EC cooperation with GeorgiaEC cooperation with Georgia

ENP APENP AP

IntroductionIntroduction

The enlargement of the European Union on 1 May 2004 The enlargement of the European Union on 1 May 2004 has brought a historical shift for the Union in political, has brought a historical shift for the Union in political, geographic and economic terms, further reinforcing the geographic and economic terms, further reinforcing the political and economic interdependence between the EU political and economic interdependence between the EU and neighbouring countries.and neighbouring countries.

It offers the opportunity for the EU and neighbouring It offers the opportunity for the EU and neighbouring countries to develop an increasingly close relationship, countries to develop an increasingly close relationship, going beyond co-operation, to involve a significant going beyond co-operation, to involve a significant measure of economic integration and a deepening of measure of economic integration and a deepening of political co-operation.political co-operation.

IntroductionIntroduction

The approach is founded on partnership, joint ownership The approach is founded on partnership, joint ownership and differentiation.and differentiation.

The ENP sets ambitious objectives based on commitments The ENP sets ambitious objectives based on commitments to shared values and effective implementation of political, to shared values and effective implementation of political, economic and institutional reforms.economic and institutional reforms.

Action PlanAction Plan

Political document laying out the strategic objectives of Political document laying out the strategic objectives of the cooperation between each neighbourhood countries the cooperation between each neighbourhood countries and the EUand the EU

Covers a time frame of five yearsCovers a time frame of five years

Implementation of Action PlanImplementation of Action Plan

Will help fulfil the provisions in the Partnership and Will help fulfil the provisions in the Partnership and Cooperation Agreement (PCA)Cooperation Agreement (PCA)

Build ties in new areasBuild ties in new areas

Will encourage and support Will encourage and support neighbourhood countries’ neighbourhood countries’ objective of further integration into European economic and objective of further integration into European economic and social structures.social structures.

Implementation of Action PlanImplementation of Action Plan

Will significantly advance the approximation of Will significantly advance the approximation of neighbourhood countries’ legislation, norms and neighbourhood countries’ legislation, norms and standards to those of the European Unionstandards to those of the European Union

Will build solid foundations for further economic Will build solid foundations for further economic integration based on the adoption and implementation of integration based on the adoption and implementation of economic and trade-related rules and regulations with economic and trade-related rules and regulations with the potential to enhance trade, investment and growththe potential to enhance trade, investment and growth

New partnership perspectives New partnership perspectives

opened by ENPopened by ENP

The perspective of moving beyond The perspective of moving beyond

cooperation to a significant degree of cooperation to a significant degree of

integration, including through a stake in integration, including through a stake in

the EU’s Internal Market, and the the EU’s Internal Market, and the

possibility for neighbourhood countries to possibility for neighbourhood countries to

participate progressively in key aspects of participate progressively in key aspects of

EU policies and programmes;EU policies and programmes;

New partnership perspectives New partnership perspectives opened by ENPopened by ENP

Deepening trade and economic relations; Deepening trade and economic relations;

Providing the opportunity for convergence Providing the opportunity for convergence

of economic legislation, the opening of of economic legislation, the opening of

economies to each other and the economies to each other and the

continued reduction of non-tariff barriers continued reduction of non-tariff barriers

to trade, which will stimulate investment, to trade, which will stimulate investment,

exports and growth;exports and growth;

New partnership perspectives New partnership perspectives opened by ENPopened by ENP

Increased financial support: EU financial assistance for Increased financial support: EU financial assistance for ENP countries and new European Neighbourhood and ENP countries and new European Neighbourhood and Partnership Instrument (ENPI)Partnership Instrument (ENPI)

Support including technical assistance and twinning to Support including technical assistance and twinning to meet EU norms and standards, and targeted advice and meet EU norms and standards, and targeted advice and support for legislative approximation through a mechanism support for legislative approximation through a mechanism such as TAIEX;such as TAIEX;

Priority areasPriority areas

Rule of lawRule of law Improvement of business climateImprovement of business climate Economic development and poverty reductionEconomic development and poverty reduction Cooperation on JLS and border managementCooperation on JLS and border management Regional cooperationRegional cooperation Resolution of internal conflictsResolution of internal conflicts Cooperation on foreign and security policyCooperation on foreign and security policy Transport and EnergyTransport and Energy

Monitoring and follow upMonitoring and follow up

Yearly cooperation committeYearly cooperation committe Yearly sub committees (Trade and Yearly sub committees (Trade and

Economics, JLS)Economics, JLS) Yearly progress reportsYearly progress reports Consultation with major stakeholdersConsultation with major stakeholders GoG implementation planGoG implementation plan

1st progress reports on 20071st progress reports on 2007

Good progesss on judiciary reforms, Good progesss on judiciary reforms, improving state revenues and fight against improving state revenues and fight against corruption (but independence and corruption (but independence and impartiality of judiciary remains an issue)impartiality of judiciary remains an issue)

Progress in improving business climate, Progress in improving business climate, reforming revenue service and VETreforming revenue service and VET

Proper implementation of laws in the area of Proper implementation of laws in the area of governance and human rights is neededgovernance and human rights is needed

Progress and problems

Food safety Labour code Secondary legislation for customs code Competition and company law Prison conditions Property rights Civil service law Statistics

EC cooperation with GeorgiaEC cooperation with Georgia

ENPI - Context, challenges and ENPI - Context, challenges and timeframetimeframe

ENPI - Main factsENPI - Main facts

ScopeScope Country specific programmes Country specific programmes Cross border cooperation with Cross border cooperation with

EU Member StatesEU Member States

RegionRegion 17 countries: Mediterranean,17 countries: Mediterranean,Eastern Europe, Russia,Eastern Europe, Russia,Caucasus, Middle EastCaucasus, Middle East

FundingFunding Average €1.6 billion per year Average €1.6 billion per year

RefRef Reg: 1638/2006 of 24.10.06Reg: 1638/2006 of 24.10.06ReplacesReplaces Mainly Tacis and Meda RegulationsMainly Tacis and Meda Regulations

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The programming processThe programming process

Strategy Papers

Strategy Papers

Multi-annual Indicative

Programmes

Multi-annual Indicative

Programmes

Annual Action Programme

Annual Action Programme

► Analysis of the situation

► Response strategy

►Priority sectors

► 7 years

► revised at mid-term

►normally attached to Strategy Papers

► set global and per priority allocations

► cover 3 – 4 years

►annual

► describe projects identified for financing

► define the budget per

project

►lead to EC decision & commitments of funds

CSP and NIP define four priority CSP and NIP define four priority areas four Geogiaareas four Geogia

Support for democratic development, rule of Support for democratic development, rule of law and governancelaw and governance

Support for economic development and Support for economic development and ENP AP implementationENP AP implementation

Support for poverty reduction and social Support for poverty reduction and social reformsreforms

Support for peaceful settlement of Georgia’s Support for peaceful settlement of Georgia’s internal conflictsinternal conflicts

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Allocation for GeorgiaAllocation for Georgia

• NIP 2007-2010 124 million €uroNIP 2007-2010 124 million €uro

2007 :2007 : 24 M€24 M€

2008:2008: 28,8 M€ 28,8 M€

2009 :2009 : 30,4 M€ 30,4 M€

2010: 37,2 M€2010: 37,2 M€

Budget allocation for the NIP 2007-Budget allocation for the NIP 2007-20102010

Priority areaPriority area Mio €Mio € %%

Support for democratic development, rule of law and Support for democratic development, rule of law and governancegovernance

31.531.5 2626

Support for economic development and ENP AP Support for economic development and ENP AP implementationimplementation

31.531.5 2626

Support for poverty reduction and social reformsSupport for poverty reduction and social reforms 38.438.4 3232

Support for peaceful settlement of Georgia’s internal Support for peaceful settlement of Georgia’s internal

conflictsconflicts 1919 1616

TotalTotal 120.4120.4 100100

2020

AAP 2007 GeorgiaAAP 2007 Georgia

Programme Budget Implementation

Support to PFM reforms 16 Mio € Sector Support

Twinning Facility 4 Mio € Twinning/TA

Rehabilitation in Conflict Zones

4 Mio € Grant contracts

TOTAL 24 Mio €

2121

AAP 2008 GeorgiaAAP 2008 Georgia

Programme Budget Implementation

Support to criminal justice reforms

16 Mio € Sector Support

Twinning Facility 6.8 Mio € Twinning/TA

Rehabilitation in Conflict Zones

6 Mio € Grant contracts

TOTAL 28.8 Mio €

Other funds and instruments Other funds and instruments

Regional programmes (especially transport, Regional programmes (especially transport, energy, environment)energy, environment)

Interregional programms (Erasmus, Tempus, Interregional programms (Erasmus, Tempus, Taiex, Sigma, etc.)Taiex, Sigma, etc.)

Cross Border CooperationCross Border Cooperation Specific instruments (EIDHR, IfS)Specific instruments (EIDHR, IfS) Thematic budget lines (NSA, Migration, etc.)Thematic budget lines (NSA, Migration, etc.) Specific funds (governance facility, investment Specific funds (governance facility, investment

facility)facility)

Ongoing Tacis projectsOngoing Tacis projects

Still TACIS projects from 2004 to 2006Still TACIS projects from 2004 to 2006 Ca. 200 contracts in many areasCa. 200 contracts in many areas

– Rule of law and governanceRule of law and governance– Customs, taxesCustoms, taxes– Border management and fight against drugsBorder management and fight against drugs– HealthHealth– StatisticsStatistics– Etc.Etc.

New New cooperation modalitiescooperation modalities

Isolated TA projects almost abolishedIsolated TA projects almost abolished Sector support programmes (including Sector support programmes (including

budget support)budget support) TwinningTwinning

For Georgia the structure for AP is For Georgia the structure for AP is quite straight forwardquite straight forward

1 sector programme (to be chosen each 1 sector programme (to be chosen each year in function of the PIN and sector year in function of the PIN and sector readiness)readiness)

1 twinning programme (kind of facility that 1 twinning programme (kind of facility that can respond to the whole area covered by can respond to the whole area covered by NIP)NIP)

1 conflict intervention (rather project 1 conflict intervention (rather project oriented)oriented)

Sector choice within NIP so farSector choice within NIP so far

2007 “Public finance management”2007 “Public finance management” 2008 “Criminal justice reform”2008 “Criminal justice reform” 2009 still in discussion. Probably “Vocational 2009 still in discussion. Probably “Vocational

training and educational”training and educational”

Programming challenges for AP Programming challenges for AP 20082008

““Twinning” still experiences little requestTwinning” still experiences little request ““Conflict” very sensitive issues with little Conflict” very sensitive issues with little

input from government so far. Difficulty to input from government so far. Difficulty to agree on activities as well with Georgian agree on activities as well with Georgian government as with the break away regionsgovernment as with the break away regions

““Rule of law” still not very structured sectorRule of law” still not very structured sector

Timeframe AP2008Timeframe AP2008

11/07 DEC sent first draft proposal on budget allocation to 11/07 DEC sent first draft proposal on budget allocation to governmentgovernment

12/07 Official response and Elaboration of Project 12/07 Official response and Elaboration of Project Identification Fiches (PIF)Identification Fiches (PIF)

12/07 PIF go through first Quality support group meeting 12/07 PIF go through first Quality support group meeting (QSG1)(QSG1)

02/08 Finalisation of Action Fiches and QSG202/08 Finalisation of Action Fiches and QSG2 03/08 Launching of Inter service consultation03/08 Launching of Inter service consultation 05/08 ENPI Committee meeting05/08 ENPI Committee meeting 06/08 End of European Parliament’s right of scrutiny06/08 End of European Parliament’s right of scrutiny 07/08 Commission Decision07/08 Commission Decision 08/08 Financing Agreements08/08 Financing Agreements 10/08 Beginning of implementation period10/08 Beginning of implementation period