Georgia Receives €45 Million of Financial Assistance

After the European Commission proposed to support Georgia’s economic development, the European Parliament has approved financial assistance worth €45 million. Considering the importance of strengthening Georgia’s macro-level economic performance, the additional financial support will cover essential financial needs between 2017-2020.

Sajad Karim, Head of the Georgia-EU Association Committee, has published a Parliamentary paper on Twitter, specifying the composition of the two installments of a medium-term loan worth €35 million and a grant worth €10 million.

As stated in the paper, it is the third time since the illegal Russian incursion into Georgian territory in 2008 that the EU has supported Georgia’s financial situation. The money comes as additional support to the European Neighbourhood Program, aiming to foster the relationship between the EU and its neighboring states.

The EU points to Georgia’s fiscal deficit, hoping to counter against the negative developments partially caused by a depreciation of the Georgian Lari. The EU highlights, however, the great developments of Georgia in the fields of democracy, the rule of law and human rights, which the EU continues to closely monitor, hoping for an even stronger rapprochement between Georgia and the EU.

Since the disappearance of the iron curtain, the EU has set up major financial and political aid programs, aiming to stabilize neighboring countries. Often, the desired effect has not turned out to be easily achievable, as countries like Libya and Syria are in the midst of a civil war. With other countries, such as Georgia or Morocco, the EU partnerships have been more effective, helping both governments to implement essential reforms and amend existent laws.