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___
Date: 2013-02-05
Institutions: European Commission
Subjects: Georgia, economic stabilisation, financial aid, financial requirements, structural adjustment

EUROPEAN 
COMMISSION 

Brussels, 5.2.2013  
COM(2013) 67 final 

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 

EN 

   EN 

 
 
 
 
  
 
 
 
 
 
 
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. 

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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. 

EN 

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   EN