market, no significant legislative developments took place in the reporting period. Ukraine’s legislation is not aligned with the EU acquis on access to the labour market. EU citizens also do not have access to public posts.

In December 2025, Ukraine adopted a new Employment Strategy, which includes preparatory measures for Ukraine’s future participation in the European Network of Employment Services (EURES) and for the implementation of the acquis on free movement of workers, with the objective of expanding worker mobility and strengthening vacancy and working conditions information exchange.

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On the coordination of social security systems, there were no developments on establishing an electronic system for exchange of social security data. No new agreement on social security coordination was signed with Member States during the reporting period

With regards to the European Health Insurance Card, a national health insurance card has yet to be implemented in Ukraine.

Chapter 3 - Right of establishment and freedom to provide services

EU natural and legal persons have the right to establish themselves in any Member State and to provide cross-border services. For certain regulated professions, there are rules on mutual recognition of qualifications. EU rules on postal services focus on improving the quality of universal service, gradual market opening to competition, and the establishment of an independent regulator.

On the right of establishment and freedom to provide cross-border services, Ukraine should make progressive steps to align with the EU service Directive.

In the area of postal services, Ukraine is partially aligned with the Postal Services Directive and Regulation on cross-border parcel delivery services. Opening of the postal market to full competition is to be completed with the state-owned postal operator retaining a monopoly on delivery of letters and postcards. In February 2026, Ukraine adopted a government resolution on quality standards for the provision of universal postal service aligning with the Postal Services Directive. A draft Law amending the Law on Postal Services is under preparation aiming at aligning Ukrainian legislation with the Regulation on cross-border parcel delivery services, in line with commitments taken by Ukraine under the DCFTA on postal and courier services. In May 2026, Ukraine demonstrated progress in aligning with the acquis on mutual recognition of professional qualifications by developing a test version of the Unified Register of Qualifications. The register enables Ukraine to formally designate regulated professions and facilitates access to information, thereby demonstrating progress towards alignment with Article 57 of the Directive on the recognition of professional qualifications, which governs central online access to information.

Chapter 4 - Free movement of capital

In the EU, capital and investments must be able to move without restrictions, with common rules for cross-border payments. Banks and other economic operators apply certain rules to support the fight against money laundering and terrorist financing.

On capital movements, the National Bank (NBU) continued implementing its strategy to gradually ease the war-related foreign exchange restrictions and transition towards greater exchange rate flexibility. In particular, the NBU introduced limited relaxation of foreign exchange restrictions aimed at supporting the defence industry, facilitating the restructuring of outstanding external loans, and easing exports of agricultural machinery. The NBU also expanded the list of cases where banks may execute certain foreign exchange transactions abroad, including for specific trade-related and public payment purposes. These measures represent continued gradual liberalisation, although significant restrictions introduced under martial law remain in place. As soon as conditions allow, Ukraine should lift the restrictions enacted following martial law and continue the liberalisation of pre-existing restrictions to foreign exchange transactions. In addition, Ukraine should remove the restrictions remaining in national legislation on the acquisition of agricultural land by EU nationals, which are contrary to the EU acquis.

On payments system, work continued with the aim to further align with the Payment Service Directive II. Further work on the legislative framework, including the preparation of amendments and implementing measures by the relevant authorities, is ongoing. Ukraine continued modernising its payment infrastructure, including through the introduction of new functionalities in the System of Electronic Payments based on the ISO 2022 standard, as

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well as further steps towards the development of open banking and instant payment services.

On the fight against money laundering and terrorism financing (AML/CFT), in December 2025, the government resubmitted to Parliament a comprehensive legislative package aiming to align with the AML/CFT EU acquis,including the establishment of the register of accounts and individual bank safes of natural persons and the register of beneficial owners of trusts and similar legal arrangements. The delay in adopting this legislation continues to hinder Ukraine’s efforts to advance alignment with the EU AML/CFT framework. In June 2026, the Parliament adopted legislation limiting the financial monitoring of former politically exposed persons (PEPs). The provisions were amended in October before their entry into force. Ukraine should further align with the EU acquis on politically exposed persons aspects. Further progress is needed in the regulation and supervision of crypto-assets and their service providers. The draft law on virtual assets aiming to align with the Transfer of Funds Regulation was approved by Parliament in first reading in September 2025 and is still pending adoption.

The 4th AML/CFT National Risk Assessment has been adopted in August 2026. The government should now elaborate a comprehensive national plan addressing the identified risks.

In 2025, the Financial Intelligence Unit (FIU) received almost two million reports on financial transactions, an increase of 11% compared to 2024. Banks remained the predominant source of reports, while reporting by the non-financial sector continues to be very limited and requires further strengthening. In 2025, the FIU received 11 523 beneficial ownership discrepancy reports, but the capacity of the Ministry of Justice to process them needs strengthening.

The functioning of the FIU continues to face resource constraints, while its strategic documents have expired and have yet to be renewed. Ukraine should strengthen its operational independence and administrative capacity, including through the introduction of periodic independent effectiveness audits of the AML/CFT system and a transparent competitive selection procedure for the head of the FIU, alongside a time-bound mandate.

Chapter 6 - Company law

The EU has common rules on the formation, registration and disclosure requirements of a company, with complementary rules for accounting and financial reporting, and statutory audit.

In the area of company law and corporate governance, Ukraine modernised the Unified State Register, including through the introduction of functionality for a European Unique Identifier (EUID), technical improvements facilitating the registration, modification and termination of branches and representative offices of foreign legal entities, and the resumption of publication of business-register data in open data format, subject to some restrictions under martial law. Amendments to the Civil Code and other legislative acts regarding the introduction of the procedure for divisions by acquisition were drawn up in 2026. Partial alignment with the EU acquis on fully online registration and disclosure of company information has been carried out. Ukrainian legislation shall continue aligning with the EU acquis regarding the disqualification of directors, particularly for limited liability companies. The National Securities and Stock Market Commission (NSSMC) adopted a resolution providing further clarity on the disclosure framework applicable to issuers of securities, collateral providers, and corporate rights advisers during martial law, including revised deadlines for outstanding annual and interim reporting obligations. The NSSMC also initiated work on updating the national Corporate Governance Code. Ukraine should ensure that the revised code and the monitoring of its implementation closely align with relevant EU acquis and retains strong anti-corruption safeguards. Ukraine should also complete alignment with the Directive 2024/1760 on corporate sustainability due diligence (CSDDD),

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as amended by the Directive (EU) 2026/470 (Omnibus I). The amendments simplified some of the obligations and postponed the transposition deadline to July 2028 and the application deadline to July 2029.

In the area of company reporting and statutory audit, Ukraine prepared draft legislation to amend the Law on Accounting and Financial Reporting, introducing sustainability reporting requirements. Ukraine also prepared draft legislation amending the Law on Audit of Financial Statements and Auditing to introduce requirements related to the assurance of sustainability reporting. Ukraine should adopt these pending pieces of legislation.

Chapter 7 - Intellectual property law

The EU has to a large extent harmonised rules for the legal protection and enforcement of copyright and related rights, as well as of industrial property rights, including trademarks, designs, patents and related supplementary protection certificates (SPCs), geographical indications (GIs), including craft and industrial GIs.

On copyright and related rights, Ukraine continued its work to align its legislation with the EU acquis. Concerns remain notably on collective rights management, in particular, with regard to the accreditation of collective management organisations during martial law, discrepancies between collected and distributed royalties, particularly for EU rightsholders, and transparency of the system as a core requirement of the EU acquis.

On industrial property rights, in October 2025, guidelines on granting legal protection to a trademark that contains or derives from a geographical indication were approved. Further steps are required towards alignment with Regulation 2023/2411 to extend the protection of GIs to craft and industrial products. Ukraine started preparations for the accession to the Geneva Act of the Lisbon Agreement on appellations of origin and geographical indications, including the designation of the competent authority responsible for its application.

On the enforcement of intellectual property rights, Ukraine drafted an IPR Strategy until 2030. The Ukrainian National Office for Intellectual Property and Innovations (UANIPIO) published its consolidated 2025 data on enforcement in July 2026, pointing to a downward trend in the total number of court cases and a gradual increase in the effectiveness of the work of law enforcement agencies (customs, police, Economic Security Bureau) as well as a substantial rise in the UANIPIO’s appeals chamber’s activities. Implementing provisions for the IP-related articles of the new Customs Code, such as simplified procedure to confirm the infringement of IP rights by the rightsholder at the border, require enactment. The growing availability of counterfeit products, including plant varieties, should be addressed, in particular through enhanced interinstitutional cooperation. Specialised trainings were organised for judges, police officers and investigators of the Economic Security Bureau. These trainings should continue and include prosecutors.

On the institutional framework, UANIPIO maintained close collaboration with the European Union Intellectual Property Office (EUIPO), in particular through the EU4IP project. Ukraine advanced its integration with tools and common practices of the European Union Intellectual Property Network. The integration of data on national designs (from UANIPIO Special Information System API) into the EUIPO was completed in July.

Chapter 8 - Competition policy

EU rules protect free competition. They include antitrust rules against restrictive agreements between companies and abuse of dominant position and also include rules on concentrations between companies which would significantly impede effective competition. EU rules also set out a system of State aid control. Governments are only allowed to grant State aid if restrictive conditions are met, with a view to preventing distortion of competition.

Antitrust and mergers

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On the legislative framework, some provisions of the Law on the protection of economic competition and the implementing legislation still need to be aligned with the EU acquis. The Antimonopoly Committee (AMCU) adopted a new Methodology for defining product markets and dominant positions.

On implementation, in the area of antitrust and mergers, AMCU continued adopting decisions in cases for anticompetitive concerted actions, abuse of dominant position and mergers. The amounts of fines imposed by the AMCU as a conclusion to these cases was UAH 773.7 million. AMCU further applied leniency mechanism in three cases, resulting in decisions on full exemption of liability, and did not carry any dawn raid. The AMCU’s enforcement record could be further improved.

State aid

On the legislative framework, draft laws aiming at further aligning the State aid framework with the EU acquis were not adopted yet, including on lifting the suspension of the application of State aid control by the Antimonopoly Committee, and on the separation of accounts between PSO and non-PSO activities in key state-owned enterprises. Ukraine approved further implementing provisions on criteria for assessing the compatibility of State aid to undertakings, namely in the area of transport services and in the area of scientific research, technical development and innovation.

On implementation, in the area of State aid control remains suspended under the martial law, and there is no obligation to notify to AMCU new or modified State aid measures. However, the inventory of state aid measures has been further updated by AMCU.

Chapter 9 - Financial services

EU rules aim at ensuring fair competition among, and the stability of, financial institutions, namely banking, insurance, supplementary pensions, investment services and securities markets. They include rules on authorisation, operation and supervision of these institutions.

On banking and financial conglomerates, in December 2025, the National Bank of Ukraine (NBU) published the results of the 2025 resilience assessment of the banking sector. The NBU reported that the implementation of capitalisation and risk profile strengthening programmes for such banks are underway.

The NBU has further advanced alignment of prudential requirements with the Capital Requirements Regulation/Capital Requirements Directive framework, including on significant exposures, internal audit, risk management, and prudential disclosures. The NBU also reintroduced requirements for banks to form capital buffers starting from 1 January 2027, which further strengthens the resilience of the banking sector.

Legislation on covered bonds was also adopted, aiming to align Ukraine’s legal framework with the Covered Bond Directive.

Progress was made in establishing a framework for non-performing loans (NPL) resolution through the adoption of legislation simplifying debt enforcement procedures.

On bank resolution and crisis management, preparatory work for future alignment with the Bank Recovery and Resolution Directive (BRRD) advanced through EU-funded technical assistance. The DGF applied the bridge bank resolution tool, increasing the operational capacity of resolution mechanisms. The resolution framework remains to be further developed, notably through alignment with BRRD and requirements on deposit guarantee schemes.

On insurance and occupational pensions, the NBU continued strengthening the supervisory and regulatory framework for non-bank financial institutions, including through actions aiming at further alignment with Solvency II principles and the introduction of risk- based supervisory approaches. The NBU also refined its regulatory framework for off-site

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supervision, temporary administration, and detection of unlicensed activities. However, further efforts are needed to align with the EU acquis and to strengthen supervisory capacity.

On financial market infrastructure, the National Securities and Stock Market Commission (NSSMC) started preparatory work for a new Law on Financial Market Infrastructure, defining the legal and institutional framework for trading, clearing, settlement and depository systems. The NSSMC adopted a resolution to improve settlement arrangements through regulated proprietary securities accounts for clearing institutions.

On the securities markets and investment services, as of 1 January 2026, amendments to the Law on State Regulation of Capital Markets and Organised Commodity Markets entered into force, strengthening guarantees of NSSMC independence, clarifying appointment and dismissal procedures, enhancing investigative powers, and updating the framework for market abuse and insider information disclosure.Further improvements are needed to strengthenappointment procedures for NSSMC Commissioners, including through greater involvement of independent members in nomination committees. The NSSMC approved a regulatory alignment roadmap on 23 September 2025, covering priority areas including investment services, market abuse, derivatives, and collective investment schemes. The Law on Credit Rating Agencies entered into force on 1 January 2026. In July 2026, NSSMC became a full signatory of the International Organisation of Securities Commissions (IOSCO) Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information.

Legislation on securitisation was also adopted, aiming to align Ukraine’s legal framework with the Securitisation Regulation.

On sustainable and digital finance, in February 2026, the NBU issued recommendations to banks on corporate governance practices aimed at integrating sustainability, environmental, social, and governance considerations. In March 2026, the NBU published an ESG glossary for the financial sector. A draft law aiming to align with the Market in Crypto- Assets Regulation (MiCA) remains to be adopted. On digital operational resilience, a regulation on the implementation of measures to ensure information security and cybersecurity by financial service providers was adopted by the NBU, laying the foundation for alignment with the EU Regulation on digital operational resilience for the financial sector (DORA). Rules on critical information infrastructure within the financial sector were also adopted by the NBU. Gaps remain regarding cross-sectoral testing, third-party ICT risk oversight and harmonised incident reporting.

Chapter 28 - Consumer and health protection

EU rules protect consumers’ economic interests and in relation to product safety, dangerous imitations and liability for defective product. The EU also ensures high common standards for tobacco control, blood, tissues, cells and organs, and medicines for human and veterinary use. The EU also has rules for upholding patients’ rights in cross-border healthcare, and in preparing for and responding to cross-border health threats including communicable diseases.

Consumer protection

On product safety-related issues, the Law on market surveillance and control of non-food products was adopted on 8 April 2026. The adoption of legislation aligned with the general product safety regulation is needed. Ukraine continued working towards gaining access to the European rapid alert system for dangerous consumer products (Safety Gate). On non- safety-related issues, there was no progress.

Public health

On horizontal aspects, progress continued in the health financingreform, including the programme of medical guarantees, increasing funding towards universal coverage and prioritising vulnerable population groups. Health governance needs strengthening. In 2025,

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the approval of a strategy for healthcare system development until 2030 and relative action plan marked a step forward, but their implementation requires sustained political commitment and adequate resourcing.

On e-Health, Ukraine is at an early stage in developing a Health Information System strategy, with fragmented systems persisting, and alignment with the European Health Data Space remains constrained. The Public Health Information platform has a legal basis.

On tobacco control, Ukrainelaunched the ‘eTobacco’ electronic reporting system and took measures to address illicit trade, but gaps remain in supply chain control, due diligence obligations, enforcement capacity, and international cooperation mechanisms.

On communicable diseases, Ukraine strengthened cross-border health threats and public health emergency preparedness. Access to HIV, hepatitis, and tuberculosis prevention, testing, and treatment for people who use drugs is uneven and often inadequate. Immunisation now includes a vaccine against human papillomavirus. Ukraine has implemented a strategy and action plan to combat antimicrobial resistance.

On tissues, cells, and organs, there was no progress on alignment with the EU acquis. On patients’ rights in cross-border healthcare, Ukraine should adopt legislation aligned with the EU acquis.

On veterinary medicinal products Ukraine adopted the Law on veterinary medicine and animal welfare, which has not been sent to the Commission for assessment of its alignment yet. Its implementation remains at an early stage, and most secondary legislation is lacking. This includes key elements such as good manufacturing practices’ requirements for veterinary medicinal products, for which the current transition period in the above-mentioned law ends by 1st July 2027. On medicines for human use, Ukraine’s Law on medicinal products partially aligns with the main provisions of the EU acquis but most secondary legislation is lacking, and additional administrative and enforcement capacity need to be put in place before the law’s entry into force in 2027. Ukraine introduced measures to improve access to medicines and supply chains and established general requirements for planning, organisation, conduct and documentation of the results of clinical trials. On 4thJune 2026, Ukraine approved a resolution establishing the Ukrainian Pharmaceutical Agency, which will begin its operations on 1st January 2027. The selection process of its head is ongoing. Ukraine should ensure that the Agency has the necessary human and financial resources and operates effectively and according to integrity standards.

Ukraine has made significant progress on alignment with the EU acquis on health technology assessment.

On cosmetic products, Ukraine has achieved a high level of alignment with the EU acquis. On medical devices, there was no progress on alignment with the EU acquis.

On mental health, the National Commission on Mental Health was established. The Commission encourages Ukraine to use as reference the Commission Communication on a comprehensive approach to mental health (COM(2023) 298) adopted on 7 June 2023.

Ukraine introduced a national health screening programme for individuals aged 40 years and older, aimed at the early detection of non-communicable diseases, with a focus on cardiovascular diseases. The Commission encourages Ukraine to use as reference the Commission Communication on an EU cardiovascular health plan: the Safe Hearts Plan (COM(2025) 1024) adopted on 16 December 2025. On cancer, Ukraine approved the 2026- 2028 Action Plan for the National Cancer Control Strategy until 2030. Cancer screenings exist for cervical, breast, and colorectal cancers.

On nutrition and healthy lifestyles, the 2026-2028 Action Plan sets practical measures ranging from prevention and awareness to early identification and treatment of alcohol dependence.

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On health inequalities, all population groups are entitled to the same service packages under the programme of medical guarantees. In rural, hard to reach, and heavily war affected areas, however, inequalities persist in both accessibility and quality of health services. The most disadvantaged populations (including Roma, LGBTIQ persons, prisoners, and adult drug users) sometimes experience discrimination or stigmatisation but the situation is gradually improving. At the same time, vertical equity policies, such as preferential treatment and quotas, are being progressively introduced for a broader spectrum of vulnerable groups.

On disabilities, Ukraine adopted a new system for assessing a person’s functioning in daily life and barrier-free principles for the provision of medical and rehabilitation services in healthcare facilities. The Commission encourages Ukraine to use the new EU guidelines on improving access to healthcare for people with disabilities: see at EU launches new guidelines to improve healthcare access for persons with disabilities - AccessibleEU.

The Ministry of Health is expected to adopt a new anti-corruption programme. The government introduced the requirement for health facilities to establish supervisory boards by 2027. Despite limited progress in the mitigation of corruption risks in market surveillance, progress was recorded in corruption repression, with several investigations in market surveillance authorities. Strengthening the governance transparency of the programme of medical guarantees through decision-making, clear institutional roles, and publicly accessible criteria for resource allocation, would constitute a structural anti-corruption measure with significant impact.

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH

This cluster covers: digital transformation and media (Chapter 10); taxation (Chapter 16); economic and monetary policy (Chapter 17); social policy and employment (Chapter 19); industrial policy (Chapter 20); science and research (Chapter 25); education and culture (Chapter 26); and customs union (Chapter 29).

Chapter 10 - Digital transformation and media

The EU supports the smooth functioning of the internal market for electronic communications, electronic commerce and audiovisual media services. The rules protect consumers and support the universal availability of modern services.

On digital services, Ukraine continued to expand and upgrade the Diia ecosystem. Diia.AI, the national AI assistant, was launched in late 2025 and continued to evolve during the reporting period. The Diia.Education platform continued to support digital literacy, with more than 2.9 million registered users by 2026. In December 2025, the Ministry of Digital Transformation upgraded the Diia app and portal to improve compliance with accessibility standards and ensure barrier-free access to digital public services. E-Apostille, e-Notary and

other online legal services continued to be implemented, enabling citizens in Ukraine and abroad to carry out legal procedures online. A draft law on digital accessibility was registered in Parliament.

As regards digital services acquis, Ukraine has taken initial steps to establish the institutional framework and build capacity for implementing EU digital legislation. Ukraine needs to take further steps to build the societal and institutional capacity and to establish the legal basis to effectively support the enforcement of the Digital Services Act and the Digital Markets Act as of EU accession, in line with the considerations and requirements outlined at the 2026 TAIEX workshops. Ukraine should also continue to align with the European Interoperability Framework to make public services more efficient and better serve businesses and citizens.

On electronic communications,Ukraine joined the EU’s Roam Like at Home area on 1 January 2026, following alignment with the EU roaming acquis. Ukraine launched consultation in May 2026 on a draft law to strengthen the independence of the National

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Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and Postal Services (NCEC). Ukraine also made progress in aligning with the EU acquis in the area of electronic communications infrastructure. Building on partial alignment with the Broadband Cost Reduction Directive (BCRD), Ukraine should continue aligning with the Gigabit Infrastructure Act (GIA) beyond provisions on the single information point, judicial remedies, access point and exemptions for certain types of civil works. Ukraine has not yet been able to fully implement acts related to the regulatory framework for radio spectrum policy, in particular the release of the 700 MHz band from TV broadcasting for mobile communications as a result of security constraints. The allocation of the 700 MHz band to mobile operators planned for 2026, should support the future deployment of 5G networks, including security requirements in line with the 5G Cybersecurity Toolbox.,

Ukraine continued to invest in digital solutions for the delivery of public services and promotion of governance transparency, with positive implications for corruption prevention and public budget savings. Platforms like Diia, Prozorro and DREAM facilitate service delivery, public procurement and reconstruction management and should be further enhanced to ensure end-to-end coverage.

Ukraine made some further progress on open data usage, maintaining more than 35 000 datasets on its open data portal. In September 2025, the government adopted a decision updating the list of datasets subject to publication as open data and identified datasets of high value, contributing to alignment with the Open Data Directive. Alignment with the EU acquis, includingthe Open Data Directive and Data Governance Act, remains partial and requires further legislative amendments.

On digital trust, Ukraine advanced in developing a digital identity wallet aligned with the EU Digital Identity Framework (eIDAS 2.0). The legal act on the functioning of the Integrated Electronic Identification System entered into force, reflecting the principles of the European Digital Identity Framework. The recognition of specific Ukrainian trust services as qualified under EU law is ongoing.

On cybersecurity, Ukraine continued to strengthen its legal framework and institutional capacity, supported by the cybersecurity strategy, updated legislation and the operational role of SSSCIP, CERT-UA and other relevant bodies. Further implementation of the EU acquis is needed to ensure full alignment with the NIS2 Directive.

Cooperation with ENISA and other EU cyber institutions advanced, strengthening Ukraine’s cyber resilience in the context of Russia’s ongoing war of aggression. In March 2026, Ukraine ratified the amendment to its Association Agreement to the EU Digital Europe Programme, enabling access to the EU Cybersecurity Reserve. Access to the EU Cybersecurity Reserve was granted by the Council on 15 June.

Regarding 5G security, Ukraine adopted a Protocol of Intent between the responsible authorities, including an action plan to develop 5G security rules in line with the EU 5G Cybersecurity Toolbox, including the exclusion of high-risk suppliers, and committed to aligning with the 5G Cybersecurity Toolbox. During the reporting period, the draft legislative package that implements the EU 5G Cybersecurity Toolbox has not yet been adopted. The legislative framework should be in place before any commercial assignment of 5G spectrum rights. Meanwhile, 5G pilot projects were implemented in Kyiv, Lviv, Borodianka and Kharkiv. Ukraine should effectively address risks stemming from the use of high-risk suppliers in these pilots.

On media, Ukrainian legislation remains largely in line with the Audiovisual Media Services Directive but is only partially aligned with the European Media Freedom Act (EMFA). As for AVMSD, further alignment requires, among others, removing the requirement for state registration of the media regulator’s legal acts, strengthening legal safeguards for the regulator’s independence, and ensuring adequate financial and human resources. Moreover, while the current media restrictions imposed by martial law, including restricting the

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transmission of programmes and audiovisual commercial content/communications, are still considered necessary to protect Ukraine’s information space in the current security situation, they will need to be reassessed upon lifting of martial law to meet the requirements under the AVMSD.

As for EMFA, Ukraine should continue the legislative works needed to implement the Regulation and ensure compliance with its provisions.

A new legislation entered into force in January 2026 to strengthen certain guarantees for media and journalists and improve access to information. However, a number of draft laws to align with the EU media acquis remain pending, including the draft law aimed to implement the EMFA.

On semiconductors, Ukraine is not fully aligned with the Chips Act. No formal progress was recorded in the reporting period.

On artificial Intelligence (AI), Ukraine should develop the necessary legal, governance and enforcement structures in line with the EU AI Act. Ukraine has adopted the National AI Strategy 2030 and is preparing draft legislation on regulating AI.

In relation to the protection of minors online, a Safer Internet Centre is operating in Ukraine with co-funding received under the Digital Europe Programme.

Chapter 16 - Taxation

EU rules on taxation cover value added tax and excise duties and aspects of corporate taxation. They also cover cooperation between tax administrations, including the exchange of information to prevent tax evasion.

Ukraine continued further aligning the national legislation on indirect taxation with the EU acquis. The temporary VAT exemption for importing electric vehicles into Ukraine was removed in January 2026. In March 2026, the Ministry of Finance adopted an order clarifying the VAT treatment for software programmes aimed at ensuring compliance with Article 24 of the EU VAT Directive. Legislation removing the VAT exemption on low-valued imported parcels was adopted in September 2026. However, further steps are needed to align national VAT rules with the EU acquis. Alignment with EU excise duty rates on alcohol, tobacco and energy products is ongoing, notably with the gradual revision of rates on manufactured tobacco by 2028. Ukraine still needs to align its tax warehousing system for alcohol, tobacco and energy products with the EU acquis.

On direct taxation, there has been no reform of the personal income tax. Moreover, the

corporate income tax is not yet fully in line with the EU acquis. The legislative work is

ongoing to align the national tax corporate framework with the rules of the EU Anti-Tax

Avoidance Directive.

On administrative cooperation and mutual assistance, secondary legislation implementing

the OECD Common Reporting Standard 2.0, which modernises financial account reporting

and brings it closer to the provisions of the EU Directive on Administrative Cooperation (DAC

8), was adopted in June 2026. The Law on certification of digital platform operators was

adopted in June 2026, in line with the provisions of the DAC 7. The first exchange of tax

information under the OECD country-by-country reporting standard corresponding to the

DAC 4 requirements for the reporting year 2024 was carried out in June 2026. Ukraine has

individual double taxation agreements in place with all EU Member States.

On operational capacity and digitalisation, the functionality of the State Tax Service’s online information system was improved with connections to the VAT Information Exchange System (VIES) to verify the validity of VAT identification numbers for taxpayers registered in the EU. The State Tax Service has further modernised tax administration with the e-audit IT

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solution – a digital, risk-based system replacing manual document checks with automated data analysis.

The State Tax Service adopted its Anti-Corruption Programme for 2026-2028. Internal anti- corruption controls resulted in 198 disciplinary sanctions, 17 criminal proceedings and 5 criminal charges. In the reporting period, four regional heads and senior officials of the State Tax Service were charged with bribery, kickbacks and abuse of office, while the acting head was dismissed amidst criminal investigations by anti-corruption authorities.

Chapter 17 - Economic and monetary policy

EU rules require the independence of central banks and prohibit them from directly financing the public sector. Member States coordinate their economic policies and are subject to fiscal, economic and financial surveillance.

In terms of monetary policy, the National Bank of Ukraine (NBU) has maintained its medium-term inflation-targeting framework, reintroduced in September 2024, while continuing a gradual liberalisation of foreign exchange restrictions – most recently in March 2026 – without triggering significant market volatility. Progress has been made in easing capital controls, including expanded dividend repatriation, relaxed settlement deadlines for key export sectors, and targeted exemptions for defence industry transfers. The NBU has avoided direct budget financing since 2023, although permitted under the martial law. However, further efforts are needed to fully comply with the monetary financing prohibition upon the lifting of martial law in Ukraine. In addition, full alignment with the EU acquis requires the adoption of measures to strengthen the independence of the NBU such as explicitly prioritising price stability as the primary objective, providing for safeguards against political interference and dismissal of the NBU Governor or board members and ensuring judicial review rights.

On economic policy, numerical fiscal rules have been continually suspended through the annual budget laws since the start of the Russia’s war of aggression. Medium-term budget planning was reinstated in 2024, bringing it closer to the requirements of EU legislation on medium-term budget frameworks. The 2027–2029 Budget Declaration represented a further step in this direction. It included a policy baseline scenario setting out the trajectory of the main revenue and expenditure indicators under unchanged policies, as well as an active- policy scenario incorporating planned revenue and expenditure measures and explaining how the government intends to achieve its medium-term fiscal objectives. The Budget Declaration also quantified the gap between the fiscal balance under current policies and defined fiscal objectives agreed with the IMF, explained changes in macroeconomic assumptions and deviations between previous forecasts, and included explanations on how public investment projects were reflected in the medium-term fiscal projections. However, further steps are needed to ensure full alignment with EU standards. These include: (i) consolidating general government data in line with the European System of Accounts methodology; and (ii) preparing and publishing detailed medium-term projections for both the baseline and active-policy scenarios covering the general government. Ukraine has not yet established an independent fiscal institution, though initial preparatory steps have been taken. Martial law and security concerns continue to disrupt the collection of key macroeconomic and financial statistics, including those needed for the macroeconomic imbalance procedure, as well as budget reporting.

Chapter 19 - Social policy and employment

EU rules in the social field include minimum standards for labour law, equality, health and safety at work and non-discrimination. They also promote social inclusion and social protection, and social dialogue at EU level.

In the area of labour law, the Ukraine national labour legislative framework needs to be modernised and aligned with the EU acquis. A draft of the new labour code was submitted to

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the Parliament in September 2026. Significant work is needed to further align the draft legislation with the relevant EU acquis.

On occupational health and safety at work (OSH) the current national legal framework has yet to be aligned with the EU acquis and international standards. As a first step, Ukraine should adopt legislation to align with the OSH Framework Directive 89/391/EEC.

Labour inspection legislation is not yet aligned with international labour standards. The capacity of the State Labour Service is limited. Inspection visits for undeclared work increased from 112 in 2024 to 267 in 2025. Inspections on labour safety increased from 695 in 2024 to 1 215 in 2025.

On social dialogue, a new President of the National Tripartite Social and Economic Council (NTSEC) was appointed in May 2026 and a meeting of the Presidium of the NTSEC was held in March 2026. Trade unions reported a lack of meaningful consultations of social partners on draft labour and occupational health and safety legislation, stating this contradicts the MoU signed between the government and social partners in July 2025, which enshrined the signatories’ shared commitment to advancing Ukraine’s labour reforms and strengthening social dialogue, as part of Ukraine’s accession process. An enabling environment for effective social dialogue needs to be ensured and capacities for both bipartite and tripartite social dialogue need to be strengthened.

On employment policy, the State Employment Service (SES) trained 93 000 people in 2025, a 26% increase from 2024. SES assisted 394 000 people to find employment in 2025, 19% more than 2024. In January 2026, a new Employment Strategy until 2030 was approved. In view of the implementation of the Youth Guarantee, the capacities of relevant actors, including the State Employment Service need reinforcing. Building on the State Employment Service’s strong operational resilience, adaptability, and openness to change, further strengthening its strategic and performance management, evidence-based service design and analytical capacities would support the implementation of the Employment Strategy and the Youth Guarantee.

The national budget for social inclusion and protection in 2026 increased by 10%, but adequacy remains a barrier, especially for persons with disabilities and persons in vulnerable situations. Bylaws to operationalise the law on social services need to be adopted and integrated social services at community level should be developed. Basic principles of housing policy legislation were adopted in January 2026, marking a step forward for the adoption of the social housing fund legislation. A new Strategy on Internally Displaced Persons was adopted in June 2026 and the law on basic social assistance was adopted on 13 October 2026.

Implementation of the Strategy for ensuring the right of every child to grow up in a family environment moved steadily forward. While the number has been decreasing, further work is needed as the number of children in institutions remains high (23 524 in 2025) with a significant proportion being children with disabilities. Patronage and adoptions have increased. Most local authorities still lack the resources and capacity to sustain quality, community-based

social services and alternative care options. The delivery of specialised training for professionals in childcare require strengthening, and the adequacy of skilled staff and professionalised social workforce needs enhancing. In this respect, Commission Notice - Guidance on independent living for persons with disabilities should be taken into account.

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On 8 April 2026, Ukraine approved the Action Plan for the implementation of the European Child Guarantee until 2030.

In the field of non-discrimination in employment and social policy, alignment with EU legislation remains incomplete, including as regards the Employment Equality Directive and the Racial Equality Directive. A law amending legislation to ensure the right of persons with disabilities to employment came into effect in January 2026. Ukraine needs to adopt implementing bylaws and ensure that mechanism for reasonable accommodation becomes effective. Legislation on equal treatment in employment and occupation should further align with the EU acquis. Unemployment rates among Roma remain high and more targeted efforts are needed to improve employment opportunities. In February 2026, Ukraine adopted legislation strengthening mechanisms against gender discrimination and sexual harassment in the armed forces.

On equality between women and men in employment and social policy, legislation needs to further align with the EU acquis. Legislative amendments to support families with children and create conditions that facilitate the combination of parenthood and professional activity was adopted in November 2025. Ukraine adopted in May 2026 the 2026-2028 operational plan for the implementation of the National Strategy to Close the Gender Pay Gap for the period up to 2030. Women are still underrepresented in managerial positions in the civil service.

Over the reporting period, the agreement for Ukraine’s participation in the Employment and Social Innovation (EaSI) Strand of the European Social Fund + (ESF+) entered into force.

Chapter 20 - Enterprise and industrial policy

EU industrial policy strengthens competitiveness, facilitates structural change and encourages a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).

On enterprise and industrial policy, some progress was made with the implementation of the SME Strategy. As of 25 June 2026, 35 out of 86 implementation measures were self- declared completed, while 47 are in progress, and four are not yet due. The notable measures include a Government Resolution establishing a unified format for business plans submitted under state support programmes for SMEs. The design of a dedicated industrial strategy hasn’t progressed to public consultation or adoption.

The Digital Innovation Development Strategy until 2030 started implementation phase focusing on the first three-year operational plan to integrate artificial intelligence and defence technologies into Ukraine’s economy.

The Law on the Main Principles of State Oversight was adopted in April 2026. The Law establishes the legal and organisational framework for state inspections, and reduces the administrative burden on business entities, notably by introducing audits and insurance, and downsizing the number of inspections.

On enterprise and industrial policy instruments, the Diia.Business project, that is jointly implemented by the Ministry of Digital Transformation and the Entrepreneurship and Export Promotion Office, continued to strengthen the entrepreneurial infrastructure – from new digital instruments (six e-services, five educational programmes, six online courses) to greater access to markets (13 national stands, 680 export consultations and 150 export market studies in 2025).

On small and medium-sized enterprises, the Law on the national development institution, in place since January 2026, sets out operational models and a special mandate to improve access to finance for target groups, mainly MSMEs. In 2025, the 5-7-9% programme delivered over 30 000 loans to businesses. The largest volumes of credit funds were provided for businesses in high war-risk areas, for development of the processing industries and investment projects.

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With regards to the Late Payment Directive, an analysis of the enforcement practices in the EU countries has been done with a view to develop the implementation concept for Ukraine.

On sectoral policies, the government has identified critical raw materials (CRMs) such as lithium, titanium, graphite and rare earths as a priority sector for economic development and integration into EU supply chains. In May 2026, the government endorsed the updated 2026- 2027 Roadmap under the EU-Ukraine strategic partnership for CRMs, and in June 2026 Ukraine has approved a 20-year strategy to develop the CRM and value-added industries, alongside the adoption of the operational action plan through 2028.

Chapter 25 - Science and research

The EU provides significant support for research and innovation ecosystem. All Member States can participate in the EU’s research and innovation programmes and benefit from them, especially where there is scientific excellence and solid investment in research and innovation.

In the area of research and innovation, Ukraine remains an Emerging Innovator, performing at 29% of the EU average in the European Innovation Scoreboard 2025, with the gap with the EU continuing to widen.

Expenditure on research and development remains low, at 0.39% of GDP in 2025.

Amendment to the Law on scientific and scientific-technical activity were adopted in March 2026 regarding research infrastructure and support for young scientists aiming to improve state support.

In February 2026, Ukraine conducted the first reading of the Law on Support and Development of Innovation Activities aimed at improving the regulatory framework, promoting cooperation between academia, research organisations and businesses, and facilitate the commercialisation of research results. An Action Plan 2026-2028 to implement the Strategy for the Development of Innovation Activity until 2030 was also developed. However, the innovation ecosystem needs strengthening, particularly in the areas of technology transfer, access to risk finance, support for deep-tech start-ups, and stronger links between science and industry.

On EU framework programmes, Ukrainian institutions and organsiation participate under 343 Horizon Europe projects, with 110 projects signed since September 2025, with EUR 33.45 millions net EU contribution awarded for Ukraine in the same period.. The increasing use of competitive funding schemes managed directly by the Ministry of Education and Science for institutions under its supervision raises questions about transparency, objectivity and potential conflicts of interest. At the same time, the role of the National Research Foundation of Ukraine (NRFU) as an independent funding body remains constrained by insufficient funding and inconsistencies in the legal framework applying to NRFU. To sustain the capacity to implement Horizon Europe, Ukraine needs to strengthen transparency and governance of its competitive research funding.

In December 2025, Ukraine adopted the European Research Area (ERA) roadmap for 2025- 2027 and in March 2026, the Framework Agreement between Ukraine and the EU on scientific and technological cooperation was renewed.

On Smart Specialisation, nine regions have created and trained regional teams, and conducted the Entrepreneurial Discovery Process in selected regions in 2026. Smart Specialisation Strategies in these regions are expected to be completed and move into the implementation phase.

Ukraine should continue creating and developing the rest of regional teams in order to effectively extend the Smart Specialisation process, acknowledging Ukraine's specific situation, challenges, recovery needs and integration into EU economic and innovation ecosystems

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Chapter 26 - Education and culture

The EU supports cooperation in education and culture through funding programmes and the coordination of Member State policy through the ‘open method of coordination’. The EU and the Member States must also prevent discrimination and ensure quality education for children of migrant workers, including those from disadvantaged backgrounds.

On education and training, Ukraine continued to advance on reforms focusing on system resilience, recovery and alignment with EU best practices. Safe and equitable access to quality education remains challenging. Education management information systems were further developed, but gaps remain in the availability, quality and use of disaggregated education data.

On preschool education, implementation of the Law on Preschool Education continued. A new competence-based State Standard was adopted in December 2025.

On school education, Ukraine continued to implement the New Ukrainian School reform. An updated State Standard for Primary Education was adopted in December 2025. Inclusive education arrangements were updated as well to strengthen individualised support. The reform of specialised upper secondary education advanced with 150 academic lyceums selected to pilot the new model from September 2026, ahead of nationwide implementation in 2027. Ukraine participated d in the Programme for International Student Assessment (PISA) 2025 and prepared for the Teaching and Learning International Survey (TALIS+) 2026.

On vocational education and training (VET), governance reforms progressed with the approval of a model regulation and procedure for establishing supervisory boards in VET institutions, strengthening management and links with labour market needs. The qualifications system was strengthened, including further steps to reference the National Qualifications Framework to the European Qualifications Framework. Work-based learning continued to expand, including dual education. Ukraine remained engaged in the European Alliance for Apprenticeships (EafA) following its national commitment since 2025, demonstrating its commitment to improving youth and adult employment. More local stakeholders should be encouraged to join the Alliance through pledges, enabling them to exchange good practices and strengthen quality apprenticeships.

On higher education, the government updated the Strategy for the Development of Higher Education 2022-2032 and adopted its Operational Plan for 2025-2028 in December 2025. In August 2026, Parliament adopted legislation reforming the model of state financial support for higher education.

Ukraine continued implementing Bologna Process tools, and the National action plan on external quality assurance (2024-2026). A Law on Academic Integrity was adopted in December 2025. It An audit of academic councils for the award of academic degrees was undertaken and 76 academic integrity violations sanctioned.

Ukraine continued to benefit from the international dimension of the Erasmus+ Programme.

Preparations started for establishing a dedicated Erasmus+ national agency, with a view to

participation in the next programme period.

On youth, the State Targeted Social Programme ‘Youth of Ukraine: Generation of Resilience’ (2026-2030) was adopted in January 2026.The National Youth Council commenced its work with a new composition in March 2026.

On sports, amendments to the Law on Physical Culture and Sport strengthened the legal framework for adaptive sport and sport for war veterans. The State Targeted Social Programme for the Development of Physical Culture and Sport until 2030 was adopted in December 2025. Ukraine continued taking part in the European Week of Sport.

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On culture, Ukraine continued implementing the Strategy for the Development of Culture and its operational plan for 2025-2027. Further efforts are required to operationalise the plan’s objectives, align them with the priorities of the local authorities. Ukraine continued full participation in the Creative Europe Programme.

Ukraine made progress in mitigating corruption risks, including by streamlining rules on leasing property of public education institutions, introducing mandatory conflict of interest checks in educational literature assessments, conducting institutional audits and increasing use of digital tools, such as DREAM, for funding and infrastructure investments.

Chapter 29 - Customs union

All EU Member States are part of the EU customs union and follow the same customs rules and procedures. This requires legislative alignment as well as adequate implementing and enforcement capacity, and access to and interoperability with the EU electronic customs environment.

As regards customs legislation, a new draft Customs Code, intended to align national legislation with the EU acquis, was approved in first reading by the Verkhovna Rada on 19 August 2026. Novelties, in line with the EU acquis, relate to customs representation, authorisations, placing goods under a customs procedure, presentation of goods, temporary storage as well as customs control, including on post-clearance control. In addition, the new Code includes provisions on duty relief, implements part of the EU secondary legislation on customs and regulates the organisation of the State Customs Service (SCS).

There was progress in the implementation of the mid-term Plan of measures to achieve the objectives of customs reform within the framework of the National Revenue Strategy for 2024-2030. The use of the common transit procedure was further expanded. Ukraine continues to be an active Contracting Party of the Common Transit Convention and made good progress in updating the IT system to the latest New Computerised Transit System phase (NCTS phase 6 – opt-in).

The number of authorised economic operators (AEO) increased to 130 by August 2026 from 100 in the same period of 2025, with 7 AEO granted also AEO Security and Safety status. Further progress is required on the authorisation on Safety and Security for the mutual recognition of AEOs between the EU and Ukraine.

On customs digitalisation, the updated Strategic Plan for the Digital Development of the State Customs Service until 2030 was approved by the Ministry of Finance in July 2026. The technical specifications for the new Customs Clearance System were adopted to align with EU standards, including enhanced functionalities such as export and import systems. However, these technical specifications have yet to be implemented.

On administrative capacity building, good progress was registered in the reporting period. The new Head of SCS was appointed by the Cabinet of Ministers on 10 April 2026 based on a transparent and accountable competition with the engagement of international experts. Following the appointment of the new Head of the SCS, the re-attestation of the SCS personnel was launched in line with the provisions of the Customs Code. The procedure on re-attestation of staff is pending.

The SCS continued to develop competency-based human resource management.

Combating large-scale smuggling in Ukraine should be strengthened by operationalising and deepening cooperation between the Economic Security Bureau and the SCS.

Efforts to address corruption within the customs administration should be enhanced. The number of disciplinary actions against customs officers and of referrals to law enforcement decreased by nearly half, despite an increase by one third in the reporting of possible corruption offences. Most measures foreseen under the State Anti-Corruption Programme

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2023-2025 were either fully or partially fulfilled, except those aimed at strengthening the SCS’ Public Council and cooperation with businesses and civil society.

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY

This cluster covers: transport policy (Chapter 14); energy (Chapter 15); trans-European networks (Chapter 21); and environment and climate change (Chapter 27).

Chapter 14 - Transport policy

The EU has common rules on technical and safety standards, security, social standards, State aid and market liberalisation in road transport, railways, inland waterways, multimodal transport, aviation and maritime transport.

In the transport sector, Ukraine continues to focus on the implementation of the national transport strategy until 2030 and the strategy for developing border infrastructure. Further progress is needed to decarbonise road, air and maritime transport by promoting greater use of alternative fuels and infrastructure and developing and implementing sustainable urban mobility plans (SUMPs). Ukraine is encouraged to strengthen its participation, as an observer, in the work of the Transport Community Treaty.

On road transport, while some steps towards alignment have taken place, the regulatory reforms need to continue aligning with the EU’s social and market acquis. The Law on access to occupation of road transport operator and the secondary legislation to establish a national electronic register of road transport operators are being finalised. Alignment is gradually taking place on working time and rest period rules, including the

mandatory equipment of G2V2 smart tachographs for newly registered vehicles. To ensure continued alignment with the EU acquis, regulatory reforms on road charging and tolling infrastructure, road safety, roadworthiness testing, weight and dimensions, transport of dangerous goods and intelligent transport system (ITS) should be advanced. Regarding roadworthiness testing, further work is needed to ensure the implementation of mandatory periodical roadworthiness inspection of all M and N category vehicles.

On rail transport, Ukraine adopted the Law on railway transport safety and interoperability, laying the foundation for further harmonisation with EU standards. To ensure effective implementation, the necessary legislative and institutional framework for a fully competitive rail market should be established. This requires adoption of the rail market law aligning with the EU acquis and introducing its key elements: functional separation of infrastructure management from provision of transport services, non-discriminatory and transparent access to the infrastructure, an independent infrastructure manager and an independent railway regulatory body. In addition, the creation of a framework for public service obligation (PSO) contracts, capitalising on the PSO pilot scheme for public procurement of long- distance domestic passenger rail transportation services, with approximately EUR 370 million allocated from the state budget for 2026. Additionally, independent national safety authority and accident investigation body should be established.

In maritime transport, harmonisation with the EU acquis, including safety and security standards, port state control and vessel traffic monitoring is needed. Although the Ukrainian flag has been removed from the blacklist of the Paris Memorandum of Understanding on

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Port State Controlist, the structural weaknesses of the flag state administration remain, limiting the attractiveness of its flag registry. Work on establishing a vessel traffic monitoring and information system (VTIMS) is ongoing. Remaining barriers to ensure open and non- discriminatory maritime transport market should be removed, in line with its Deep and Comprehensive Free Trade Area (DCFTA) commitments.

The development and implementation of inland waterway transport regulations are ongoing, aiming to increase navigation safety and market functionality. Amendments to the river service regulations were adopted and the process for Union recognition of Ukrainian inland waterway crew certificates, and connection to the European Crew Database, is ongoing.

On aviation, the airspace remains closed but there is partial alignment with Union aviation safetyand securityrules. The first Joint Committee meeting under the EU-Ukraine Common Aviation Area Agreement was held. The establishment of an independent slot coordinator and a supervisory authority for airport charges remains outstanding. Regulatory efforts to further align the legislation with EU requirements related to air traffic management and air market operation are needed. Work on sustainable aviation fuels and the formal establishment of a task force for EASA certification of Ukrainian aeronautical products has not begun.

On combined transport, Ukraine has not yet aligned with the Union Combined Transport Directive. Further legislative alignment in passenger rights is needed across all transport modes as Ukraine’s legislation is partially aligned with the EU acquis. Ukraine should in particular specify conditions regarding passengers’ assistance in cases of cancelled or delayed flights, advance payments and accessibility of persons with disabilities and persons with reduced mobility.

On corruption, systematic efforts are required to accelerate the alignment of transport state- owned enterprises with OECD corporate governance standards, ensuring operational independence of supervisory boards and enhancing financial transparency, e.g. publication of road project data under the State Anti-Corruption Programme.

Chapter 15 - Energy

EU energy policy covers energy supply, infrastructure, the internal energy market, consumers, renewable energy, energy efficiency, nuclear energy, nuclear safety, radiation protection and nuclear safeguards.

In terms of security of supply, alignment with the risk preparedness Regulation in the electricity sector and gas security of supply Regulation is still pending. Commercial electricity export capacity from the EU to Ukraine was increased to up to 2.45 GW during the winter of 2025-2026. Together with 250 MW of emergency capacity, this helped balancing Ukraine’s energy system over the winter. Ukraine’s gas transmission system operator GTSOU increased firm capacity at all interconnection points, enabling increased gas imports. Alignment with Regulation 2024/1366 establishing a network code on sector-specific rules for cybersecurity aspects of cross-border electricity flows is still pending.

In the oil sector, Ukraine has established the legal and regulatory framework for its minimum emergency reserves system. The framework is broadly aligned with the requirements of Directive 2009/119/EC, with the main regulatory arrangements now in place. However, implementation of the framework has so far been affected by martial law.

As regards the internal energy market, in April 2026 Ukraine took a major step towards full market coupling with the EU by adopting primary legislation partially aligning with the Electricity Integration Package (EIP). Limited progress on the adoption of EIP-related secondary legislation is ongoing: the National Energy and Utilities Regulatory Commission (NEURC) has adopted a comprehensive plan and adopted three resolutions progressing on the implementation of the EIP. In August 2026, NEURC designated the nominated electricity

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market operator (NEMO), in line with Ukraine Plan requirements. Day-ahead, intraday and balancing markets continue to operate under price caps. Since January 2026, NEURC reviewed single maximum price caps for certain electricity market segments several times. However, Ukraine needs to continue the gradual phase-out of wholesale electricity price caps in all market segments not to limit competitiveness and transparency in the market. In October 2025 and in April 2026, the government prolonged for half a year each, until 31 October 2026, the preferential end-user electricity tariff for households, which is not cost- reflective and has remained unchanged since June 2024. The Public Service Obligation mechanism remains incompliant with the EIP. NEURC continues the implementation of REMIT with improved monitoring and new investigations. In July 2026, NEURC resumed publication of key market-related information that improves transparency.

The debts in the balancing market remain high and require implementation of measures to prevent further accumulation. Tariffs are not cost-reflective and insufficient for investments and maintenance needed for energy and climate reforms. In the coming period, Ukraine needs to remove customs duties and quantitative restrictions on imports and exports of Network Energy with other parties, in line with Article 41 of the Energy Community Treaty. There is little progress to report on the gas market, where the public service obligation for gas-based electricity producers was lifted. Reforms including ensuring compliant unbundling of gas distribution system operators, the gradual phase out of public service obligations and lifting the export ban on natural gas remain an important priority for Ukraine. Work on the gradual liberalisation of energy markets and establishing a financing mechanism for vulnerable customers’ needs to accelerate.

In the area of renewable energy, Parliament adopted legislation in February 2026, addressing shortcomings in Ukraine’s renewable energy support auction schemes after weak participation in early pilot rounds. Work on separating the renewable energy surcharge from the transmission tariff progressed, albeit slowly

Adoption of the legislation introducing simplified permitting procedures for renewable energy investments is a positive step towards alignment with RED II and RED III Directives. Alignment with EU sustainability and greenhouse gas emission criteria for biofuels, bioliquids and biomass remains incomplete.

On energy efficiency, some steps were taken to further align with the EU’s Energy Efficiency (EED) and Energy Performance of Buildings (EPBD) Directives, although capacity constraints remain. Regarding the EE Directive, in October 2025 Ukraine introduced a national target for annual consumption reduction targets as well as energy consumption reduction targets for central government buildings. In July 2026, Ukraine adopted a law providing incentives for district heating and high-efficiency cogeneration and renewable heat sources co-generation, addressing a pre-identified gap in this area. However, several elements of the framework require strengthening, such as the implementation of mandatory energy efficiency criteria in public procurement, establishing a legal framework for applying the ‘energy efficiency first’ principle and embedding it in recovery efforts, strengthening monitoring systems and enforcing high energy efficiency standards. Regarding the EPBD Directive, requirements for nearly-zero energy buildings and a 2026 national plan to improve energy performance of central government buildings were adopted. Additional work is required to implement the 2024 EPBD. As regards the EU Ecodesign Directive, in February 2026, Ukraine adopted a regulation on establishing ecodesign requirements for servers and data storage products, aligned with EU Regulation 2019/424 and applicable from August 2026.

On governance, in November 2025 Operation Midas exposed an alleged large-scale embezzlement and money laundering scheme within Energoatom’s public procurement, implicating top officials, including the then-energy minister. The government responded by overhauling governance in key energy SOEs, revising their charters, restructuring supervisory boards with majority-independent members appointed via competitive selection

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and eliminating qualified majority voting requirements. A model charter was also introduced, while the State Enterprise Guaranteed Buyer was converted into a joint-stock company with updated governance rules. Further corruption risks surfaced in January 2026, when an insider-trading probe was launched on an Energoatom electricity auction. To address systemic vulnerabilities, Ukraine must intensify anti-corruption efforts in the energy sector, embedding targeted measures in the 2026-2030 state anti-corruption strategy. Political influence over the management of energy SOEs should continue to be tackled through effective separation of their management from policymaking. Some progress in this area was achieved with the approval of new charters for both TSOs and key SOEs. However, the independence of the energy regulator NEURC needs to be ensured and related legislative amendments are yet to be adopted. The last two rotations in the position of NEURC Chairman executed within a 16-day period in August 2026, though formally compliant, raise questions about circumvention of legal restrictions on consecutive Chairmanship terms.

Based on an inclusive consultation process, in June 2026 Ukraine adopted an update of its National Energy and Climate Plan (NECP). It extends the sectoral coverage, adds new measures, such as on sustainability criteria for biofuels and renewables uptake in the heating and cooling sector, and sets a more ambitious energy efficiency target. Adoption of a resolution on the monitoring of the implementation of the NECP is pending.

On nuclear energy, nuclear safety, radioactive waste, fuel management and radiation

protection, only minor progress was made on alignment with the Euratom acquis and on

regulatory capacities. Progress is ongoing to ensure Ukraine’s participation in the ECURIE

system. The Supervisory Board of Energoatom was completed, and the selection of a new

management board is ongoing. Onnuclear safeguards, the existing systems of accountancy

and control of nuclear materials in Ukraine still need to be adapted to accommodate for the

safeguards provisions of the Euratom Treaty.

Chapter 21 - Trans-European networks

The EU promotes Trans-European networks (TENs) in the areas of transport, telecommunications and energy to strengthen the internal market and contribute to growth and employment.

On the trans-European transport network (TEN-T), Ukraine has not yet fully aligned with the new TEN-T Guidelines and the Streamlining Directive. Despite infrastructure progress, the legal and institutional frameworks remain in the alignment phase.

To enhance connectivity and regional resilience, Ukraine secured EUR 73.5 million under the 2024 Connecting Europe Facility (CEF) Transport call for the 80 km Mostyska–Sknyliv (Lviv) project, making the first large-scale extension of EU standard gauge rail (1 435 mm) into western Ukraine. Electrification of the Chop–Uzhhorod rail section is in the final stages. A few CEF rail projects connecting Ukraine with EU Member States (Poland, Slovakia, Hungary, Romania) have already been implemented. The country started unlocking the potential of public-private partnerships (PPPs) for TEN-T infrastructure through the launch of the Chornomorsk port concession.

Ukraine should synchronise transport infrastructure planning and implementation with neighbouring countries, in line with the new TEN-T Regulation, prioritise upgrades of transport infrastructure at border crossing points and access routes and accelerate realisation of the key road and rail projects. Ensuring the accessibility of transport infrastructure, particularly for persons with disabilities or reduced mobility, should be addressed. Ukraine should also secure national funding to complement the co-financing offered through the CEF and ensure the timely implementation of its CEF funded projects. In this context, Ukraine is encouraged to participate proactively in the corridor forums in relation to the implementation of the EU Transport Corridors (ETC).

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In TEN-T alignment, the pending legislative definition of network sections hinders technical standards like the European Rail Traffic Management System (ERTMS), alternative fuels infrastructure and intelligent transport systems (ITS). The adoption of the act defining an exhaustive list of road, railway, port and airport sections forming part of the network should be prioritised and duly reflected in the single project pipeline (SPP) and the 2030 national transport strategy operational action plan. Continued efforts are needed to develop sustainable urban mobility plans (SUMPs) for cities with a population over 50 000, in line with the requirements for Union urban nodes.

Ukraine needs to strengthen project management capacity, operationalise the one-stop-shop permitting procedure and fully integrate TEN-T criteria into public investment management (PIM) evaluations. Strengthening road asset management and re-establishing the Road Fund are urgent to address maintenance gaps and ensure network sustainability.

As regards the trans-European energy network (TEN-E), Ukraine needs to align with the revised TEN-E Regulation by adopting the Law of Ukraine on infrastructure projects of public interest in the energy sector (Draft Law No. 13450), tabled in July 2025 and still pending adoption. Projects of mutual interest (PMIs) with Slovakia and Romania are advancing to provide electricity interconnections and enhance import/export potential. Discussions with Moldova on a new Project of Energy Community Interest (PECI) are ongoing to develop a 330 kV transmission line linking Bălți in Moldova with the Dnestrovsk hydropower plant in Ukraine. On natural gas network, physical upgrades of infrastructure in Bulgaria as well as removal of regulatory and administrative barriers increased the transmission capacity of the Trans-Balkan pipeline in the south-to-north direction of 4.2 bcm per year. Ukraine is at an early phase of development of hydrogen projects, including the Central European Hydrogen Corridor with Slovakia, Czechia, and Germany.

Chapter 27 - Environment and climate change

The EU promotes strong climate action, sustainable development and protection of the environment. EU rules contain provisions addressing horizontal environmental issues, climate change, water and air quality, waste management, nature protection, industrial pollution, chemicals, noise and civil protection.

Continued efforts are needed to fully align with the EU environmental and climate acquis and gradually put in place a sound mid-term budgetary framework related to its implementation, including costed financing plans for priority environmental and climate investments. The administrative capacity remains weakened with scattered competencies. This has been further impacted by the merger of the Ministry of Environment into the Ministry of Economy. Workload linked to the EU acquis alignment, together with funding constraints and deprioritisation of environmental issues lead to delayed adoption of legislation and affect implementation. While digitalisation in the environmental and climate sector is progressing, further efforts are required to improve enforcement, prevent corruption, and ensure accountability, particularly by enhancing, monitoring and data collection, governance structures and environmental compliance assurance.

Environment

Ukraine’s horizontal environmental legislation remains only partially aligned with the EU acquis. Continued efforts are needed to ensure full application of environmental impact assessment (EIA) and strategic environmental assessment (SEA) across all relevant plans and projects. Efforts to simplify administrative processes should avoid general exemptions and exclusions of entire project categories and safeguard the EU acquis requirements such as public consultation, assessment of the overall effects of a project, and avoidance of project splitting.

In June 2026, Ukraine joined the European Environment Agency (EEA) and its European Environmental Information and Observation Network (Eionet) as a cooperating country. In September 2025, the government launched a pilot project introducing a new preventive

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approach in environmental control and in April 2026 adopted a revised version of a horizontal law on state surveillance. A primary legislation on environmental control, aligned with the Environmental Control Reform Strategy, still needs to be adopted. Corruption risks remain high, notably in land use, extraction of minerals, forestry, waste management permits and tenders for concessions, while enforcement remains weak. Some progress was made in the deployment of digital tools to enhance the transparency of timber felling and exports. Over 4 900 cases of illegal logging were recorded yet only a small part of the proceeds was recovered in court.

Air quality legislation remains partially aligned with the EU acquis. Full compliance requires further steps, including national emission ceilings, monitoring of volatile organic compounds emissions, better sulphur content monitoring, and improvements in air quality data collection. Six new indicative ambient air quality monitoring stations were installed in 2026.

On waste management, legislation remains partially aligned with the EU acquis. In September 2026, Ukraine adopted a Circular Economy Strategy and its Action Plan By August 2026, 17 regional waste management plans out of 24 have been approved. In February 2026, a procedure for achieving target indicators for the preparation of construction and demolition waste for reuse, recycling and other material recovery was adopted. Overall, implementation and enforcement remain limited and will require an adequate framework and infrastructure on national and regional level to align with the Waste Framework Directive and other sectoral legislation on waste management.

On water quality, legislation remains partially aligned. Implementation of the Water Framework Directive and the Urban Wastewater Treatment Directive continued. Despite security risks, surface water monitoring continued, and in January 2026 the annual state water monitoring programme was adopted. In December 2025, the operational plan for implementing the water strategy for 2025-2027 as well as the state targeted environmental programme for the technical modernisation of municipal sewage and wastewater treatment companies until 2034 were adopted. In June 2026, resolutions amending the procedure for state water monitoring and the special water use permitting system were also adopted. The government continued to promote the river basin management plans at national and local level, but implementation remains challenging. Weak administrative capacity, limited funding, and incomplete alignment with the EU acquis, notably on nitrates, drinking water and wastewater, hampered progress. Ukraine should speed up alignment with the Nitrates Directive, inter alia, to meet its commitment to implement certain EU production standards by the end of 2028, as committed under the Deep and Comprehensive Free Trade Area (DCFTA). Measures to ensure cost recovery while safeguarding access to water and sanitation rights are still needed.

On nature protection, alignment with the EU acquis remains at an early stage, with the Biodiversity Strategy until 2035 and an Action Plan for 2026-2028 adopted in June 2026 as a policy cornerstone in this area. In November 2025, Ukraine also took steps towards alignment with the EUlegislation on deforestation through the adoption of a pilot project resolution on timber exports. In January 2026, the procedure for establishing criteria for classifying invasive alien species was adopted. Ukraine submitted its country reports under the Nagoya and Cartagena Protocols on time. Further alignment is needed on the acquis related to the protection of species and habitats, deforestation, zoos, and genetic resources. Concerns also persist over construction projects, affecting protected areas and areas not yet designated for protection, reflecting limited alignment with the EU nature protection acquis.

On industrial pollution and risk management, alignment oflegislation remains partial. Between September 2025 and March 2026, a set of implementing acts for the operationalisation of the Law on industrial pollution was adopted. In March 2026, a targeted programme to support enterprises implementing best available techniques (BATs) was approved. Ukraine continued working on the integrated environmental permitting system. Alignment with the EU Industrial Emissions Directive still requires additional secondary

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legislation and proper implementation to meet the 2028 alignment target in the revised DCFTA.

Chemical safety legislation is partially aligned. During the reporting period, Ukraine reinforced its cooperation with the European Chemicals Agency. As part of a wider approach to hazardous waste management, Ukraine needs to implement asbestos management rules, set up certified laboratories, and create a registry of landfills licensed to handle asbestos. In the area of biocides, Ukraine needs to align its legislation with the EU acquis and strengthen its capacity for inspection and enforcement.

Ukraine is at early stage of alignment with the EU acquis on noise.

On civil protection, Ukraine is an active participant in the Union Civil Protection Mechanism (UCPM) and contributes to the European Civil Protection Pool (ECPP). It has offered 11 capacities, with two already certified under the UCPM. In 2026, Ukraine made its first UCPM deployment by providing a large wildfire-fighting module to France. It has also registered its first aerial assets in the Common Emergency, Communication and Information System (CECIS) and began their ECPP certification.

In October 2025, Ukraine adopted zoning of territories according to emergency risks linked to high-risk facilities and dangerous geological, hydrological, and meteorological phenomena and processes. In 2025, Ukraine gained access to the Trans European Services for Telematics between Administrations (TESTA) network, a key step towards the CECIS access for the State Emergency Service (SESU), which is still pending.

Ukraine needs to expand UCPM-trained staff, notably English-speaking Incident Commanders and Host Nation Support officers, and increase participation in UCPM exercises and the Knowledge Network. Further work is needed to strengthen the legislative and operational framework for prevention, preparedness, Host Nation Support, interinstitutional coordination, and cross-border cooperation under the UCPM. Ukraine must submit a Disaster Risk Management Summary Report by 31 December 2026, and every three years thereafter.

Climate change

Ukraine made some progress on climate change during the reporting period. In October 2025, Ukraine submitted its first biennial transparency report to the United Nations Framework Convention on Climate Change (UNFCCC) and adopted its Nationally Determined Contribution (NDC) under the Paris Agreement for the period up to 2035, including a target to reduce emissions by more than 65% compared to 1990 levels. This leaves room for a substantial increase in emissions compared to 2024. In April 2026 Ukraine submitted to the UNFCCC Secretariat the National Inventory Document (NID) on greenhouse gas emissions and removals together with the relevant Common Reporting Tables (CRTs), in accordance with the requirements of the Enhanced Transparency Framework (ETF) of the Paris Agreement. Moreover, in June 2026, Ukraine adopted a new Long-Term Low Emission Development Strategy factoring in the objective of reaching climate-neutrality by 2050 and a resolution on the implementation of Article 6 of the Paris Agreement, providing for the establishment of the National Carbon Registry.

In January 2026, Ukraine adopted the resolution establishing a Scientific and Expert Council on Climate Change and Ozone Layer Preservation. On carbon pricing, work is ongoing to extend the scope of Ukraine’s system for monitoring, reporting, verification of greenhouse gas emissions at installation level and accreditation of verifiers (MRVA) to additional ETS sectors, including aviation and shipping, and on developing legislation for a national Emission Trading System (ETS), now under consideration of the Rada. Further efforts to align with road transport and buildings (ETS2 sectors) are needed, as well as to ensure that data is collected at the appropriate level. In March 2026, Parliament rejected the draft law ratifying the Kigali Amendment to the Montreal Protocol and alignment with EU standards on fluorinated gases and ozone-depleting substances remains incomplete. At the same time,

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some progress was made on consumer information of vehicle emissions, as amendments adopted in September 2025 require sellers of new passenger cars to provide standardised information on fuel consumption and CO2 emissions by June 2026.

An updated NECP, covering additional sectors, including agriculture, forestry and land use, was approved by the government in June 2026. The procedure for monitoring and evaluating the implementation of state climate policy, including the NECP, has not yet been adopted.

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION

This cluster covers: agriculture and rural development (Chapter 11); food safety, veterinary and phytosanitary policy (Chapter 12); fisheries and aquaculture (Chapter 13); regional policy and coordination of structural instruments (Chapter 22); and financial and budgetary provisions (Chapter 33).

Chapter 11 - Agriculture and rural development

The EU’s common agricultural policy supports farmers and contributes to ensuring Europe’s food security. It helps tackle climate change and the sustainable management of natural resources; preserves rural areas and landscapes; and supports the rural economy by promoting jobs in farming, agri-food industries and related sectors. This requires robust management and control systems. There are also common EU rules for marketing standards, quality policy and organic farming.

On horizontal issues, the framework law on agricultural support was adopted, which provides the legal basis for the paying agency, the integrated administration and control system (IACS) and the farm sustainability data network (FSDN). The Farmers Support Fund (a designated paying agency) needs to increase its capacity and become operational to prepare for the administration of the common agricultural policy (CAP) as of the date of accession. Further work is needed to develop an operational agricultural knowledge and innovation system. The advisory services need to be strengthened.

Ukraine reported that in 2025 public support to agricultural producers was provided through SAR, the main support and data management structure, except for the additional payment to family farms towards state social insurance, managed by the State Tax Service of Ukraine. SAR was merged into the responsible Ministry in February 2026. Ukraine should continue developing the IACS, including the land parcel identification system (LPIS), and ensure interoperability of its components. On FSDN, pilots in Poltava and Zhytomyr continued. Activities were also expanded to Lviv, and a liaison unit has been established.

On agricultural markets – common market organisation (CMO),legislative alignment notably on wine and spirits, hops and marketing standards continued. Vineyard and winery registers remain to be developed. The legal framework for producer organisations is still under preparation.

On rural development, support scheme priorities are set out in the 2030 strategy and its operational plan. The current support system remains a mix of area-based and livestock- related measures, schemes for affected areas, demining support, subsidised finance and grants, and machine procurement compensation. Decoupling and conditionality should be introduced to strengthen compliance with the CAP. The LEADER approach should be further developed, translating existing innovation groups into concrete delivery arrangements for rural development.

On quality policy,the legal framework for geographical indications is broadly in place and implementation is progressing, with certification bodies being developed and accreditation work underway. Capacity for certification and official controls needs to be strengthened.

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On organic farming, legislative alignment, monitoring and control need further development. A law to align with the EU acquis on organic production and labelling was adopted in June 2026.

On the fight against corruption, the Ukrainian authorities are obliged to prevent, detect and report irregularities. Public support to the sector requires strengthened financial management, monitoring and control including through digital tools, including the State Agrarian Register (SAR). The land bank has improved leasing procedures of state agricultural land. Enforcement authorities halted large-scale grain misappropriation schemes. Ukraine should avoid re-introducing corruption-prone free-of-charge privatisation schemes of agricultural land.

Chapter 12 - Food safety, veterinary and phytosanitary policy

The EU food safety acquis, including hygiene rules for foodstuff production, ensures a high level of food and feed safety, and a high level of protection of consumer interests. Animal health and welfare are safeguarded, together with plant health, the quality of seeds, plant reproductive material, animal nutrition and the use of plant protection products.

On general food safety, the State Service on Food Safety and Consumer Protection (SSUFSCP) continued its functional reform process. Ukraine continued implementing its food safety framework. Effective implementation continues to be constrained by limited institutional capacity, including laboratories, qualified personnel and functioning state registers. Ukraine continued the digitalisation of food safety-related processes, including tools supporting traceability, certification and official controls. Current limitations to official controls under martial law continued hampering the effective implementation of food safety, veterinary and phytosanitary legislation. Ukraine should resume risk-based controls systematically, based on the transparency system, and enable the full implementation of official controls, in line with its commitment under the revised DCFTA. Ukraine should also step up efforts to reduce corruption risks in the sector, which remain high.

On veterinary policy, animal health legislation is not yet aligned with the EU acquis and key enforcement arrangements, registers and IT systems are not yet fully operational. The amended Law on veterinary medicine and animal welfare entered into force in March 2026. The system for animal disease control remains to be fully aligned with the acquis and vaccination to be stepped up, in particular against rabies.

On animal welfare, further progress was made through the entry into force of legislation on the welfare of animals on farm and at the time of slaughter, the preparation of legislation on the welfare of animals during transport, the ongoing implementation of Ukraine’s animal welfare roadmap for 2025-2027 and the inclusion of relevant measures in the livestock development programme until 2033. In particular, Order 224, adopted in 2021, has entered into force in January 2026, thus legally banning the use of barred cages for laying hens in Ukraine, among other alignments with EU legislation. Effective implementation however remains at an early stage. Official controls are not fully operational, and key implementation tools are not yet in place, including training systems, certificates of competence, registries, checklists and standard operating procedures.

Use of the EU trade control and expert system (TRACES) improved countrywide, with over 38 000 certificates issued since September 2025 until 31 August 2026, for 32 commodities.

On the placing on the market of food, feed and animal by-products, implementing legislation was adopted, including amendments to hygienic requirements for the production and circulation of food products of animal origin and requirements for traceability of animal by-products. Progress was made in strengthening risk management; however, official controls remain only partially aligned with the EU acquis. An EU compliant system of collection, storage and processing of animal by-products is not yet in place in the country.

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On food safety rules and specific rules for feed, new implementing legislation provided for progress in sampling and laboratory analysis of food, traceability of animal by-products and the operation of facilities. As regards specific rules for feed, the amended Law on veterinary medicine and animal welfare includes rules for medicated feed.

On phytosanitary policy, Ukraine advanced towards alignment with EU legislation through the adoption of a new law on plant health, entering into force in January 2028. Initial implementation steps were made with the review of inspection procedures, creation of a professional operator registration system, update of training requirements, and the fully operational electronic phytosanitary certificates (e-Phyto) exchange system. Official use of the e-Phyto system began in February 2025 and over 240 000 e-Phyto certificates have since been transmitted, with more than 180 000 to the EU via TRACES. On 1 November 2025, Ukraine fully transitioned to e-Phyto for exports to the EU, discontinuing paper certificates. On the marketing of seed and other plant reproductive material, the country should first focus on fully aligning with the EU acquis on the rules on plant (PRM) and forest reproductive material (FRM). In addition, Ukraine must establish the necessary institutional frameworks, governance structures, and technical capacities to set up, implement and enforce fully functioning certification systems for PRM and FRM.

In the area of genetically modified organisms (GMOs), Ukraine has advanced in developing acts and preparatory measures to implement and enforce the primary GMO law, which entered into force in September 2026. Further work is needed to ensure sufficient readiness for its implementation and enforcement.

Chapter 13 - Fisheries and aquaculture

TheCommon Fisheries Policy (CFP) lays down rules on fisheries management, protects marine biological resources and limits the environmental impact of fisheries. It also covers control and inspection, market policy, aquaculture and support measures.

Ukraine adopted the framework act for the functioning of the e-Fish system in September 2025 and an operational plan for implementation of the fisheries sector strategy in March 2026.

On fisheries management, Ukraine continued to digitalise administrative procedures through e-Fish, which improved transparency and reduced the administrative burden. The system still requires further development to support EU-aligned traceability, data collection, control and inspection. Priority modules, including related to traceability documents, catch certificates, fisheries data collection and state control, are still to be developed, and financing for the remaining modules has not yet been secured. Further progress on resource and fleet management, including data collection, licensing, control and balancing fishing capacity with available resources, depends on the adoption of the draft law aligning the fisheries sector with the EU acquis.

There was no significant development in the area of inspection and control. The Law on traceability of aquatic biological resources and derived products has been adopted, but its effective implementation depends on implementing legislation and the corresponding roll-out of IT solutions in e-Fish. The lack of a fully effective inspection and control system continues to hamper the fight against illegal, unreported and unregulated fishing. While equipment for scientific monitoring and fisheries management was provided, administrative, inspection and control capacity still needs to be strengthened, in view of full compliance with CFP requirements.

On market policy, further efforts are needed to align with the acquis on marketing standards, labelling, price reporting and market monitoring. On data collectionand scientific advice, the legal framework remains incomplete pending adoption of a draft law, which would introduce fisheries data collection plans and a national correspondent.

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On aquaculture, further efforts are needed to align the legal framework on alien and locally absent species and to finalise and implement the strategic planning framework for aquaculture. The operational plan adopted in March 2026 sets out measures relevant to aquaculture development, including data collection and support for modern production methods, but additional legislative alignment is still required.

On international agreements, Ukraine continued to participate in the work of the General Fisheries Commission for the Mediterranean (GFCM) and became a full member in November 2025. However, reporting gaps remained, notably due to the suspension of Black Sea fisheries activities and limitations in socio-economic and landings data. Further alignment is needed on external fisheries, including an authorisation regime for vessels operating outside Ukrainian waters, and on the implementation of GFCM recommendations.

No progress was made on structural actions, State aid and maritime spatial planning during the reporting period.

Chapter 22 - Regional policy and coordination of structural instruments

Regional policy is the EU’s main tool for reducing regional disparities and investing in sustainable and inclusive socio-economic growth. It is operating through ‘shared management’ between the Commission and EU Member States. The implementation of cohesion policy programmes requires appropriate administrative capacity on programme and project level, the establishment of systems of sound financial management and control and also the fulfilment of other EU acquis elements such as environmental or public procurement legislation.

The reorganisation of the Ministry for Development of Communities and Territories into the Ministry for Communities, Territories and Internally Displaced Persons and Ministry for Recovery, Infrastructure and Transport has impacted reform progress and continuity of previously proposed commitments. Chapter 22 relevant reform actions should be undertaken urgently after the new Ministry is operational.

On the legislative framework, Ukraine adopted a resolution in November 2025 on regional development strategies and criteria for identifying functional types of territories, which still needs to be aligned with the NUTS classification. The 2025 Concept of the National Strategic Planning System aims to strengthen links between long-term, sectoral and regional planning. The Law on the principles of state regional policy still needs to be fully implemented by clarifying the content and structure of local strategic planning documents, facilitating their digitalisation, and linking them to adequate financial resources; strengthen the capacities of regional and local administrations on project development. The 2025 implementation report of the State Regional Development Strategy (SRDS) 2021-2027 and its action plan have been published, however the evaluation of gaps and challenges should be improved. The SRDS Action Plan 2025-2027 was updated to reflect new definition of macro-regions and functional territories, and preparations for drafting the SRDS 2028-2034 have started. The adopted 2026 and 2027 State Fund for Regional Development (SFRD) Regulations indicate limited progress in operationalizing regional development financing and strengthening links between strategic planning and public investment management. Further improvements are needed for a robust SFRD framework, financial allocation methodology and implementing arrangements. A digitalised SFRD system is yet to be fully established. Further efforts are needed for the SFRD alignment with EU cohesion policy principles, ensure transparent project selection, stable multiannual orientation and stronger links between funding decisions and strategic priorities.

In terms of the institutional framework, preparation for the cohesion policy programming architecture should begin, including the provisional designation of managing authorities, intermediate bodies where appropriate, and audit authorities. The capacity of the new Ministry for Communities, Territories and Internally Displaced Persons should be strengthened to coordinate regional policy across sectors and levels of government. The

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involvement of regional and local authorities, civil society and other relevant stakeholders in the preparation and monitoring of regional policy remains limited. Consultation mechanisms remain uneven and often insufficiently institutionalised. The reactivated Interagency Coordination Commission on regional development should become fully operational and ensure regular stakeholder involvement, and coordination between the central and subnational governance level stakeholders. Further efforts are needed to clarify the mandate and optimise the structure of the State Agency for Restoration and Infrastructure Development within the public investment management system, supported by predictable medium-term funding model to enable effective project prioritisation and long-term planning.

On administrative capacity, efforts are needed to invest in staff retention through appropriate remuneration, career development, and continuous training opportunities related to the management, monitoring, evaluation, communication, and control of EU funds including for public procurement. The restructuring of the Ministry into two administrative bodies has created additional challenges for the limited administrative resources and the need for additional coordination between both bodies. No targeted actions to train and retain staff have been identified neither at national nor sub-national levels.

On programming, limited progress was made in establishing a regional policy management system during the reporting period, with the main advances achieved in territorial cooperation programmes with Member States. A strategic planning document for cohesion policy is still needed to identify development needs, define priorities, objectives and expected results, and set out national and, where appropriate, regional programmes. Gaps remain between national, regional and local planning documents, and weak alignment between reconstruction needs, territorial development objectives and sectoral priorities. Programming remains insufficiently integrated and not yet fully based on a coherent medium-term investment logic. The development of each programme should be supported by a project portfolio making use of the full range of cohesion policy instruments, including investment projects, financial instruments and territorial development tools. Ukraine continues to participate in Interreg cooperation programmes, and the EU Strategy for the Danube Region.

On monitoring and evaluation, a monitoring and evaluation framework aligned with EU requirements should be established for future cohesion policy programmes, in line with the partnership principle. This framework should support the systematic assessment of progress towards programme objectives and expected results and ensure the effective involvement of relevant national, regional and local stakeholders throughout the programme cycle.

On financial management, control and audit, Ukraine has made some progress through amendments to state financial control legislation and improvements in internal control. However, the effectiveness of the Public Internal Financial Control system remains limited by fragmented implementation, uneven administrative capacity and weak coordination, including at local level. Further efforts are required to strengthen risk-based management, improve internal audit quality and ensure the effective functioning of audit bodies. Separate accounting and reporting arrangements for EU funds should be established to provide reliable audit trails and financial transparency.

On the fight against corruption, practical impact of anti-corruption programmes adopted at sub-national level remains limited, while the effectiveness of control systems continues to be uneven, particularly at the local level due to capacity and resources. Nevertheless, several integrity tools were piloted, including procurement integrity procedures, integrity plans and internal audits at municipalities. The functionality of the public investment management system DREAM as a transparency and anti-corruption tool should be further enhanced.

Chapter 33 - Financial and budgetary provisions

This chapter covers the rules governing the funding of the EU budget (‘own resources’). These resources mainly consist of: (i) contributions based on the gross national income of

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each Member State; (ii) customs duties; (iii) the non-recycled plastic resource and (iv) a resource based on value added tax. Member States must have the appropriate administrative capacity to adequately coordinate and ensure the correct calculation, collection, payment and control of own resources.

On traditional own resources, Ukraine has already implemented most of the fundamental principles affecting the own resources system. The roadmap was developed by the Ministry of Finance. The Ministry has also prepared Guidelines for the Implementation of the European Union Own Resources Framework to support the establishment of the administrative and procedural framework necessary for managing the EU own resources system in Ukraine.

The system of calculating the VAT-based own resource needs to be developed.

Issues related to national accounts and gross national income (GNI) data are addressed in Chapter 18 - statistics. Issues relating to own resources are addressed under Chapter 16 – taxation, Chapter 29 – Customs union, and Chapter 32 – financial control, while the own resource based on non-recycled plastic waste is linked to Chapter 27 – environment and climate change.

CLUSTER 6: EXTERNAL RELATIONS

This cluster covers: external relations (Chapter 30); and foreign, security and defence policy (Chapter 31).

Chapter 30 - External relations

The EU has a common commercial policy towards third countries, based on multilateral and bilateral agreements and autonomous measures. There are also EU rules on humanitarian aid and development policy.

On the common commercial policy, Ukraine continued to coordinate its positions and align closely with the EU, including within the WTO and its Dispute Settlement Body. Ukraine continued to comply with its WTO transparency obligations, latest domestic measure notification being in June 2026.

In the area of dual-use goods, Ukraine is yet to achieve full alignment with the latest EU acquis, including the annual updates as regards the list of dual-use items. Ukraine is a member of the Australia group, the Nuclear Suppliers Group and the Wassenaar Arrangement and has adopted and maintained a consolidated list of dual-use goods and technologies based on the EU acquis. Ukraine is in the process of aligning with the EU acquis on the screening of foreign direct investments (FDI).

On bilateral agreements with third countries, Ukraine has notified to the WTO of preferential bilateral trade agreements with 18 partners, eight of which do not have a preferential trade agreement with the EU. Ukraine is negotiating further preferential trade agreements with several partners and is also active in modernising existing agreements. In the reporting period, Ukraine ratified a preferential trade agreement with the United Arab Emirates and a free trade agreement with Türkiye, which awaited ratification since its signing in 2023. Meanwhile, the ratification of the modified free trade agreement with Montenegro and the modernised free trade agreement with EFTA is pending. Ukraine should continue to coordinate closely with the EU on international trade negotiations, in particular to ensure that, when it joins the EU, its commitments are compatible with those of the EU. It should also ensure the inclusion of an EU accession-linked expiration clause in the provisions of bilateral free trade and investment agreements.

There are no developments to report on bilateral investment treaties.

Ukraine has a legal framework in place to provide humanitarian aid to other countries. Ukraine has engaged in the provision of development aid by contributing to global food

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security efforts, although it has yet to develop its development policy in line with the relevant EU framework.

Chapter 31 - Foreign, security and defence policy

Member States must be able to conduct political dialogue under EU foreign, security and defence policy, align with EU statements, take part in EU actions, and apply agreed restrictive measures.

Ukraine continued intense political dialogue on foreign and security policy with the EU. During this dialogue, Ukraine consistently demonstrated alignment with the EU’s strategic positions and interests. Ukraine hosted an EU-Ukraine Foreign Ministers meeting in March 2026. The Ukrainian President, Foreign and Defence Ministers and other high-level officials were regularly invited to address the European Council and the Council meetings. The EU and Ukraine continued holding formal meetings under the EU-Ukraine Association Agreement. The EU-Ukraine joint security commitments continue to be implemented and serve as the guiding document for the EU and Member States’ support to Ukraine, complementary to Member States bilateral commitments towards Ukraine.

The institutional framework enabling Ukraine’s participation in common foreign and security policy (CFSP) and common security and defence policy (CSDP) is in place.

As regards the EU common foreign and security policy (CFSP), Ukraine’s alignment with statements by the High Representative on behalf of the EU and decisions of the Council of the EU on restrictive measures was at 99% as of 1 September 2026 and remains the same as in 2025. Ukraine is gradually aligning with the EU acquis on restrictive measures. It has mechanisms in place to ensure effective implementation of EU sanctions. The Criminal Code still needs to be amended, as sanctions evasion is still not a criminal offence in Ukraine. Ukraine should continue strengthening the implementation and enforcement of EU sanctions in line with the EU acquis.

Ukraine is a member of a large number of international organisations with which it maintains a well-established cooperation, including the UN, the Council of Europe, the Organisation for Security and Cooperation in Europe and Organisation for Black Sea Economic Cooperation. Ukraine continued to regularly align with EU positions at the United Nations, including supporting EU initiatives in the UN Human Rights Council. In the context of Ukraine’s diplomatic engagement with global partners in support of just and lasting peace, Ukraine initiated at the UN General Assembly, with EU support, the February 2026 Resolution ‘Support for lasting peace in Ukraine’, marking the fourth anniversary of Russia’s full-scale invasion of Ukraine. The EU and Ukraine together with Canada initiated the UN General Assembly Resolution ‘Return of the Ukrainian Children’ which was successfully adopted in December 2025. Ukraine is also a member of the UN Economic and Social Council (ECOSOC) for the 2026-2028 term and of the Commission on Narcotic Drugs until 2029. Ukraine was elected to the UNESCO Executive Board for 2025-2029 in November 2025 and is an active member of UNESCO in the area of protection of cultural heritage.

Ukraine is party to the Rome Statue of the International Criminal Court (ICC). Ukraine continues to deepen its cooperation with the Office of the Prosecutor of the ICC to strengthen investigation of international crimes committed in the context of Russia’s aggression against Ukraine. Ukraine has to further align its legislative framework with the provisions of the Rome Statute and its related instruments. In May 2026, Ukraine, together with other 35 countries and the EU, adopted the Enlarged Partial Agreement on the Management Committee of the Special Tribunal for the Crime of Aggression against Ukraine. In May, Ukraine also ratified the Convention establishing an International Claims Commission for Ukraine.

In February 2026, Ukraine adopted a new National Action Plan (NAP) for the Implementation of UN Security Council Resolution 1325 on Women, Peace and Security for the period up to 2030, along with an implementation roadmap. In June 2026, Ukraine adopted

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secondary legislation for the implementation of the Law on the Legal and Social Protection of Persons Affected by Sexual Violence related to Russia's Armed Aggression against Ukraine, but the compensation mechanism is still not implemented in practice and the funding for the compensation of survivors is lacking. Women are underrepresented in decision-making related to the peace process, despite calls by the Government Commissioner for Gender Policy and the civil society.

As regards non-proliferation and disarmament Ukraine has regularly aligned with the EU in most international fora dealing with non-proliferation over the reporting period. Ukraine complies with its international obligations under international export control regimes. Ukraine is encouraged to ratify the Arms Trade Treaty to align its legal framework of arms control with the Common Position 2008/944/CFSP and to finalise and adopt its national strategy for countering and preventing illegal trafficking of small arms and light weapons.

On security measures (classified information), Ukraine continued to implement its agreement on security of information with the EU on procedures for the exchange of classified information.  Ukraine should further align its legislation with EU acquis on the protection of classified information and adjust its physical and cryptographic measures in the area to be in a position to electronically exchange information classified at higher levels.

On the common security and defence policy (CSDP), cooperation on security and defence matters between Ukraine and the EU and its Member States was significantly increased. Ukraine closely cooperated with EU CSDP missions and benefited from training provided by EUMAM, as well as advisory support of EUAM.

Ukraine has developed substantial institutional capacities and experience in countering relentless hybrid, including cyber and foreign information manipulation and interference (FIMI), attacks by Russia and other malign actors. Ukraine continued to cooperate with the EU in the area of countering hybrid threats (including cyber threats and FIMI) based on the joint security commitments of June 2024. Ukraine held the regular EU-Ukraine Cyber Dialogue, and advanced cooperation in countering hybrid threats through a workshop on the exchange of lessons learned. In the context of international security, Ukraine has actively engaged in the negotiations of the final report of the UN Open-ended Working Group on security of and in the use of information and communications technologies 2021-2025, including through alignment with EU statements and submission of national positions. Ukraine should continue to gradually align with EU policies and legislation in the area of countering hybrid, including cyber and FIMI, threats and further strengthen its strategic, legal and institutional framework, as well as societal resilience to such threats. The fight against FIMI and disinformation is especially crucial in less developed regions, as well as among vulnerable groups of the population.

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ANNEX I - RELATIONS BETWEEN THE EU AND UKRAINE

Ukraine applied for EU membership on 28 February 2022 and was granted European perspective and candidate country status in June 2022. On 25 June 2024, following December 2023 European Council decision, the first inter-governmental conference opening the accession negotiations took place. The analytical examination of Ukraine’s level of alignment with EU legislation (screening) was completed in September 2025. On 15 June 2026 the second inter-governmental conference opened negotiations on cluster 1, on 14 July 2026 the third inter-governmental conference opened negotiations on cluster 6, and on 13 October the fourth inter-governmental conference opened negotiations on cluster 2 (internal market) and cluster 3 (competitiveness and inclusive growth). The work is ongoing to open all clusters as soon as possible.

The Association Agreement (AA), including a Deep and Comprehensive Free Trade Area (DCFTA), is the basis for the cooperation between the EU and Ukraine.

The Association Committee in Trade Configuration (ACTC), which oversees the implementation of the DCFTA, met on 2 December 2025.

On 14 October 2025, the European Commission and Ukraine formally adopted the decision to review the DCFTA, which entered into force on 29 October 2025. The agreement provides for a predictable, fair and balanced agreement entailing additional and reciprocal liberalisation, a robust safeguard clause, and Ukraine’s commitment to align to certain EU production standards.

Following the joint decision 2/2025 of the ACTC, reciprocal EU–Ukraine internal market treatment in the roaming sector entered into effect on 1 January 2026. The process is ongoing towards starting negotiations of an Agreement on Conformity Assessment and Acceptance of industrial products (ACAA).

There are still unsolved trade irritants, including a wood ban, export duties on certain oilseeds, a ban on metal scrap as well as a recent trend to apply barriers in the pharmaceutical sector. Certain discriminatory rules persist with regard to EU participation in public-private partnerships and concessions. The suspension of State aid control does not appear to be aligned with the objectives of the DCFTA. These irritants have negative impact on EU companies, which wish to invest in Ukraine.

Regarding bilateral financial assistance, since the Russian invasion, the EU, its Member States and the European financial institutions have stepped up their support in a Team Europe approach, mobilising EUR 231.6 billion for Ukraine’s overall economic, social and financial resilience in the form of emergency macro-financial assistance, budget support, emergency assistance, crisis response, humanitarian aid and military assistance as well as support for people fleeing the war.

The Ukraine Facility has been operational since 1 March 2024 and was established with up to EUR 50 billion in stable, predictable and flexible support for the period 2024-2027 by combining budgetary support (Pillar I), investment incentives (Pillar II) and EU accession- related technical assistance (Pillar III). In 2026, the Ukraine Facility was reinforced by EUR 8.35 billion in additional budget support from the Ukraine Support Loan channelled through the Pillar I. Pillar I was further increased by two contributions from Sweden of overall EUR 253 million and is now amounting to EUR 46.9 billion in total. The Ukraine Plan financed under Pillar I is the main instrument for ensuring Ukraine’s recovery, reconstruction and modernisation, while implementing reforms designed to underpin the country’s accession process. As of October 2026, EUR 32.5 billion has been disbursed in the form of budgetary support for the implementation of the Plan. In addition, under Pillar II, EUR 8.5 billion (88% of the total capacity of EUR 9.6 billion) has been allocated in guarantees and blending (EUR 6.8 billion and EUR 1.7 billion, respectively), aiming to leverage over EUR 25.7 billion in

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investments. Furthermore, under Pillar III, the EU has so far mobilised over EUR 848 million in project-based assistance6. With 15 Member States implementing and/or co-financing a total of 19 EU-funded projects worth EUR 370.9 million, Team Europe continues to play a crucial role in delivering EU assistance to Ukraine.

Since the beginning of Russia’s full-scale invasion, the EU and its Member States have mobilised more than EUR 4.8 billion in humanitarian assistance for Ukraine. The Commission alone has made available over EUR 1.4 billion.

Following the commitment by EU leaders in October 2025 to support Ukraine’s most urgent budgetary and defence needs, on 18 December 2025, the European Council agreed to provide a loan to Ukraine of EUR 90 billion for 2026 and 2027, based on EU borrowing on the capital markets backed by the EU’s budget headroom. The loan provides an indicative EUR 30 billion budget support and EUR 60 billion to strengthen Ukraine’s defence capabilities and the procurement of defence products complementing the EU’s military assistance to Ukraine.

EU Member States have also mobilised EUR 77.9 billion in military support for Ukraine, including EUR 6.4 billion under the European Peace Facility.

In parallel, the European Defence Industry Programme (EDIP), adopted in 2025, includes the Ukraine Support Instrument (USI) of EUR 300 million, which strengthens cooperation between the European and Ukrainian defence industries, while the Security Action for Europe (SAFE), established in 2025 with up to EUR 150 billion in loans to Member States, supports joint defence procurement, including with the participation of Ukrainian entities.

Ukraine is associated to 17 Union programmes: Horizon Europe, Euratom Research and Training Programme, Digital Europe, Fiscalis, Customs, Creative Europe, EU4Health, LIFE, Single Market Programme, Union Civil Protection Mechanism, Connecting Europe Facility, Union Anti-Fraud, Justice, Citizens, Equality, Rights and Values, some components of the Space Programme (Copernicus component, Space Weather Events and Near-Earth Objects sub-components of the Space Situational Awareness component), Employment and Social Innovation (EaSI) strand of the European Social Fund+ (ESF+), and European Defence Fund. Ukraine’s financial obligations for its participation in Union programmes have been suspended owing to Russia’s war of aggression.

6 Please note that this amount includes contributions of external assigned revenue received from Member States and third countries as well as a share of the extraordinary revenues generated by the immobilised Russian sovereign assets.

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ANNEX II – STATISTICAL ANNEX

STATISTICAL DATA (as of 14/09/2026)

Ukraine

Basic data Note 2013 2021 2022 2023 2024 2025

Population (thousand) 45 373 i 41 419 iw 40 998 i : : :

Total area of the country (km²) 1) 603 549 w 603 549 w 603 549 w 603 549 w 603 549 w 603 549 w

National accounts Note 2013 2021 2022 2023 2024 2025

Gross domestic product (GDP) (million national currency) 2) 1 465 198 5 450 849 5 239 114 6 627 961 7 662 376 8 931 194

pw

Gross domestic product (GDP) (million euro) 2) 138 021 168 960 154 006 167 632 176 270 189 769 pw

GDP per capita (euro) 2) 3) 3 154 w 4 077 w : : : :

GDP per capita (in purchasing power standards (PPS) : : : : : :

GDP per capita (in PPS), relative to the EU average (EU-27 = 100) : : : : : :

Real GDP growth rate: change on previous year of GDP volume (%) 3) 0.0 3.4 - 28.8 5.5 3.2 :

Employment growth (national accounts data), relative to the previous year (%) 2) 4) 0 iw - 2 iw : : : :

Labour productivity growth: growth in GDP (in volume) per person employed, relative to the

previous year (%)

2) 3) 0 w 6 w : : : :

Unit labour cost growth, relative to the previous year (%) : : : : : :

Nominal unit labour cost index based on persons (3 year % change) : : : : : :

Labour productivity per person employed: GDP (in PPS) per person employed relative to EU

average (EU-27 = 100)

: : : : : :

Gross value added by main sectors

Agriculture, forestry and fisheries (%) 2) 10.0 12.7 9.7 8.6 8.4 :

Industry (%) 2) 23.0 23.7 18.9 19.9 20.0 :

Construction (%) 2) 2.9 3.2 1.5 1.8 2.0 :

Services (%) 2) 64.1 i 60.5 i 69.9 i 69.7 i 69.6 i :

Final consumption expenditure, as a share of GDP (%) 2) 90.7 86.9 104.4 102.8 101.1 :

Gross fixed capital formation, as a share of GDP (%) 2) 16.9 13.2 11.9 19.9 18.5 :

Exports of goods and services, relative to GDP (%) 2) 43.0 40.7 35.4 28.3 29.7 :

Imports of goods and services, relative to GDP (%) 2) 52.2 42.0 52.0 49.2 50.0 :

Gross fixed capital formation by the general government sector, as a percentage of GDP (%) 2) 3) : 3 w : : : :

Business Note 2013 2021 2022 2023 2024 2025

Industrial production volume index (2015 = 100) 2) : 100.0 63.4 67.6 70.7 69.7

Number of active enterprises (number) 2) 1 524 961 w 1 719 536 w 1 532 287 w 1 675 194 w 1 695 178 w :

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Birth rate: number of enterprise births in the reference period (t) divided by the number of

enterprises active in t (%)

2) 5) 9.4 w 9.4 w 7.9 w : : :

Death rate: number of enterprise deaths in the reference period (t) divided by the number of

enterprises active in t (%)

2) 5) 6.9 w 16.1 w 14.8 w : : :

People employed in SMEs as a share of all persons employed (within the non-financial

business economy) (%)

2) 57.1 iw 64.3 iw 63.9 iw 67.0 iw : :

Value added by SMEs (in the non-financial business economy) (EUR million) 2) : 59 859 iw 57 871 iw 60 679 iw : :

Total value added (in the non-financial business economy) (EUR million) 2) 86 782 w 113 149 w 93 313 w 99 288 w 81 643 w :

Inflation rate and house prices Note 2013 2021 2022 2023 2024 2025

Consumer price index (CPI), change relative to the previous year (%) 2) 6) - 0.3 w 9.4 w 20.2 w 12.9 w 6.5 w 12.7 w

Balance of payments Note 2013 2021 2022 2023 2024 2025

Balance of payments: current account total (million euro) 2) 3) - 12 441.3 w - 4 706.9 w 5 935.7 w - 9 971.6 w - 15 532.9 w - 30 255.3 w

Balance of payments current account: trade balance (million euro) 2) - 16 666.7 w - 7 026.2 w - 14 751.1 w - 28 053.1 w - 30 534.9 w - 45 241.5 w

Balance of payments current account: net services (million euro) 2) 3) 4 891.2 w 3 368.9 w - 12 064.4 w - 8 090.3 w - 6 941.5 w - 7 003.5 w

Balance of payments current account: net balance for primary income (million euro) 2) - 2 284.4 w - 4 961.0 w 8 481.6 w 4 676.6 w 482.9 w - 1 589.7 w

Balance of payments current account: net balance for secondary income (million euro) 2) 1 618.6 w 3 911.4 w 24 269.7 w 21 495.2 w 21 460.6 w 23 579.4 w

Net balance for primary and secondary income: of which government transfers (million euro) 2) - 666.6 w - 1 271.2 w 15 756.1 w 11 835.4 w 11 431.9 w 14 304.0 w

*3 year backward moving average of the current account balance relative to GDP (%) 2) - 7.5 iw - 0.4 iw 2.2 iw - 0.7 iw - 2.7 iw :

*Five year change in share of world exports of goods and services (%) 2) : 31.3 w - 22.3 w - 29.5 w : :

Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 2) 3) 3 072.3 w 6 391.6 w 60.6 w 4 037.3 w 3 393.4 w 2 215.4 w

Foreign direct investment (FDI) abroad (million euro) 2) 3) 316.3 w - 171.0 w 336.4 w 28.4 w - 147.6 w 96.5 w

of which FDI of the reporting economy in the EU-27 countries (million euro) 2) 3) 306.8 w - 165.3 w - 102.2 w 13.8 w - 62.0 w 117.2 w

Foreign direct investment (FDI) in the reporting economy (million euro) 2) 3) 3 388.6 w 6 220.6 w 397.0 w 4 065.7 w 3 245.8 w 2 311.9 w

of which FDI of the EU-27 countries in the reporting economy (million euro) 2) 3) 536.4 w 4 609.4 w - 146.2 w 3 242.3 w 2 478.8 w 1 604.0 w

*Net international investment position, relative to GDP (%) 2) 3) - 35.1 w - 18.4 w - 12.9 w - 22.0 w - 21.9 w - 33.5 w

Year on year rate of change in gross inflow of remittances (in national currency) from migrant

workers (%)

2) 0.8 iw 1.0 iw 1.0 iw 1.0 iw : :

Public finance Note 2013 2021 2022 2023 2024 2025

General government deficit / surplus, relative to GDP (%) 2) 7) - 4.1 w - 3.3 w - 15.6 w - 19.5 w - 17.7 w - 17.6 pw

General government gross debt relative to GDP (%) 2) 8) 38.4 w 49.0 w 77.8 w 83.3 w 91.1 w 101.2 w

Total government revenues, as a percentage of GDP (%) 2) 7) 41.7 w 37.0 w 49.8 w 54.0 w 54.0 w 56.5 pw

Total government expenditure, as a percentage of GDP (%) 2) 7) 45.8 w 40.3 w 65.4 w 73.5 w 71.6 w 74.1 pw

Financial indicators Note 2013 2021 2022 2023 2024 2025

Gross external debt of the whole economy, relative to GDP (%) 2) 9) 71.7 iw 67.8 iw 79.7 iw 86.8 iw : :

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Gross external debt of the whole economy, relative to total exports (%) 2) 3)

9)

167.1 w 164.6 w 225.6 w 303.8 w 330.5 w 419.5 w

Money supply: M1 (banknotes, coins, overnight deposits, million euro) 34 761.6 w 41 433.7 w 40 342.0 w 44 143.0 w 48 473.6 w 50 634.4 w

Total credit by monetary financial institutions to residents (consolidated) (million euro) : : : : : :

*Annual change in financial sector liabilities (%) : : : : : :

*Private debt, consolidated, relative to GDP (%) : : : : : :

Interest rates: day-to-day money rate, per annum (%) 3.79 w 6.78 w 11.11 w 12.29 w 5.24 w 6.18 w

Euro exchange rates: average of period (1 euro = … national currency) 10.616 32.261 34.019 39.539 43.469 47.093

Trade-weighted effective exchange rate index, 42 countries (2015 = 100) 142.6 w 91.5 w 88.5 w 78.5 w 73.4 w 69.6 w

*3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries

(2015 = 100)

0.1 iw 0.1 iw - 0.1 iw - 0.2 iw - 0.2 iw - 0.2 iw

Value of reserve assets (including gold) (million euro) 2) 9) 14 779.2 w 27 294.4 w 26 751.2 w 36 459.0 w 41 913.1 w 48 717.9 w

External trade in goods Note 2013 2021 2022 2023 2024 2025

Value of imports: all goods, all partners (million euro) 2) 57 100 iw 61 824 w 52 595 w 63 764 w 70 771 w :

Value of exports: all goods, all partners (million euro) 2) 46 914 iw 57 718 w 41 752 w 34 758 iw 38 556 iw :

Trade balance: all goods, all partners (million euro) 2) - 10 187 iw - 4 106 iw - 10 843 iw - 29 005 iw - 32 214 iw :

Terms of trade (export price index / import price index * 100) (number) 99.7 iw 118.9 iw 78.8 iw 79.9 iw 95.4 iw :

Share of exports to EU-27 countries in value of total exports (%) 2) 25.7 iw 39.3 iw 63.6 iw 71.1 iw 64.4 iw :

Share of imports from EU-27 countries in value of total imports (%) 2) 33.8 iw 39.7 iw 49.1 iw 51.2 iw 50.5 iw :

Demography Note 2013 2021 2022 2023 2024 2025

Crude rate of natural change of population (natural growth rate): number of births minus

deaths (per thousand inhabitants)

- 3.5 : : : : :

Infant mortality rate deaths of children under one year of age (per thousand live births) 8.0 7.2 : : : :

Life expectancy at birth: male (years) : : : : : :

Life expectancy at birth: female (years) : : : : : :

Labour market Note 2013 2021 2022 2023 2024 2025

Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that

is economically active (%)

2) 3) 72.5 w 71.9 w : : : :

Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are

in employment (%)

2) 3) 67.4 w 64.8 w : : : :

Male employment rate for persons aged 20–64 (%) 2) 3) 73.3 w 70.8 w : : : :

Female employment rate for persons aged 20–64 (%) 2) 3) 62.0 w 59.3 w : : : :

Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are

in employment (%)

2) 3) 40.8 w 41.1 w : : : :

Employment by main sectors

Agriculture, forestry and fisheries (%) 2) 3) 20.0 w 14.1 w : : : :

110

Industry (%) 2) 3) 18.7 w 18.2 w : : : :

Construction (%) 2) 3) 6.1 w 7.0 w : : : :

Services (%) 2) 3) 55.2 w 60.7 w : : : :

People employed in the public sector as a share of total employment, persons aged 20–64

(%)

: : : : : :

People employed in the private sector as a share of total employment, persons aged 20–64

(%)

: : : : : :

Unemployment rate: proportion of the labour force that is unemployed (%) 2) 3) 7.2 w 9.8 w : : : :

Male unemployment rate (%) 2) 3) 8.0 w 9.5 w : : : :

Female unemployment rate (%) 2) 3) 6.2 w 10.1 w : : : :

Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 2) 3) 17.4 w 19.1 w : : : :

Long-term unemployment rate: proportion of the labour force that has been unemployed for

12 months or more (%)

2) 3) 1.5 w 2.4 w : : : :

Unemployment rate for persons (aged 25–64) having completed at most lower secondary

education (ISCED levels 0-2) (%)

2) 3) 7.6 w 15.3 w : : : :

Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED

levels 5-8) (%)

2) 3) 5.6 w 8.5 w : : : :

Social cohesion Note 2013 2021 2022 2023 2024 2025

Average nominal monthly wages and salaries (national currency) 2) 3)

10)

3 265 w 14 014 w 14 847 w 17 442 w 21 473 w 25 946 w

Index of real wages and salaries (index of nominal wages and salaries divided by the

inflation index) (2016 = 100)

3)

10)

: 117 w : : : :

Gini coefficient 2) 3)

5)

24 w 24 w : : : :

Poverty gap 2) 3) 20.9 w 21.7 w : : : :

Standard of living Note 2013 2021 2022 2023 2024 2025

Number of passenger cars relative to population size (number per thousand population) : : : : : :

Infrastructure Note 2013 2021 2022 2023 2024 2025

Density of railway network (lines in operation per thousand km²) 1) 35.8 iw 32.7 iw 32.8 iw 32.7 iw : :

Length of motorways (kilometres) 2) : 15 15 15 : :

Education, Innovation and Research Note 2013 2021 2022 2023 2024 2025

Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8) 2) 3) 53.0 w 58.0 w : : : :

Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8),

males

2) 3) 46.5 w 51.4 w : : : :

Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8),

females

2) 3) 59.7 w 64.8 w : : : :

111

Participation in early childhood education (children aged 3 and over) 2) 84.4 w 85.8 w 88.5 w 87.1 w 87.1 w :

Participation in early childhood education (children aged 3 and over), males 2) 84.4 w 86.0 w 88.7 w 87.3 w 87.3 w :

Participation in early childhood education (children aged 3 and over), females 2) 84.5 w 85.6 w 88.4 w 86.9 w 86.0 w :

Low achieving 15-year-olds in reading (%) 2) : : 41.0 w : : :

Low achieving 15-year-olds in mathematics (%) 2) : : 42.4 w : : :

Low achieving 15-year-olds in science (%) 2) : : 34.0 w : : :

Early leavers from education and training: proportion of persons aged 18-24 with at most

lower secondary education (at most ISCED 2011 level 2) who are not in further education or

training

: : : : : :

Early leavers from education and training: proportion of men aged 18-24 with at most lower

secondary education (at most ISCED 2011 level 2) who are not in further education or

training

: : : : : :

Early leavers from education and training: proportion of women aged 18-24 with at most

lower secondary education (at most ISCED 2011 level 2) who are not in further education or

training

: : : : : :

Proportion of persons aged 25-64 having participated in education and training (last 4

weeks)

2) : 0.5 w : : : :

Proportion of persons aged 25-64 having participated in education and training (last 4

weeks), men

2) : 0.5 w : : : :

Proportion of persons aged 25-64 having participated in education and training (last 4

weeks), women

2) : 0.4 w : : : :

Exposure of vocational education and training (VET) graduates to work-based learning (% of

population aged 20-34)

: : : : : :

Share of individuals having at least basic digital skills (% of population aged 16-74) : : : : : :

Share of individuals having at least basic digital skills (% of population aged 16-74), males : : : : : :

Share of individuals having at least basic digital skills (% of population aged 16-74), females : : : : : :

Public expenditure on education relative to GDP (%) 2) 6.4 iw 5.1 iw : : : :

Gross domestic expenditure on R&D relative to GDP (%) 2) 0.73 iw 0.38 iw 0.33 iw 0.32 iw : :

Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP

(%)

2)

11)

0.32 w 0.16 w 0.21 w 0.12 w 0.10 w :

Percentage of households who have internet access at home (%) 2) 3)

12)

41.6 w 82.7 w : : : :

Environment Note 2013 2021 2022 2023 2024 2025

Index of greenhouse gas emissions, CO2 equivalent (1990 = 100) 45.6 ew 35.8 ew 24.4 ew 19.7 ew : :

Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant

prices)

2) 203.0 dw : : : : :

Electricity generated from renewable sources relative to gross electricity consumption (%) 8.9 ew 10.6 w : : : :

Road share of inland freight transport (based on tonne-km) (%) 2) 3) 33.6 w 39.3 w 47.6 w 49.9 w 55.3 w 59.0 w

112

Energy Note 2013 2021 2022 2023 2024 2025

Primary production of all energy products (thousand TOE) 83 964 : : : : :

Primary production of crude oil (thousand TOE) 3 167 : : : : :

Primary production of solid fuels (thousand TOE) 38 213 : : : : :

Primary production of gas (thousand TOE) 16 032 : : : : :

Net imports of all energy products (thousand TOE) 31 400 i : : : : :

Gross inland energy consumption (thousand TOE) 116 383 : : : : :

Gross electricity generation (GWh) 194 377 : : : : :

Agriculture Note 2013 2021 2022 2023 2024 2025

Agricultural output volume index (at producer prices) (2015 = 100) 2) 102.7 w 119.4 w 89.2 w 99.1 w 92.9 w 86.0 w

Utilised agricultural area (thousand hectares) 1) 41 282.8 w 41 144.2 w 41 144.2 w 41 144.2 w 41 144.2 w 41 144.2 w

Livestock numbers: live bovine animals (thousand heads, end of period) : : : : : 1 804.1

Livestock numbers: live swine (thousand heads, end of period) : : : : : 4 642.4

Livestock numbers: live sheep and live goats (thousand heads, end of period) : : : : : 761.1 i

Raw milk available on farms (thousand tonnes) 2) 11 488.2 w 8 713.9 w 7 762.7 w 7 441.1 w 7 248.6 w 6 856.8 w

Harvested crop production: cereals (including rice) (thousand tonnes) 2) 62 679.8 iw 85 329.9 iw 53 529.6 iw 59 311.7 iw 55 648.3 iw :

Harvested crop production: sugar beet (thousand tonnes) 2) 10 789.0 w 10 853.9 w 9 941.5 w 13 175.8 w 12 798.2 w 11 689.3 w

Harvested crop production: vegetables (thousand tonnes) 2) 10 026.7 w 10 038.3 w 7 579.4 w 8 356.0 w 8 093.9 w 8 230.9 w

Source: Eurostat and/or the statistical authorities in Ukraine

: = not available d = definition differs e = estimated p = provisional i = Eurostat estimate w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any

assurance as regards their quality and adherence to EU statistical methodology * = Macroeconomic Imbalance Procedure (MIP) indicator

Footnotes:

1) Data of the State Service of Ukraine for Geodesy, Cartography and Cadastre and according to the new Classification of Land

Types.

2) Since 2014, data for Ukraine generally exclude the illegally annexed Autonomous Republic of Crimea and the City of

Sevastopol and the territories which are not under control of the Ukrainian government.

3) Data on Ukraine from the year 2022 onward is limited due to exemption under the martial law from mandatory data submission

to the State Statistics Service of Ukraine, effective as of 3 March 2022, following Russia's war of aggression against Ukraine.

4) Persons aged 15 years and over.

113

5) Excluding data on individual entrepreneurs.

6) Consumer price inflation

7) Cash data (Government finance statistics manual 2014, IMF).

8) State and state guaranteed debt.

9) Assets and debt converted from US dollars to euro using cross rates at the end of the reporting year.

10) Data refer to enterprises and their independent divisions with 10 or more employees.

11) The share of R&D expenditure from the government budget in GDP.

12) Share of persons who used the internet at home.

EN EN

EUROPEAN COMMISSION

Brussels, 4.11.2026 SWD(2026) 690 final

COMMISSION STAFF WORKING DOCUMENT

Albania 2026 Report

Accompanying the document

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

2026 Communication on EU enlargement policy

{COM(2026) 690 final} - {SWD(2026) 691 final} - {SWD(2026) 692 final} -

{SWD(2026) 693 final} - {SWD(2026) 694 final} - {SWD(2026) 695 final} - {SWD(2026) 696 final} - {SWD(2026) 697 final} - {SWD(2026) 698 final} -

{SWD(2026) 699 final} - {SWD(2026) 700 final}

1

Table of contents

1. Introduction ........................................................................................................................................ 3

1.1. Context ......................................................................................................................................... 3

1.2. Main findings of the report .......................................................................................................... 3

1.3. STATE OF PLAY OF ACCESSION NEGOTIATIONS ......................................................................... 21

2. Cluster 1: The fundamentals of the accession process ..................................................................... 22

2.1. Functioning of democratic institutions and public administration reform ............................... 22

2.1.1 Democracy ........................................................................................................................... 22

2.1.2. Public administration reform .............................................................................................. 25

2.2. Rule of law and fundamental rights ........................................................................................... 28

2.2.1. Chapter 23: Judiciary and fundamental rights ................................................................ 28

2.2.2. Chapter 24: Justice, freedom and security ..................................................................... 47

2.3. Economic criteria ....................................................................................................................... 58

2.3.1. The existence of a functioning market economy ................................................................ 58

2.3.2. The capacity to cope with competitive pressure and market forces within the EU ........... 63

2.4 Public procurement, statistics, financial control ........................................................................ 65

Chapter 5: Public procurement ..................................................................................................... 65

Chapter 18: Statistics .................................................................................................................... 67

Chapter 32: Financial control ........................................................................................................ 68

3. Good neighbourly relations and regional cooperation ..................................................................... 69

4. Resilience, security, defence ............................................................................................................. 71

5. Ability to assume the obligations of membership ............................................................................ 73

Cluster 2: Internal market ................................................................................................................. 73

Chapter 1: Free movement of goods ............................................................................................ 73

Chapter 2: Freedom of movement for workers ............................................................................ 74

Chapter 3: Right of establishment and freedom to provide services ........................................... 74

Chapter 4: Free movement of capital ........................................................................................... 75

Chapter 6: Company law ............................................................................................................... 76

Chapter 7: Intellectual property law ............................................................................................. 76

Chapter 8: Competition policy ...................................................................................................... 77

Chapter 9: Financial services ......................................................................................................... 77

Chapter 28: Consumer and health protection .............................................................................. 78

Cluster 3: Competitiveness and inclusive growth ............................................................................. 80

Chapter 10: Digital transformation and media ............................................................................. 80

Chapter 16: Taxation ..................................................................................................................... 82

2

Chapter 17: Economic and monetary policy ................................................................................. 83

Chapter 19: Social policy and employment .................................................................................. 84

Chapter 20: Enterprise and industrial policy ................................................................................ 85

Chapter 25: Science and research ................................................................................................. 86

Chapter 26: Education and culture ............................................................................................... 87

Chapter 29: Customs union .......................................................................................................... 88

Cluster 4: The green agenda and sustainable connectivity .............................................................. 89

Chapter 14: Transport policy ........................................................................................................ 90

Chapter 15: Energy ........................................................................................................................ 92

Chapter 21: Trans-European networks ......................................................................................... 93

Chapter 27: Environment and climate change ............................................................................. 94

Cluster 5: Resources, agriculture and cohesion ................................................................................ 97

Chapter 11: Agriculture and rural development ........................................................................... 97

Chapter 12: Food safety, veterinary and phytosanitary policy ..................................................... 98

Chapter 13: Fisheries and aquaculture ......................................................................................... 99

Chapter 22: Regional policy and coordination of structural instruments .................................. 100

Chapter 33: Financial and budgetary provisions ........................................................................ 101

Cluster 6: External relations ............................................................................................................ 102

Chapter 30: External relations .................................................................................................... 102

Chapter 31: Foreign, security and defence policy ...................................................................... 103

Annex I – Relations between the EU and Albania ........................................................................... 106

Annex II: Statistical annex ............................................................................................................... 108

3

1. INTRODUCTION1

1.1. CONTEXT

During the reporting period, Albania opened the final remaining cluster of negotiations, met the interim benchmarks under cluster 1 - fundamentals and provisionally closed four chapters. Albania continued to implement the Stabilisation and Association Agreement, and meetings of the joint bodies under the agreement took place.

The Albanian authorities maintained their firm commitment to the strategic goal of EU integration as the country’s key priority, with the aim of closing all chapters of negotiations by the end of 2027. Keeping up the momentum will require swift delivery on high quality EU- related reforms.

The largest civic mobilisation since Albania’s democratic transition has been taking place in Tirana since May 2026 with daily protests which started in opposition to the planned development of a luxury tourism resort in the protected area of Pishë Poro – Narta. Building on the civic movement, student-led protests were organised in October 2026, during which violent incidents took place.

Albania has actively engaged and started delivering on the implementation of the new Growth Plan for the Western Balkans across the four pillars. Under the Reform and Growth Facility (RGF), a performance-based EU instrument supporting the EU accession process, the plan is in line with the country’s reform agenda, which was adopted in late 2024. Up to over EUR 920 million in grants and loans is available to Albania under the RGF by the end of this period. Thus far the Commission concluded that Albania has completed 33 of the 66 steps due until December 2025. Albania also made significant progress on most other steps.

The Commission’s 2026 rule of law report2 covered Albania for the third time.

1.2. MAIN FINDINGS OF THE REPORT

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION

Democracy

The legal and institutional framework regarding elections is generally adequate. However, several longstanding recommendations from the Organization for Security and Co-operation in Europe (OSCE) / Office for Democratic Institutions and Human Rights (ODIHR) and the Venice Commission remain unaddressed. A comprehensive electoral reform is urgently needed, in particular ahead of the 2027 municipal elections.

Daily protests have been taking place since May 2026. The protests were triggered by environmental concerns around construction works in the protected landscape of Pishë Poro – Narta and developed into a broader movement calling for transparency, accountability, anti-corruption efforts and good governance. This is the largest civic mobilisation in Albania since the country’s democratic transition, with tens of thousands of participants joining the protest at its peak. Building on the civic movement, student-led protests took place in

1 This report covers the period from 1 September 2025 to 1 September 2026. It is based on input from a variety of

sources, including contributions from the government of Albania, EU Member States, European Parliament reports and information from various international and non-governmental organisations. It also includes the results of comparative assessments and indices produced by other stakeholders, in particular in the area of rule of law.

The report uses the following assessment scale to describe the state of play: early stage, some level of preparation, moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting period, it uses the following scale: backsliding, no progress, limited progress, some progress, good progress and very good progress. Where appropriate, interim steps have also been used. 2 SWD(2026) 928 final

4

October 2026, during which violent incidents occurred between protestors and the Albanian State Police. No dialogue has taken place so far. All sides should make genuine attempts to engage in constructive dialogue.

Parliament can exercise its powers, including control of the executive and involvement in the legislative process, in a partially effective way. The lack of genuine political dialogue and public consultation activities as well as clashes between the ruling majority and the opposition continued to limit its effectiveness. Parliament further failed to implement some Constitutional Court rulings. The adoption by consensus of amended rules of procedure was a positive development. However, the frequent tabling of legislative initiatives by the Council of Ministers, the systematic rejection of the opposition’s requests to set up inquiry committees, and the politicisation of appointments to constitutional bodies or independent institutions all contributed to limiting Parliament’s oversight of the government.

Albania’s bodies in charge of EU integration are in place. However, expertise on EU processes, planning and interinstitutional coordination must increase to make the process more inclusive, reflect cross-party consensus and involve civil society. Communication efforts on EU integration by the government increased but are still too fragmented. The implementation of the rule of law, functioning of democratic institutions and the public administration reform roadmaps continued and will be monitored under Cluster 1’s horizontal benchmark.

The government continued to show its commitment to EU integration. A substantial government reshuffle took place in February 2026, and further changes were announced in September 2026.

Civil society, including human rights defenders, operate in a partly enabling environment, despite continued negative narratives. Civil society organisations (CSOs) and human rights defenders working on gender and LGBTIQ+ rights were particularly targeted.

Public administration reform

Albania remains moderately prepared on public administration reform. Some progress was made, especially with the adoption of the amendments to the Law on the organisation and functioning of the State Administration. However, the government continued to adopt budget revisions through normative acts, without parliamentary scrutiny. Public consultations were not conducted efficiently on a regular basis or followed by appropriate follow-up actions.

The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Albania should in particular:

→ improve the quality of Regulatory Impact Assessments (RIAs) and the efficiency of public consultation processes and extend their use to implementing legislation, especially where implementing legislation addresses key substantive elements of the regulatory framework;

→ improve fiscal discipline as well as budgetary oversight by limiting the use of normative acts by the executive for budget revisions, and reinstituting regular budget revision processes;

→ adopt and implement a new legislative framework for the civil service, which includes revised rules on merit-based recruitment, promotion and dismissal in the civil service law at all levels, especially senior level, and begin automating the payroll system again; prepare the implementing legislation and start implementing the new legislative framework for the organisation and functioning of the state administration.

Chapter 23: Judiciary and fundamental rights

5

Albania is between a moderate and a good level of preparation in the area of judiciary and fundamental rights and has made good progress during the reporting period.

Functioning of the judiciary

Albaniais between a moderate and a good level of preparation and has made good progress on the functioning of the judiciary. Albania continued to implement the 2016 justice reform. The vetting process for all judges and prosecutors was fully completed following the finalisation of the appeal phase, further strengthening independence accountability and integrity in the justice sector. Rules on the appointment of non-magistrate members to the High Judicial Council (HJC) and High Prosecutorial Council (HPC) were aligned with those applicable to magistrate members regarding asset and background verifications. The new Chief Special Prosecutor at the Special Prosecution’s Office was appointed through a competitive and transparent process. Challenges remain in conducting timely and qualitative evaluations of magistrates.

The lack of human resources, including magistrates as well as legal and administrative support staff, continues to affect the quality of justice. Attempts by public officials or politicians to exert undue influence on the judicial system, including on SPAK, and personal attacks on magistrates continued during the reporting period. While the backlog of cases has been partly reduced, pressing issues on judicial efficiency, quality and integrity – including court infrastructure, security and the delayed establishment of an electronic case management system – remain to be addressed.

The Commission’s recommendations from last year were partially implemented and some remain valid. In the coming year, Albania should in particular:

→ further strengthen accountability and reduce political interference on the judiciary and prosecution services, including by enhancing whistleblower protection within judicial structures, ensuring merit-based and transparent appointments, promotions, evaluations and inspections, in line with the high standards set by the vetting process, and filling magistrate-inspector vacancies at the High Justice Inspectorate;

→ improve the quality of justice, in particular by continuing to fill vacancies and ensuring enough administrative court staff at all levels of the judiciary, increasing the total number of magistrates and legal advisers towards the EU average, and finalising the revision of the initial and continuous training curricula and entrance examination for the School of Magistrates and improving the school’s capacity to deliver judicial training;

→ improve judicial efficiency, including by adopting further measures to increase efficiency at all levels, and further reduce backlog, in line with the Roadmap for Judicial Efficiency, the principles of justice reform and European standards, ensuring the swift implementation of the integrated case management system and expanding the online notification system to all courts of general jurisdiction.

Fight against corruption

Albania is between a moderate and a good level of preparation and has shown good progress overall. The 2024-2030 Anti-Corruption Strategy and its 2024-2026 action plan are being implemented. The Specialised Structure Against Organised Crime and Corruption (SPAK) has continued to demonstrate independence and deliver positive results in fighting high-level corruption, making tangible progress towards a solid track record in the fight against corruption. However, corruption remains a real challenge. Legislation to prevent corruption was further aligned with European standards, including on conflicts of interest and lobbying. Further alignment was achieved on whistleblower protection. Sector-based corruption risk assessments have been initiated and high-level asset declarations published. The actual impact of these and other preventive measures on corruption remains to be demonstrated, considering ongoing high-level corruption investigations.

6

The Commission’s recommendations from last year were partially implemented and some remain valid. In the coming year, Albania should in particular:

→ further strengthen and consolidate the track record of investigation, prosecution and adjudication of corruption cases and secure more final convictions, in particular in high- profile cases. This includes the seizure and final confiscation of criminal assets resulting from corruption-related offences, as well as significantly increasing proactive referrals by relevant state institutions and law enforcement agencies to the Special Prosecution Office (SPO) and General Prosecution Office (GPO);

→ further consolidate the corruption prevention framework by: implementing and monitoring the newly adopted legislative measures; strengthening institutional capacity and engagement in implementing the anti-corruption strategy and legislation; expanding corruption risk assessments in vulnerable sectors, as well as central and local level integrity plans, and implementing their findings; enhancing asset declaration verification by all relevant bodies including the High Inspectorate of Declaration and Audit of Assets and Conflicts of interest (HIDAACI);

→ Strengthen measures to improve the accountability and integrity of the Albanian State Police and the Police Oversight Agency and ensure independence and stability of its leadership.

Fundamental rights

Albania’s legal framework sets out a generally good basis for the protection of fundamental rights. Progress was made with the adoption of the new gender equality and alternative care laws, amendments to the Law on the prevention and protection from violence against women and domestic violence, the remaining pieces of implementing legislation to the Law on personal data protection. Amendments to the Law on protection from discrimination, were also adopted, although full alignment with the acquis is still expected. The pace of progress in advancing prison reform has not matched the ambition required and the conditions within correctional institutions continue to warrant careful attention. The enjoyment of the right to property and of the rights of persons belonging to minorities need to improve. An overall increase in implementation efforts is needed.

The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Albania should in particular:

→ further ensure effective implementation of the legal framework on the rights of persons belonging to minorities and further increase the capacity and resources of the State Committee on National Minorities and of local authorities;

→ further secure the right to property by concluding first-time land registrations and digitisation of ownership titles and cadastral maps; improving systematically the quality and accuracy of cadastral data; further enhancing integrity, transparency, and effectiveness in delivering cadastral services; accelerating judicial cases for determining land ownerships, and finalising the process of compensations for properties confiscated during the communist regime;

→ implement the recommendations of international monitoring bodies, including of the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT); ensure effective implementation of the Law on personal data protection, of the Law on gender equality, including ensuring service delivery to all victims of violence, and of all action plans by ensuring adequate financial and human resources capacities including of the Information and Data Protection Commissioner’s Office; ensure full alignment and effective implementation of the EU acquis on the rights of victims of crime and on procedural rights of suspects and accused persons; and make

7

decisive progress towards full deinstitutionalisation of children, including those with disabilities.

Freedom of expression and media freedom

Albania is between having some and a moderate level of preparation in the area of freedom of expression and made some progress during the reporting period, especially as regards aligning its legislative framework with the EU acquis and European standards. Albania provides insufficient legal guarantees on the freedom of expression while the enabling environment needs to improve for media to operate freely, independently and professionally. Albania exempted registered journalists from criminal provisions on defamation under certain conditions, though full decriminalisation of defamation is yet to be achieved. Media independence and pluralism continue to be affected by economic penetration of the media market by business groups with political links and the overlap of political, business and other interests, the lack of transparency of financing sources, a high concentration of media ownership, as well as intimidation and smear campaigns, strategic lawsuits against public participation (SLAPPs), and the precarious working conditions for journalists. Concerns continued to be voiced about political influence impacting appointments of both the media regulatory authority and the public broadcaster.

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Albania should in particular:

→ adopt further reforms of the legal and regulatory framework through an inclusive and transparent process to: (i) fully implement measures to ensure transparency of media ownership, strengthen media plurality and editorial independence; (ii) strengthen transparency of media financing from private and state resources; (iii) strengthen the autonomy of the media regulator and the independence of the state broadcaster; (iv) fully repeal criminal provisions on insult and defamation; (v) align civil aspects of defamation with European standards; and (vi) further ensure fair and transparent allocation of state advertising and strengthen access to public information;

→ further ensure zero tolerance for intimidation, threats and smear campaigns, and provide effective protections against strategic lawsuits against public participation (SLAPP) and enforcement in cases of attacks against journalists, including judicial follow-up; further increase capacities for law enforcement bodies to handle cases of violence, including on the margins of protests, and other criminal cases involving journalists, notably by ensuring high human rights compliance in handling incidents involving journalists, through binding instructions, disciplinary, administrative and/or judicial procedures, data collection and capacity building measures;

→ improve Albanian journalists’ working conditions, in particular by strengthening the protection of journalists’ employment and social rights and ensuring that the Labour Code is applied consistently.

Chapter 24: Justice, freedom and security

Albania is between a moderate and a good level of preparation in this area and has made good progress. In particular, the asset recovery office has gradually become operational. Both the national early warning system on new psychoactive substances and the national drugs observatory increased their level of operationality, but challenges remain in terms of capacity and resources. Albania continued to implement its migration strategy, which is aligned with EU priorities, adopted a national contingency plan and established a temporary reception centre for unaccompanied minors. Albania also adopted a Schengen Action Plan.

The Commission’s recommendations from last year were partially implemented and therefore remain mostly valid. In the coming year, Albania should in particular:

8

→ further develop the systematic use of financial investigations when dealing with serious and organised crime, including illicit trafficking, terrorism and money laundering;

→ ensure that the national drugs observatory and the national early warning system on the detection of new psychoactive substances become fully and sustainably operational, including through cooperation with the EU Drugs Agency; and adopt a comprehensive drugs strategy, containing both health and law enforcement/security aspects, and a related action plan;

→ further improve the asylum referral system and access to asylum procedures; improve the protection of unaccompanied minors by strengthening legal and policy safeguards and establishing permanent separate reception facilities for them in line with EU standards; continue to address the issue of unfounded asylum applications of Albanian nationals in Schengen and associated countries; and fully implement its roadmap to ensure visa policy alignment with the EU list of visa-required countries outside the EU.

Fight against serious and organised crime

Albania is between a moderate and a good level of preparation and has made good progress. The capacity and effectiveness of the prosecution system (both specialised and general, including at district level) to investigate criminal groups and its use of financial investigations continued to develop. The fight against money laundering and the seizure of assets linked to organised crime were strengthened. SPAK has also further consolidated cooperation with its international counterparts, in particular with EU Member States and EU agencies, to investigate high-risk criminal groups with initial tangible results. Albania reinforced its capacities and cooperation with Member States on cybercrime. Albania also adopted amendments to its Criminal Code, further aligning with the EU acquis on the criminalisation of money laundering, trafficking in human beings, online and offline child sexual abuse and exploitation, as well as drug trafficking and combating terrorism.

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Albania should in particular:

→ establish a solid track record of investigations, prosecutions and final convictions in all fields of serious and organised crime, including drug trafficking, money laundering and terrorist financing through continued international cooperation, reinforced domestic inter- agency cooperation and methodologies to tackle complex criminal cases, and improved criminal and financial analysis capacity, while ensuring comprehensive alignment with the EU acquis;

→ improve the efficiency of the asset recovery and management system by strengthening operational cooperation of the asset recovery office notably with asset recovery offices in EU Member States, by improving the use of legal instruments to confiscate proceeds of crime and property derived from criminal activities, and by better managing frozen and confiscated property also for social reuse;

→ prioritise the reinforcement of the district prosecution offices by investing in human and technical resources; guaranteeing access to relevant databases and information systems and streamlining inter-agency cooperation to enable joint investigative task forces.

ECONOMIC CRITERIA

The existence of a functioning market economy

Albania has a good level of preparation in developing a functioning market economy and made some progress in this area. The economy maintained strong growth momentum in 2025 thanks to robust domestic demand and tourism. Sustained growth in tourism helped bring down the current account deficit to a historic low in 2025. Inflation remained below the

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central bank's target amid the continued appreciation of the lek. The fiscal deficit widened but stayed below target, and the public debt ratio continued to decline. Despite recent increases, government revenue as a share of GDP remains low, while spending on public investment is repeatedly under-executed. The labour market situation continued to improve, but structural problems, such as emigration, persist. The banking sector remained sound, while lending to the private sector increased. The business environment remains affected by a weak rule of law, limited access to finance for small- and medium-sized enterprises, and shortcomings in the oversight and governance of state-owned enterprises.

The Commission’s recommendations from last year were partly addressed and remain largely valid. In the coming year, Albania should in particular:

→ advance the implementation of the Medium-Term Revenue Strategy, finalise the fiscal cadastre and accelerate the adoption of the property tax law;

→ strengthen fiscal risk management and transparency, including regarding risks arising from state-owned enterprises, public-private partnerships, population ageing and climate change;

→ ensure the effective functioning of the National Single Project Pipeline, including the integration of public-private partnerships, and reinforce project appraisal and prioritisation to ensure effective implementation of public investment projects.

The capacity to cope with competitive pressure and market forces within the EU

Albania has between some and a moderate level of preparation to cope with competitive pressure and market forces within the EU and made some progress in this area. Despite efforts to reduce barriers in accessing education for children with disabilities and those from disadvantaged backgrounds, the education system still faces numerous challenges. Skills gaps persist, and the youth NEET rate (those not in education, employment or training) remains a concern. Transport and digital infrastructure improved, but infrastructure gaps persist. Albania continues to benefit from strong tourism growth, but industry and agriculture remain low-productivity sectors that have been contracting. Manufacturing exports fell for the third consecutive year, reflecting weak external demand, lek appreciation and businesses' limited pricing power.

The Commission’s recommendations from last year were partially implemented and therefore remain mostly valid. In the coming year, Albania should in particular:

→ expand and improve the dual VET system to increase the number of graduates and better align skills with labour market needs, while improving the quality of the broader education system;

→ implement the plan to increase public research and development (R&D) expenditure towards the 2030 target of 1% of GDP and strengthen links between businesses and research institutions to develop a more dynamic innovation ecosystem;

→ accelerate the implementation of transport and energy infrastructure projects.

Chapter 5: Public procurement

Albania has between a moderate and a good level of preparation in public procurement. Some progress was made during the reporting period, especially through the adoption of the law on concessions and public private partnerships (PPPs) aligning the legal framework in this area with the EU acquis.

The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Albania should in particular:

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→ continue efforts to improve competitive procurement procedures and ensure integrity of the procurement function;

→ complete outstanding alignment gaps in the legislative framework with the EU acquis in the areas of public procurement and defence and security procurement;

→ ensure compliance with the EU acquis and the Stabilisation and Association Agreement (SAA) on intergovernmental agreements and lex specialis concluded with non-EU countries on public procurement.

Chapter 18: Statistics

Albania is moderately prepared in the area of statistics. Some progress was made in improving the compilation of macroeconomic statistics in line with the European System of National and Regional Accounts (ESA 2010).

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Albania should in particular:

→ continue increasing the production and dissemination of timely and high-quality data in accordance with the EU acquis in statistics especially in the areas covered by the closing benchmarks;

→ conduct the agricultural census in line with the relevant EU acquis;

→ ensure adequate staffing at the Institute for Statistics (INSTAT) as well as progress on supporting IT systems and data security.

Chapter 32: Financial control

Albania is moderately prepared in the area of financial control. Some progress was made by re-establishing the subcommittee on Public Audit as a mechanism for parliamentary scrutiny over external audit matters.

The Commission’s recommendations from last year were partially implemented and remain mostly valid. In the coming year, Albania should in particular:

→ enhance the delegation of financial and management responsibilities, notably by entrusting routine administrative approvals to lower levels, clarifying accountability lines and ensuring that no subordinate unit is accountable to more than one superior unit, upgrade irregularity and fraud management;

→ ensure parliamentary scrutiny through the subcommittee on Public Audit, which has to systematically and effectively conduct hearings, issue recommendations for follow-up and monitor their implementation, with the aim of increasing their level of implementation;

→ fully align with the PIF Directive, strengthen controls and consolidate capacities to protect the EU’s financial interests, ensure appropriate reporting of irregularities and continue implementing both the anti-fraud strategy and action plans agreed with the European Commission to follow up investigations.

CLUSTER 2: INTERNAL MARKET

Chapter 1: Free movement of goods

Albania has between some and a moderate level of preparation on free movement of goods. No progress on alignment with the EU acquis was achieved in the reporting period.

The Commission’s recommendations from last year were not fully implemented and remain valid. In the coming year, Albania should in particular:

→ complete the alignment of its legislation with the relevant EU acquis on quality

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infrastructure, i.e. accreditation, conformity assessment and market surveillance;

→ significantly strengthen the enforcement capacity of the market surveillance inspectorate;

→ finalise and adopt an Action Plan to comply with Articles 34-36 of the Treaty on the Functioning of the European Union (TFEU), fully covering the non-harmonised area, with a timeframe for screening all legislation and practices, introducing mutual recognition clauses, and repealing or amending legislation and practices as necessary.

Chapter 2: Freedom of movement for workers

Albania is moderately prepared on freedom of movement for workers. Some progress was achieved by negotiating and concluding further bilateral agreements on social security coordination with EU Member States and further advancing the preparations to connect Albania’s employment services system to the European network of employment services (EURES).

The Commission’s recommendations from last year were partially implemented and therefore remain mostly valid. In the coming year, Albania should in particular:

→ continue alignment of national legislation with the EU acquis on free movement of workers, including access for EU citizens to the labour market and equal treatment of EU workers; continue the enforcement of the Law on foreigners as per the 2024-2030 National Migration Strategy and start the preparation of its new action plan;

→ continue developing the employment service’s IT system, allowing its connection to EURES upon accession; work to ensure technical and organisational preparedness, administrative and financial capacities and resources as well as development of IT infrastructure, systems and relevant databases for full participation in the Electronic Exchange of Social Security Information (EESSI) system and the European Health Insurance Card scheme.

→ conclude additional bilateral agreements on social security coordination with EU Member States.

Chapter 3: Right of establishment and freedom to provide services

Albania is moderately prepared in the area of the right of establishment and freedom to provide services. Some progress was achieved in the reporting period especially by adopting the Law on freedom of establishment and the provision of services.

The Commission’s recommendations from last year were partially implemented and therefore remain mostly valid. In the coming year, Albania should in particular:

→ continue efforts to align secondary legislation related to the Law on freedom of establishment and provision of services, as well as sectoral legislation with the EU acquis and ensure appropriate institutional coordination and implementation capacity;

→ continue efforts to align its legislation in the area of mutual recognition of professional qualifications with the EU acquis, as well as training programmes for regulated professions, and ensure appropriate institutional capacities.

Chapter 4: Free movement of capital

Albania has a good level of preparation on free movement of capital. Good progress was made in aligning with the EU acquis through the adoption of the Law on anti-money laundering and laws on payment services. Albania continued its action against money laundering, in particular with the implementation of the 2024-2030 National Strategy on the Fight against Money Laundering and Terrorist Financing.

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Albania should in particular:

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→ amend the legislation to align with the EU acquis and to fulfil Albania’s obligations under the SAA, ensuring equal treatment for EU and Albanian citizens in land acquisition;

→ continue to implement adopted legislation in the area of payments and continue to enable the regulatory framework and infrastructure for implementing the clone of the TARGET instant payment system;

→ continue to implement the 2024-2030 Anti-Money Laundering and Terrorism Financing Strategy and National Risk Assessment Action Plan 2024-2027.

Chapter 6: Company law

Albania has a good level of preparation on company law. Good progress was made with the adoption of legislation aiming at aligning the legal framework with the EU acquis in the area of corporate law accounting, transparency and audit. The Law on entrepreneurs and commercial companies, the related package on European economic interest groupings, on the European cooperative society and on the statute of European company, were also adopted aiming at full alignment with EU company law acquis.

The Commission’s recommendations from last year were largely implemented. In the coming year, Albania should in particular:

→ implement the adopted legislation in the area of audit, accounting and transparency and strengthen the capacities of the competent authorities;

→ implement the Action Plan for full alignment with and implementation of the Corporate Sustainability Due Diligence Directive.

Chapter 7: Intellectual property law

Albania has a good level of preparation on intellectual property rights (IPR). Good progress was made in the reporting period, in particular by adopting the amended law on copyrights, aligning with the EU acquis on industrial designs; and geographical indications; and strengthening the IPR institutional set-up.

The Commission’s recommendations from last year were mostly implemented. In the coming year, Albania should in particular:

→ start implementing the new legislation on copyright, industrial designs, geographical indications and the enforcement of IPR;

→ continue to improve the functioning of collective management organisations, especially in terms of enforcement, collection of royalties and payments to rights holders;

→ further strengthen the enforcement of all aspects of the IPR system, through monitoring, budgeting, increased awareness, strengthened institutional capacity and training.

Chapter 8: Competition policy

Albania is between having some and a moderate level of preparation on competition policy. There was limited progress during the reporting period, particularly on legislative alignment with the EU acquis.

The Commission’s recommendations from last year were implemented only to a limited extent and remain valid. In the coming year, Albania should in particular:

→ ensure the operational independence of the Authority of State Aid control (SAC) and ensure adequate administrative capacity for its secretariat;

→ further align the legislative framework in the areas of State aid, mergers and anti-trust with the EU acquis;

→ step up efforts to raise awareness of State aid rules among the judiciary, line ministries,

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as well as regional and local authorities, to ensure that the SAC is notified in advance of aid measures and to strengthen the enforcement of competition and State aid rules.

Chapter 9: Financial services

Albania has a good level of preparation on financial services. Some progress was made in aligning the legislative framework, mainly through technical work on full alignment with the Capital Requirements Regulation and the Capital Requirements Directive.

The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Albania should in particular:

→ continue working towards fully aligning Albania’s banking regulation with the amended versions of the Capital Requirements Directive and Regulation (CRD/R), the Bank Recovery and Resolution Directive (BRRD), and the Deposit Guarantee Schemes Directive (DGSD) and ensure that all entities are appropriately regulated and supervised, including the National Development Bank;

→ advance steps for alignment with the EU acquis on insurance and occupational pensions, including the Solvency II Directive;

→ continue efforts to fully align with the EU acquis on capital markets, including securities markets, investment funds, investment services and financial market infrastructures.

Chapter 28: Consumer and health protection

Albania is between an early stage of preparation and having some level of preparation in the area of consumer and health protection. Due to the adoption of a legal package to align with several pieces of EU consumer acquis, there was some progress, however, significant progress is needed on alignment, on both consumer protection and on public health.

The Commission’s recommendations from last year were not fully implemented and therefore remain valid. In the coming year, Albania should in particular:

→ adopt the new law on consumer protection to align Albania’s consumer law with many elements of the EU acquis on consumer protection;

→ continue working on alignment with the EU acquis on medicinal products for human and veterinary use, medical devices and tobacco control;

→ increase the financial and human resources in the health sector, specifically in primary healthcare and all-hazard health emergency preparedness, and guarantee equal access to quality health services for vulnerable groups, in particular people with disabilities, women and girls.

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH

Chapter 10: Digital transformation and media

Albania has a good level of preparation in the field of digital transformation and media and made good progress during the reporting period. The Law on cybersecurity enabled further alignment with the EU Directive on measures for a high common level of cybersecurity across the EU (NIS 2 Directive). The implementing legislation for the Law on cybersecurity is complete. The new Cybersecurity Strategy 2025-2030 and its action plan for 2025-2027 have been adopted.