# EUR-Lex - 52013PC0067 - EN

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# 52013PC0067

**OPINION OF THE COMMISSION__pursuant to Article 294(7)(c) of the Treaty on the Functioning of the European Union,_on the European Parliament's amendment_to the Council's position regarding the proposal for a DECISION OF THE EUROPEAN PARLIAMENT _AND OF THE COUNCIL__providing further macro-financial assistance (MFA) to Georgia___ /* COM/2013/067 final - 2010/0390 (COD) */**

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2010/0390 (COD)

OPINION OF THE COMMISSION
pursuant to Article 294(7)(c) of the Treaty on the Functioning of the European
Union,
on the European Parliament's amendment
to the Council's position

regarding the proposal for a DECISION OF
THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
providing further macro-financial assistance (MFA) to Georgia

1.           Introduction

Article 294(7)(c) of
the Treaty on the Functioning of the European Union provides that the
Commission is to deliver an opinion on the amendments proposed by the European
Parliament at second reading. The Commission sets out its opinion below on the
amendments proposed by the Parliament.

2.           Background

Date on which the proposal was sent to Parliament and
Council: 13 January 2011

Date of Parliament's opinion at first reading: 10 May 2011

Date of Commission's position on Parliament's amendments on
first reading: 10 May 2011

Date of Council position at first reading: 10 May 2012

Date of Parliament's opinion at second reading: 11 December
2012

3.           Objective of the proposal from the
Commission

The proposal was part of the potential EU
deliverables announced at the donor conference in 2008. The objectives of the
proposed Macro-Financial Assistance (MFA) are to:

·
Contribute to covering the external financing needs
of Georgia and to alleviating budgetary financing needs.

·
Support the fiscal consolidation effort and
external stabilisation in the context of an International Monetary Fund
programme.

·
Support structural reform efforts aimed at
raising sustainable growth and increasing the transparency and efficiency of
public finance management.

Facilitate and encourage efforts by the
authorities of Georgia to implement measures identified under the EU-Georgia
ENP Action Plan and the Eastern Partnership so as to promote closer economic
and financial integration with the EU, also in line with the plan to conclude a
"Deep and Comprehensive Free Trade Area" between the two parties.

4.           Opinion of the Commission on the amendment
proposed by the European Parliament

4.1.        Amendments rejected
by the Commission

Regarding the only contentious issue, the use
of the comitology procedure for the adoption of the Memorandum of Understanding
(MoU - the list of policy conditions) of Articles 2 and 6, the Commission
agreed to the Parliament's position in first reading to use advisory procedure
without justification. This has been maintained in second reading. The other
amendments introduced by the Parliament are either editorial or reconfirm the
initial Commission proposal.

However, in line with the Commission's position
on the amendments of the Parliament in the first reading on the proposal for a
MFA for the Kyrgyz Republic (in the same Plenary of December 2012) and given
the conflict between the Parliament and the Council on this sensitive
procedural issue, which blocks currently all MFA proposals and which requires
an urgent compromise solution between the two institutions, the Commission
proposes to keep a specific justification for the application of the Advisory
Procedure for the adoption of a MoU.

5.           Conclusion

The
discussions between the co-legislators will focus on the comitology issue and
the Commission is above all
interested in finding a solution as soon as possible regarding the conflicting
views of the Council and the Parliament concerning the application of the
Advisory or the Examination Procedure for the adoption of the MoU for Georgia. The Commission will continue to
propose compromise solutions.