In 2014, Moldova signed an association agreement and has been continuously deepening its cooperation with the EU ever since. In recent years, the country's economic development has accelerated. Nevertheless, the Republic of Moldova is still one of the poorest countries in Europe. According to the National Statistics Office, about 25 % of the population live below the poverty line and living conditions in the capital Kishinev differ greatly from those in the other regions and especially in rural areas. Due to the lack of jobs, one third of the potentially employable population seeks work abroad. The status of the region of Transnistria, which has been under Russian control since 1992, remains unresolved and thus represents a considerable burden for the country's development. Deficits in governance and the rule of law, powerful oligarchic structures and a high level of corruption in the public and private sectors hinder the country's further democratic and economic development. The political situation is volatile and further developments unclear.
KfW Development Bank supports Moldova on behalf of the German Federal Government in the area of good governance.