PM Resigns, New Candidate Chosen

Prime Minister of Georgia, Giorgi Kvirikashvili, on Wednesday announced his resignation, claiming the main reason is differences of opinion with the Georgian Dream (GD) Chair and founder, billionaire Bidzina Ivanishvili, who is often referred to by the opposition as Georgia’s “informal ruler.”

"The ruling political force held a meeting during which a difference of opinion on certain issues between the ruling team and myself became evident. In particular, our conversation involved the economic policy implemented by the government under my leadership. Since 2012, including through my tenure as Minister, I have never shied away from debate, and I believe that today is the time when the Party’s Chairman should be able to put together a team in line with his own views,” the PM said in his televised resignation address.

“I have served as our country’s Prime Minister since the end of December 2015. In that time, the government under my leadership has carried out crucially important reforms, including vitally important economic reforms. Throughout that time, despite the most complicated political, economic, and security situation in the region, we, together with our team, successfully established an environment of stability in Georgia and put the country on the right track to development. Today, we have the highest economic growth rates in the region, the most favorable environment for doing business, guaranteed protection of property rights, and free trade agreements with some of the largest markets. All this is recognized by every authoritative global organization and clearly reflected in international rankings. Today, even while two of our regions remain occupied, Georgia has a safe and stable environment as a result of our pragmatic and prudent policy,” he said, going on to note the unprecedented support from strategic partners the US and the EU.

“We have expressed readiness to take steps toward regulating relations with Russia in the Geneva Talks format, and I believe that these offers will sooner or later yield concrete results. I was sure back when we developed the government’s four-point reform agenda—the foundation of Georgian Dream’s winning platform in the 2016 parliamentary and 2017 local self-government elections—and I remain absolutely confident that we chose the right path for Georgia’s development. I know well how needy our people are; we have many families struggling against the most difficult circumstances of everyday life to provide for themselves, for their children, and to survive. But I also have no doubt in my mind that, without our policy, even the possibility of ensuring normal living conditions for the people would have been delayed for many years, which I could never allow. I believe that the team was fully motivated to work toward this end. I believe that a responsible politician, even more so the Head of Government, is obligated to make decisions, and even take unpopular steps in some cases, that aim for the country’s development and long-term objectives, not at immediate one-time outcomes.”

“Our economic policy decisions involved floating exchange rates, a moderate increase in refinancing rates to prevent negative economic growth, and steps in the direction of excessive debt and de-dollarization taken only after putting in place macroeconomic, fiscal stability, namely in late 2016 and early 2017, when we started taking these steps after we lowered the budget deficit to prudent limits,” Kvirikashvili said.

“We could have taken steps toward fixed exchange rates, which may have eased the population’s life at the moment,” he noted. “This way, however, we would have ended up wasting our currency reserves, and would have failed to ensure the economic policy and dynamics we have in the country today. It would have been possible to adopt certain compensators for the most vulnerable strata when making these decisions, and I accept critical remarks when it comes to that issue, but I repeat that the current dynamics stem precisely from right-wing decisions.”

He went on to state the figures: today Georgia has the highest economic growth in the region: 6.5% in April, 5.5 in the first four months of 2018 alone, a record-breaking tourism growth rate in the first five months of this year (24%), meaning that this indicator will significantly surpass 8,000,000 international visitors in 2018.

In January-April 2018, export grew 22%. Infrastructural projects of unprecedented scope have been launched, with over 9 billion GEL to be invested in their implementation in 2017-2020, and the implementation of these particular projects will create about 40,000-50,000 jobs.

Today, Georgia is recognized throughout the world as a safe country attracting investors and fit to host world-class championships and meetings in different global formats.

“All this preconditions the country’s development in the right direction. It is a solid foundation which, I am convinced, will yield great results, and our children will live in a safe, developed, and economically strong state,” Kvirikashvili said.

“I have tried to be the Prime Minister of each and every citizen. Yes, I have made decisions putting me at a disadvantage, but I always believed—and I still believe with all my heart—that my every decision, every step, was made to benefit my country, my homeland; to make a difference. I have always been a team player. This is why, observing the attitudes within the team, I made the decision that any team leader must make under these circumstances. Today, I resign from my office.”

In closing, he addressed with gratitude his staff, ministers, team and parliamentarians.

During the next seven days, the President of Georgia, Giorgi Margvelashvili, will have to name a new candidate for Prime Minister, as selected by the Parliamentary Majority – Georgian Dream.

The candidate for prime minister can maintain the previous Cabinet or change some ministers and present them before the Parliament of Georgia for confirmation.

The majority party presented acting Finance Minister Mamuka Bakhtadze as the Prime Minister candidate on June 14. Mamuka Bakhtadze is the fourth PM presented by the GD majority since they came to power in 2012.

Bakhtadze was born in 1982 and served as the Director General of the Georgian Railway from April 2013 to November 2017. Bakhtadze assumed the post of Finance Minister in November last year.

For updates, go to georgiatoday.ge

By Thea Morrison