EU assistance fact sheet: Georgia

News and Press Release
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Brussels, 22 October 2008

What is the Commission's assistance plan following the conflict?

In the immediate aftermath of the conflict in Georgia, the European Commission has provided humanitarian assistance and started working on a comprehensive assistance package, which will be up to €500 million. The package will cover the period of 2008-2010 and be subject to review based on the pace of recovery and evolution of the Georgian economy.

The main source of the funding is a mix of programmed funds under the ENPI envelope and crisis instruments, such as the Instrument for Stability, ECHO - Humanitarian Aid and ECFIN grants for Macro-Financial Assistance (MFA). The package also includes the costs for the EU (ESDP) Civilian Monitoring Mission in Georgia covered by the CFSP budget.

Through this enhanced package, the Commission aims to provide assistance for:

- Resettlement of internally displaced persons (IDPs);

- Economic rehabilitation and recovery;

- Macro-financial stabilisation;

- Infrastructure support, especially in the energy sector.

However, this package does not change the main priorities and focus of EC assistance. On the contrary, the conflict has further increased the need for support in the priorities identified in the ENP AP.

What are the EU assistance priorities for Georgia?

The European Neighborhood Policy (ENP) Action Plan (AP) adopted in 2006 for a 5 year period and agreed between the EU and the Georgian government has been the backbone of EU-Georgia bilateral cooperation.

The National Indicative Programme for the period 2007-2010 for Georgia outlines four priority areas and the allocation of € 120.4 million in financial assistance.

- Support for democratic development, rule of law and: democracy and human rights; rule of law and judicial reform; good governance and public finance reform

- Support for economic development and ENP AP implementation: promoting external trade and improving the investment climate; regulatory reforms and Education

- Support for poverty reduction and social reforms: strengthening social reforms in health and social protection; rural and regional development

- Support for peaceful settlement of Georgia's internal conflicts

In 2007 and 2008, the most sizeable programmes have been those supporting reforms in public finance management and criminal justice sectors, technical support for the implementation of the ENP AP and economic restructuring efforts in breakaway regions as part of Confidence Building Measures. In addition under the Neighbourhood policy, Georgia has also benefited from a number of thematic, regional and other assistance programmes.

For further information on ongoing EU-funded assistance programmes and projects:

For 2008, the EC assistance package foresees a total of €181.9 million in support of Georgia broken-down as follows:

€98.7 million for the needs of Internally Displaced persons:

€21 million through the UN Flash Appeal;

€77.7 million through grants, direct budget support and contributions to Municipal Development Fund.

€47.8 million for Core Recovery of Georgian economy, including

€11.5 million for Macro-Financial Assistance, debt reduction (subject to meeting conditions previously agreed)

€36.6 million for ongoing assistance under various programmes; [education economic rehabilitation of conflict regions, democracy and human rights non-state actors and investment projects ]

€35.4 million for the EU Monitoring Mission in Georgia, launched on 1 October 2008

Additional information to be found on EuropeAid Georgia homepage: