The European Union Commission published a report on Georgia’s Implementation of the Association Agreement – 2021.

“Georgia continued steadily on its European path including in the challenging COVID-19 context.

Parliamentary elections took place on 31 October and 21 November. In the run-up to these elections, the Georgian Parliament adopted constitutional amendments changing the electoral system to a more proportional one, as well as an election reform package. The package partially addressed OSCE/ODIHR recommendations issued after the 2018 presidential elections1.

The 2020 parliamentary elections were competitive and, overall, fundamental
freedoms were respected according to the joint statement of preliminary findings and conclusions of the international observers from the OSCE Office for Democratic Institutions and Human Rights and the Parliamentary Assemblies of the OSCE, Council of Europe and NATO. The international observers noted, however, that the conduct of the elections was impacted by pervasive allegations of pressure on voters and blurring of the line between the
ruling party and the state throughout the campaign and on election day, reducing public confidence in some aspects of the process. The opposition questioned the results of the first round and boycotted the second round of the majoritarian elections as well as the opening session and early proceedings of the new Parliament.

At the beginning of 2021, no political agreement had been found between the political parties. The new Parliament confirmed thecabinet led by Prime Minister Giorgi Gakharia, consisting of 11 Ministers retaining their posts and a new Justice Minister. Civil society remained very active in holding public institutions to account and monitoring the implementation of the AA, including the Deep and Comprehensive Free Trade Agreement (DCFTA).

Against the backdrop of the COVID-19 pandemic, civil society played a more important role than ever in supporting those in need. A visa-free regime is in place for Georgian citizens to visit Schengen and Schengenassociated countries. Georgian citizens have made over 1,150,000 visits since its entry into force in March 2017. The third report under the Visa Suspension Mechanism adopted on 10 July 2020 confirmed that visa liberalisation benchmarks continue to be fulfilled. The high number of unfounded asylum applications remains a challenge despite the decrease in 2020, in the context of the introduction of COVID-19 related travel restrictions.

Georgia has undertaken a number of actions in this regard, including the adoption of the Law on the Rules and Procedures for Georgian Citizens exiting and entering Georgia by the Parliament in September 2020.

Important challenges remain with regard to the independence and accountability of the judiciary. In particular, public trust in the High Council of Justice remains low. On 30 September, the Parliament adopted further legislative amendments in relation to the nomination process of Supreme Court judges, without awaiting the relevant Venice Commission opinion and not fully addressing the continued shortcomings in this process.

The economy has entered a significant recession in 2020, especially in the second to fourth quarters of the year, with the International Monetary Fund (IMF) forecasting a contraction of 5%.

The EU remains Georgia’s largest trading partner. In the first eleven months of 2020, trade turnover between the EU and Georgia amounted to EUR 2.1 billion, down by 12% compared to the same period in 2019. From January to November 2020, the EU27 imported goods from Georgia worth EUR 671 million, up by 16% compared to the same period in 2019. In the same period, the EU27 exported goods to Georgia worth EUR 1,443 million (21% lower than in the first eleven months of 2019).

As part of the “Team Europe” approach, the EU has delivered a robust response to support Georgia’s efforts in tackling the COVID-19 pandemic and has reprogrammed EUR 183 million of grants to support Georgia. In addition, the EU allocated an exceptional MacroFinancial Assistance programme of EUR 150 million, already partially disbursed in 2020.

Part of the 2019 bilateral allocation (EUR 127 million) and of the 2020 bilateral allocation (EUR 102.7 million) have been reprogrammed to better support the country’s COVID-19 response in three main areas: health sector, socio-economic recovery and the most vulnerable population. The EU support focuses on the Georgian Government’s Anti-crisis Economic Plan to address the challenges of the COVID-19 pandemic, accompanied by flanking measures in the areas of environment, health, socio-economic recovery and migration, as well as the promotion of human rights.

The EU remained strongly supportive of Georgia’s sovereignty and territorial integrity within its internationally recognised borders, including by continuing the efforts of the EU Special Representative, its engagement as co-chair in the Geneva International Discussions and the continued presence on the ground of the EU Monitoring Mission for over 12 years now. Georgia continues to be committed to and participates actively in the Eastern Partnership and the ongoing reflection on its future”, - reads the report.