Georgia to receive financial aid from EU

Georgia is set to receive € 22.5 million in financial assistance from the European Union.

The money should encourage Georgian democracy during "challenging times with some neighbours acting in complete disregard of international laws and norms,” said the European Commissioner on his official visit to Georgia.

Commissioner for Enlargement and European Neighbourhood Policy Stefan Fule signed two financial agreements aimed to support Georgia's public finances reform and to strengthen the role of Parliament.

The agreement to support Georgia’s reform of public finance policy was worth € 21 million. It was expected to contribute to good governance and further strengthen government services' delivery and the accountability of the public sector.

It was also supposed to promote transparency while increasing efficiency and effectiveness of planning and governmental spending.

Georgian State Minister for European and Euro-Atlantic Integration Alex Petriashvili signed the document from the Georgian side. 

Nineteen million Euros, out of 21 (through tranches), were said to be directed to the state budget and € 2 million will be used for Technical Assistance projects aimed to enhance capacities of the Georgian governmental institutions.

After signing the agreement, Fule said: "It is important for me not only to come and talk about the significance of consolidating democratic institutions and strengthening the inclusivity of the reform process but also to support it with concrete help. This program creates a new mechanism to allow Parliament to make recommendations on the state budget. Civil society will be informed and consulted. All this should ultimately lead to better management of public spending and accountability towards Georgian citizens.”

The financial agreement to strengthen the system of Parliamentary democracy in Georgia, signed by Parliamentary Speaker David Usupashvili, was worth € 1.5 million.

The deal was meant to help Parliament develop new capacities in the system of Government oversight, strengthen its policy making capacity and enhance its role in the European integration process.

Parliamentary leadership, as well as Parliamentary Commissions, were expected to make the policy-making and oversight function more effective.

"This is a clear expression of our interest in strengthening democracy in Georgia. To have a strong, capable Parliament is very important, particularly when we are witnessing challenging times with some neighbours acting in complete disregard of international laws and norms,” Commissioner Fule said.

The project – "Support to Public Finance Policy Reforms (PFPR)" - is set to be implemented under the 2013 Annual Action Plan of the EU-Georgia National Indicative Program.