Decision (EU) 2018/598 providing further macro-financial assistance to Georgia

Ce que fait l'acte

PROPOSED ACT: Decision of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: relations between the European Union and Georgia continue to develop within the framework of the European Neighbourhood Policy (ENP) and the Eastern Partnership. The EU-Georgia Association Agreement, which includes the gradual introduction of a Deep and Comprehensive Free Trade Area (DCFTA), was signed in June 2014 and entered into force on 1 July 2016. Georgia continues to face a weak external environment , which, through reduced exports and remittances, has contributed to the relatively subdued GDP growth of 2.7% in 2016 (compared to 2.9% in 2015 and 4.6% in 2014). Georgia’s fiscal deficit remains significant and its public debt-to-GDP ratio has increased. Georgia’s balance of payments position remains vulnerable due to a very large current account deficit and high external debt. The Committee on International Trade adopted the report by Hannu TAKKULA (ALDE, FI) on the proposal for a decision of the European Parliament and of the Council providing further macro-financial assistance to Georgia. As a reminder, the Commission proposes to make macro-financial assistance available to Georgia for a maximum amount of EUR 45 million - of which EUR 35 million in the form of loans and EUR 10 million in the form of grants - to help the country to cover part of its external financing needs over the period 2017-2020. The proposal provides that the provision of macro-financial assistance by the Union should: be subject to a pre-condition that the beneficiary country respects effective democratic mechanisms, including a multi-party parliamentary system and the rule of law and that it guarantees respect for human rights; have as specific objectives increased efficiency, transparency and accountability of the public finance management systems in Georgia, and promote structural reforms aimed at supporting sustainable and inclusive growth, employment creation and fiscal consolidation. The committee recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission proposal so as to make it clear that the Union’s macro-financial assistance should also include measures to support the implementation of the Association Agreement, including the Deep and Comprehensive Free Trade Agreement . To ensure that specific objectives can be properly assessed, they need to be set out in a verifiable and measurable manner. If the precondition and the objectives are not met or if the aims and principles of the Association Agreement are generally disregarded, the Commission should temporarily suspend or cancel the disbursement of the Union’s macro-financial assistance. The European Parliament adopted by 570 votes to 108, with 25 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council providing further macro-financial assistance to Georgia. The European Parliament’s position adopted at first reading…