COMMISSION STAFF WORKING DOCUMENT Georgia 2023 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2023 Communication on EU Enlargement policy
Date: 2023-11-08
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Georgia, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.11.2023  SWD(2023) 697 final  COMMISSION STAFF WORKING DOCUMENT Georgia 2023 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2023 Communication on EU Enlargement policy                     {COM(2023) 690 final} - {SWD(2023) 690 final} - {SWD(2023) 691 final} - {SWD(2023) 692 final} - {SWD(2023) 693 final} - {SWD(2023) 694 final} - {SWD(2023) 695 final} - {SWD(2023) 696 final} - {SWD(2023) 698 final} - {SWD(2023) 699 final}  
 
 
Table of Contents 

1. 

INTRODUCTION ................................................................................................................... 3 

1.1.  Context ......................................................................................................................... 3 
1.2.  Summary of the report .................................................................................................. 4 
1.3.  Assessment of the implementation of the 12 priorities in the Commission's opinion

 ...................................................................................................................................... 9 

2.  CLUSTER 1: FUNDAMENTALS OF THE ACCESSION PROCESS ............................... 14 

2.1.  Functioning of democratic institutions and Public Administration Reform ............... 14 
2.1.1. Democracy ........................................................................................................ 14 
2.1.2. Public administration reform ............................................................................ 18 
2.2 Rule of law and fundamental rights ................................................................................ 21 
2.2.1.  Chapter 23 - Judiciary and fundamental rights ........................................... 21 
2.2.2.  Chapter 24 - Justice, freedom and security ................................................. 43 
2.3. Economic criteria ........................................................................................................... 55 
2.3.1 The existence of a functioning market economy ............................................... 56 
2.3.2. The capacity to cope with competitive pressure and market forces within the 

Union ........................................................................................................... 62 
2.4. Public procurement, statistics, financial control ............................................................ 65 
Chapter 5 - Public procurement .................................................................................. 65 
Chapter 18 - Statistics ................................................................................................. 67 
Chapter 32 - Financial control .................................................................................... 69 

3.  GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION .................. 70 

4.  ABILITY TO ASSUME OBLIGATIONS OF MEMBERSHIP .......................................... 72 

Chapter 1 - Free movement of goods ......................................................................... 72 
Chapter 2 - Freedom of movement for workers ......................................................... 74 
Chapter 3 - Right of establishment and freedom to provide services ......................... 75 
Chapter 4 - Free movement of capital ........................................................................ 76 
Chapter 6 - Company law ........................................................................................... 77 
Chapter 7 - Intellectual property law .......................................................................... 78 
Chapter 8 - Competition policy .................................................................................. 79 
Chapter 9 - Financial services .................................................................................... 80 
Chapter 28 - Consumer and health protection ............................................................ 82 
Cluster 3: Competitiveness and inclusive growth ................................................................. 84 
Chapter 10 - Digital transformation and media .......................................................... 84 
Chapter 16 - Taxation ................................................................................................. 86 
Chapter 17 - Economic and monetary policy ............................................................. 87 
Chapter 19 - Social policy and employment .............................................................. 88 
Chapter 20 - Enterprise and industrial policy ............................................................. 90 
Chapter 25 - Science and research .............................................................................. 91 
Chapter 26 - Education and culture ............................................................................ 93 
Chapter 29 - Customs union ....................................................................................... 94 
Cluster 4: The Green agenda and sustainable connectivity ................................................... 95 

1 

 
 
Chapter 14 - Transport policy..................................................................................... 96 
Chapter 15 - Energy ................................................................................................... 98 
Chapter 21 - Trans-European networks .................................................................... 100 
Chapter 27 - Environment and climate change ........................................................ 101 
Cluster 5: Resources, agriculture and cohesion................................................................... 104 
Chapter 11 - Agriculture and rural development ...................................................... 105 
Chapter 12 - Food safety, veterinary and phytosanitary policy ................................ 106 
Chapter 13 - Fisheries and aquaculture .................................................................... 107 
Chapter 22 - Regional policy and coordination of structural instruments ................ 108 
Chapter 33 - Financial and budgetary provisions ..................................................... 110 
Cluster 6: External relations ................................................................................................ 111 
Chapter 30 - External relations ................................................................................. 111 
Chapter 31 - Foreign, security and defence policy ................................................... 112 
Annex I – Relations between the EU and Georgia .............................................................. 115 

2 

 
 
 
 
 
1.  INTRODUCTION  

1.1. CONTEXT 

Following Georgia’s application for EU membership in March 2022, the Commission issued 
an  opinion1  on  the  application  where  it  identified  12  priorities  for  the  country  to  continue 
proceed on its accession process. These priorities relate to the EU’s values and standards, in 
particular: democracy and the rule of law, including justice reform and public administration 
reform, as well as fundamental rights. On 23 June 2022, the European Council expressed its 
readiness to grant the status of candidate country to Georgia2, once the 12 priorities have been 
addressed and invited the Commission to report on the implementation of the twelve priorities. 
To complement the opinion, in February 2023 the Commission published the analytical reports 
on Georgia’s alignment with the EU acquis3. 

This  report  is  the  Commission’s  first  annual  enlargement  report  on  Georgia,  replacing  the 
previous  annual  Association  Implementation  Reports.  At  the  invitation  of  the  European 
Council, it includes a detailed assessment of Georgia’s fulfilment of the 12 priorities laid down 
in the Commission opinion on Georgia’s application for membership.  

The Georgian Parliament  prepared a Strategy  for EU Membership  Candidacy in  July  2022. 
Parliamentary committees and dedicated working groups have been set up to implement  the 
strategy, with support from the government. Civil society organisations and political parties 
also  took  part  in  policy  processes  to  bring  the  formulation  and  implementation  of  reforms 
forward.  

The Georgian government has declared that EU membership is its strategic goal and is making 
efforts in reforms and legislative alignment. In this context, coherent action and sustained effort 
are needed. In April 2023, the government approved the 2023 action plan for EU integration 
of Georgia, including the activities to be carried out in 2023, expected outcomes, timeframes, 
and sources of funding.  

Regarding the EU’s common foreign and security policy (CFSP), following Russia’s war of 
aggression against Ukraine, Georgia has aligned itself with international and EU initiatives in 
support  of  Ukraine,  including  on  Resolutions  adopted  by  the  UN  General  Assembly  and 
Human  Rights  Council  and  the  Council  of  Europe.  Georgia  did  not  align  with  the  EU’s 
restrictive measures against Russia and Belarus, nor with the related statements by the High 
Representative  on  behalf  of  the  EU.  In  May  2023,  the  Georgian  government’s  decision  to 
resume flights with Russia also raised concerns in terms of its commitment to align with the 
EU in its foreign policy, as per the EU-Georgia Association Agreement.  

Georgia  has  continued  to  steadily  implement  the  Association  Agreement  (AA),  including  a 
Deep and Comprehensive Free Trade Area (DCFTA).  

The  EU  supports  Georgia’s  sovereignty  and  territorial  integrity  within  its  internationally 
recognised borders and has been engaged since 2008 in  peaceful conflict  resolution  efforts, 
including through the EU Monitoring Mission and the work of the EU Special Representative 
for the South Caucasus and the crisis in Georgia. The Georgian government does not exercise 
effective control over Georgia's regions of Abkhazia and South Ossetia4. 

1 COM(2022) 405 final 
2 EUCO 24/22 
3 SWD(2023) 31 final 
4 This report does not address the situation in both regions. 

3 

 
 
 
1.2. SUMMARY OF THE REPORT5 

As  regards  the  political  criteria,  overall,  the  legislative  framework,  institutional  setup  and 
vibrant civil society provide Georgia with some level of preparation to further democratic and 
rule  of  law  reforms.  Nevertheless,  the  reform  process  has  been  hampered  by  continuing 
political tensions, deep polarisation, the absence of constructive engagement between political 
parties and the challenges of building consensus on key matters of national interest.  

Cross-party  tensions  between  the  ruling  majority  and  the  opposition,  as  well  as  limited 
consultation with civil society affected decision-making processes and the implementation of 
reforms. Parliament led the efforts to address the 12 priorities laid down in the Commission 
opinion and in July 2022, soon after the opinion was published, it set up working groups to 
debate the necessary reforms.  

Substantive cross-party work in Parliament was hampered by limited inclusion (by the ruling 
party) of the opposition in drawing up legislation, as well as by on-and-off boycotts by parts of 
the opposition. Nevertheless, there were good examples of cross-party cooperation and votes, 
including amendments to the Parliament’s rules of procedure that were adopted in November 
2022 to moderately increase the level of parliamentary oversight.  

A number of crucial laws for the EU integration path were taken through Parliament in the 
second and third quarter of 2023 with overall limited consultations, nor thorough analysis of 
compliance with EU or Council of Europe standards. With most of the work on the 12 priorities 
left to the Parliament, government action to accelerate the reform process and strengthen good 
governance led to limited progress in some reforms and some progress in others. The President 
vetoed several laws she assessed as contrary to the country’s European integration process.  

Civil society is well developed, diverse, vibrant and continues to enjoy the freedom to operate. 
The involvement of civil society in decision-making processes (opinion priority 10), at first 
promoted by Parliament through inclusion in working groups on the 12 priorities, was tainted 
by the March 2023 draft law creating a registry for ‘agents of foreign influence’. The draft law, 
which was eventually withdrawn following large protests in Tbilisi and strong international 
reactions, sowed distrust among civil society for the government and triggered a boycott of 
consultations on key reforms. This has persisted even after the law was withdrawn, although 
the  government  and  Parliament  held  two  conferences  with  civil  society  on  25  July  and  13 
September to re-establish good cooperation and announced to continue coordination meetings 
with  CSOs.  The  Speaker  of  the  Parliament  took  up  the  chairmanship  of  the  Permanent 
Parliamentary Council on Open Governance in September 2023.  

A Memorandum on cooperation between the Parliament of Georgia and the Georgian National 
Platform of the Eastern Partnership Civil Society Forum was signed in October 2023. 

Georgia is moderately prepared in the area of public administration reform. Some progress 
has been achieved in preparing and adopting the strategies for public administration and public 
finance management, and their related actions plans. The regulatory and procedural foundation 

5  This  report  covers  the  period  from  June  2022  to  June  2023.  It  is  based  on  input  from  a  variety  of  sources, 
including contributions from the government of Georgia, the EU Member States, European Parliament reports 
and  information from various international and non-governmental organisations. It also includes the results of 
comparative assessments and indices produced by other stakeholders, in particular in the area of rule of law. 
The report uses the following assessment scale to describe the state of play: early stage, some level of 
preparation, moderately prepared, good level of preparation and well advanced. To describe progress made 
during the reporting period, it uses the following scale: backsliding, no progress, limited progress, some 
progress, good progress and very good progress. Where appropriate, interim steps have also been used. 

4 

 
 
 
 
for evidence-based policy making needs to be enforced. Efforts need to be maintained to ensure 
a stable, accountable and transparent civil service system.   

The judicial system of Georgia has some level of preparation and limited progress has been 
achieved. On the functioning and overall capacity of the judiciary, four consecutive waves of 
reform have improved the legal framework. Some legislative changes were adopted, including 
on the accessibility of court decisions, the quality of reasoning for judicial appointments and 
on increasing the professional experience requirement to 10 years for the selection of Supreme 
Court nominees. Parliament adopted amendments to the Law on Common Courts in June 2023 
and  drafted  additional  amendments  in  September  2023  implementing  some  of  the 
recommendations of the Venice Commission including on the suspension of judges from office 
and, restrictions of the grounds of judge’s disciplinary liability. However, the amendments did 
not  address  the  most  important  recommendations  of  the  Venice  Commission  (stated  in  its 
opinions  of  March  2023  and  October  2023)  regarding  a  comprehensive  reform  of  the  High 
Council  of  Justice  (HCJ)  and  the  binding  nature  of  the  decisions  of  the  Supreme  Court  on 
appeal against HCJ decisions in the selection process of the Supreme Court judges. Namely, 
further broader reforms to ensure the full independence, accountability and impartiality of all 
judicial and prosecutorial institutions, especially the HCJ need to be undertaken in line with 
European  standards  and  the  recommendations  of  the  Venice  Commission.  In  particular, 
improvements and additional safeguards concerning the functioning and powers of the HCJ are 
needed and an effective right of appeal for the selection of Supreme Court judges should be 
ensured by clarifying the binding nature of the Supreme Court decision for the HCJ. Parliament 
elected two remaining non-judge members to the High Council of Justice with some concerns 
raised  regarding  the  selection  procedure.  Finally,  the  pending  amendments  concerning  the 
nomination  procedure  of  the  Prosecutor  General  through  qualified  majority  in  Parliament 
should be adopted. 

Georgia  has  made  some  progress  in  the  fight  against  corruption  and  has  some  level  of 
preparation.  In  line  with  recommendations  in  the  opinion,  an  Anti-corruption  Bureau  was 
established, combining several anti-corruption functions in a single body. Legislation on the 
Anti-Corruption Bureau was sent to the Venice Commission in September 2023. 

Georgia endorsed an  action plan on de-oligarchisation on 14 September and sent the action 
plan to the Venice Commission for opinion in September 2023. The action plan builds on the 
European Commission’s recommendations and the Venice Commission’s opinion of June 2023 
to follow a systemic approach, including by reinforcing the rules on competition policy, media 
diversity and the financing of political parties.  The action plan has been revised in  October 
strengthening the co-ordination and setting clearer timelines for actions. The draft law on de-
oligarchisation  which  envisaged  a  ‘personal’  approach  was  voted  down  in  third  reading  in 
Parliament on 19 September. Overall, prosecutions and convictions on corruption cases have 
increased compared to 2021. Further action is needed to further complete the de-oligarchisation 
action  plan  and  start  its  implementation,  to  establish  a  track  record  of  investigations, 
prosecution, adjudication and final convictions of corruption cases, notably at high-level and, 
in particular, to address the challenge of large-scale vested interests and their influence in both 
the political, judicial and economic spheres.  

Georgia made some progress in fighting organised crime and has some level of preparation. 
It  participated  in  an  increasing  number  of  joint  operations  with  EU  Member  States  and 
neighbouring countries. A new national strategy for combating organised crime, together with 
an  action  plan,  is  in  place.  The  anti-money  laundering  legislation  partially  reflects  the 
recommendations made by the Financial Action Task Force, as well as relevant international 
legislation.  The  Government  adopted  the  Report  on  Money  Laundering  and  Terrorism 

5 

 
 
Financing Assessment Risks in Georgia on 3 October 2023. 

There  are still  outstanding  recommendations from  the Council of Europe’s Moneyval to  be 
addressed. A national counterterrorism strategy for 2022-2026 and the corresponding action 
plan were adopted in 2022. More effort is needed to improve the coordination and effectiveness 
of law enforcement in fighting certain forms of crime, such as money laundering and financial 
crimes.  

On fundamental rights, Georgia has ratified most international human rights conventions and 
instruments, and complies overall with its obligations under international human rights law. A 
national strategy for human rights protection was adopted in March 2023. A draft action plan 
was elaborated and was submitted for  civil society consultations. The strategy contains some 
positive elements concerning economic and social rights. However, several key issues remain 
to be addressed, notably discrimination on grounds of sexual orientation and gender identity as 
well as the independence, accountability and transparency of the judiciary. The amendments 
remain to be aligned with the recommendations of the Venice Commission issued on 9 October 
2023. 

As regards the safeguard of fundamental  rights,  the amendments  to  the Criminal  Procedure 
Code,  which  raised  serious  concerns  regarding  compliance  with  European  standards  were 
adopted, overruling Georgia President’s veto. The amendments remain to be aligned with the 
recommendations of the Venice Commission opinion of October 2022. Parliament adopted a 
legislative  package  with  amendments  to  eleven  legislative  acts  that  make  reference  to  the 
ECtHR. The new Public Defender was appointed in February 2023, including with votes from 
the opposition. Challenges remain in adopting national strategies to fight all forms of hatred 
and discrimination and to protect minorities. 

On  freedom  of  expression,  Georgia  has  some  level  of  preparation  and  achieved    limited 
progress. The right to freedom of expression is  respected and upheld. Georgia improved its 
position in the World Press Freedom Index by 12 places (from 89th position in 2022 to 77th in 
2023).  There  are  no  restrictions  on  the  online  media  environment,  which  is  increasingly 
diverse. Civil society actively contributes to political dialogue.  

Georgia has continued to align its legislation with the key principles of the Audio-visual Media 
Services  Directive  (AVMSD)  and  in  October  adopted  related  amendments  to  the  law  on 
broadcasting.  The  effective  independence  of  the  national  regulator,  the  Communication 
Commission remains to be ensured. The Parliament is currently discussing amendments in this 
regard. The media environment is largely pluralistic, but also highly polarised and working in 
a hostile environment. The intersection of business and political interests continued to hamper 
media independence.  

Intimidation  and  physical  and  verbal  attacks  on  media  professionals  have  taken  place, 
especially in the context of demonstrations and election rallies. Follow-up investigations are 
not  yet  effective.  Strong  language  against  media  emanates  also  from  senior  government 
officials.  

Court proceedings and investigations against opposition media owners have become frequent. 
Recent verdicts have a negative effect on critical media reporting.  

Challenges  persist  regarding  the  exercise  of  the  right  to  freedom  of  assembly,  notably  for 
persons in the most vulnerable situations, and this includes the right to peaceful protest, as seen 
during the violent attacks against participants in the Tbilisi Pride on 8 July 2023. On 5 October, 
the  Georgian  Parliament  adopted  amendments  to  the  Law  on  Assemblies  in  expedited 

6 

 
 
procedure, without prior consultations.  The civil society and the Public Defender expressed 
concerns with this Law and the President vetoed it on 17 October. 

During the reporting period, Georgia adopted a series of strategic documents and legislation on 
gender equality, including on gender-based violence against women and domestic violence. 
The package of adopted laws introduced a gender impact assessment for all legislative acts and 
aimed  to  ensure  compliance  with  the  Council  of  Europe  Convention  on  Preventing  and 
Combating  Violence  against  Women  and  Domestic  Violence  (“Istanbul  Convention”).  The 
legal definition of ‘rape’ needs to be brought in line with the Istanbul Convention (as it is based 
on the absence of consent). On an institutional level, response to gender-based violence is well 
defined and operational. However, protective measures, survivors support services and post-
shelter support need further improvement. 

The legal framework on migration is partially aligned with the EU acquis but needs further 
alignment. Georgia strengthened its institutional resources and capacity to manage migration. 
Georgia’s visa liberalisation framework should be further improved and benchmarks met. 

Legislation on asylum is broadly in line with the EU acquis. The asylum management system 
has been put under increased pressure with the influx of Ukrainian nationals into Georgia and 
the issue of stranded migrants. The implementation and enforcement capacity of the asylum 
management system in Georgia needs further strengthening.  

On the economic criteria, Georgia is moderately prepared to establish a functioning market 
economy. Real GDP growth exceeded 10% for the second year in a row, the external position 
improved  significantly,  inflation  moderated  and  the  fiscal  deficit  and  public  debt  fell 
significantly.  

Georgia also demonstrates a satisfactory track record in carrying out sound macroeconomic 
policies, and the institutional and regulatory environment is favourable overall. Regarding the 
capacity to cope with competitive pressure and market forces within the EU, Georgia has some 
level of preparation. The structure of the economy is relatively well diversified, albeit with a 
high share of low value-added sectors. The EU remains Georgia’s largest trade partner but the 
share has been gradually decreasing in favour of geographically closer economies.  

On public procurement, Georgia has some level of preparation. Good progress was made in 
adopting the new Law on public procurement in February 2023. Further work is needed to align 
its  legislative  framework  with  the  EU  public  procurement  acquis,  including  utilities  and 
concessions. On statistics, Georgia has some level of preparation, with limited progress made 
with  adopting  the  Law  on  official  statistics.  The  adequacy  of  Geostat,  Georgia’s  National 
Statistics  Office  –  in  terms  of  human,  financial  and  IT  resources  –  needs  substantial 
improvement. Georgia has some level of preparation in the area of financial control, where 
the country made no progress, notably on public internal financial control and internal audit.  

On  good  neighbourly  relations  and  regional  cooperation,  Georgia  is  committed  to 
improving bilateral relations with candidate countries, potential candidates and neighbouring 
EU Member States. Georgia remains committed to the Eastern Partnership and maintained its 
engagement in several regional cooperation initiatives. Georgia enjoys a strategic partnership 
with Türkiye and Azerbaijan. Relations with neighbouring EU Member States Romania and 
Bulgaria are good, with a strong focus on connectivity in the Black Sea. 

On Georgia’s ability to assume the obligations of EU membership, the country continued its 
work on alignment with the EU acquis in many areas; overall there was some progress.  

Regarding cluster 2 on the internal market Georgia is moderately prepared in the areas of 
right of establishment and freedom to provide services, although no progress was registered in 

7 

 
 
the reporting period. The country has some level of preparation in terms of the free movement 
of goods, on which there was limited progress, and in terms of company law, notably with the 
strengthening of auditing. Georgia is at an early stage of preparation when it comes to the free 
of movement of workers, with limited progress on circular migration. Limited progress  can 
also be reported on intellectual property with the adoption of amendments to the Law on patent. 
There is some level of preparation on consumer and health protection, where the country made 
limited progress. Significant efforts are still needed on ensuring quality healthcare coverage 
for all. The national competition agency responsible for enforcement of consumer protection 
measures should be properly staffed. No progress can be reported on competition policy, where 
the Georgian State Aid Commission still lacks operational independence. There was limited 
progress  on  free  movement  of  capital,  where  Georgia  needs  to  follow  up  on  outstanding 
recommendations from the MONEYVAL report. Georgia has some level of preparation in the 
area of financial services and made limited progress during the reporting period. 

In  cluster  3,  competitiveness  and  inclusive  growth,  Georgia  is  moderately  prepared  in 
economic  and  monetary  policy;  enterprise  and  industrial  policy;  science  and  research; 
education and culture and the customs union. Georgia has some level of preparation in digital 
transformation and media, social policy and employment and is in between some and moderate 
level of preparation in taxation. The country has made some progress in digital transformation 
and media, taxation and science and research. Georgia has shown limited progress on enterprise 
and industrial policy.  

In  cluster  4,  green  agenda  and  sustainable  connectivity,  Georgia  is  at  an  early  stage  of 
preparation in environment and climate change. Georgia finalised its long-term low-emission 
development strategy. It has some level of preparation in the areas of energy, transport policy 
and  trans-European  networks.  A  new  market-based  support  scheme  for  renewable  energy 
production was introduced. Some progress was achieved on trans-European networks and more 
effort  is  needed  to  improve  transport  and  energy  infrastructure.  Georgia  achieved  some 
progress with the adoption of the new National Transport and Logistics Strategy, the adoption 
of  the  Railway  Strategy  in  February  and  the  adoption  of  the  Maritime  code.  More  effort  is 
needed  in  the  transport  sector,  with  a  notable  focus  on  road  safety,  rail  sector  reform,  and 
incorporating the principles of the smart and sustainable mobility strategy.  

In cluster 5, resources, agriculture and cohesion, Georgia is at an early stage of preparation 
in the chapters on agriculture and rural development and financial and budgetary provisions. 
Georgia is in between an early stage and some level of preparation regarding regional policy 
and  coordination  of  structural  instruments.  It  has  some  level  of  preparation  in  food  safety, 
veterinary and phytosanitary policy and fisheries. Some progress was made in regional policy 
and limited progress in agriculture and rural development, with the amendment of the Law on 
agricultural  cooperatives.  No  progress  was  registered  in  fisheries  and  on  financial  and 
budgetary rules. More effort is needed to increase human and administrative capacity in the 
field of fisheries and aquaculture. It is also important to adopt the new regional development 
strategy and consider expanding its coverage to the whole country.  

In cluster 6, external relations, Georgia is moderately prepared. Limited progress was made 
on external relations, where Georgia is expected to align its legislation on export controls on 
dual use goods with the EU acquis. Limited progress was made on foreign, security and defence 
policy. In line with its long-standing policy, Georgia did not align with the EU’s restrictive 
measures (sanctions) regarding Russia, including airspace closure.  

In  the  area  of  Common  Foreign  and  Security  Policy,  following  Russia’s  war  of  aggression 
against Ukraine, Georgia has aligned itself with international and EU initiatives in support of 
Ukraine, including on Resolutions adopted by the UN General Assembly and Human Rights 
8 

 
 
Council and the Council of Europe. Georgia did not align with the EU’s restrictive measures 
against Russia and Belarus nor with the related statements by the High Representative on behalf 
of the EU.  Georgia’s alignment with  EU statements and Council decisions under the CFSP 
remained largely the same (44% in 2022, 43% in August 2023). 

Georgia is expected to considerably increase its alignment rate with EU statements and Council 
decisions under the CFSP. Georgia has shown active engagement in ensuring that the territory 
of  Georgia  and/or  legal  entities  registered  in  Georgia  are  not  used  to  circumvent  these 
sanctions, including sanctions in the financial sector.  

1.3. ASSESSMENT  OF  THE  IMPLEMENTATION  OF  THE  12  PRIORITIES  IN  THE  COMMISSION'S 

OPINION 

Priority  1:  address  the issue  of  political  polarisation,  through  ensuring cooperation  across 
political parties in the spirit of the April 19 agreement. 

Most  Members  of  Parliament  have  ended  their  boycott  of  Parliament  and  a  few  laws  were 
passed with  cross-party  support. Regular ministers’ question times take place in  Parliament 
with  attempts  aiming  to  start  cross-party  discussion  notably  on  EU-path  related  reforms.  
Parliament  voted  against  impeaching  the  President  of  Georgia.  The  use  of  harsh  rhetoric 
continues with incidents of disinformation regarding the EU.  

Cooperation,  compromise-building  and  inclusive  consultations  with  opposition  parties  and 
civil society, notably with regards to reforms that relate to Georgia’s EU agenda, should be 
further  pursued.  All  parties  and  stakeholders  should  build  on  the  broad  consensus  towards 
Georgia’s European path in line with the will of the vast majority of Georgian citizens.  

Priority  2:  guarantee  the  full  functioning  of  all  state  institutions,  strengthening  their 
independent  and  effective  accountability  as  well  as  their  democratic  oversight  functions; 
further  improve  the  electoral  framework,  addressing  all  shortcomings  identified  by 
OSCE/ODIHR and the Council of Europe/Venice Commission in these processes”. 

Amendments to the rules of procedure strengthened parliamentary oversight functions and led 
to increased ministerial hearings.  The use of these oversight prerogatives should be enacted 
including  by  enabling  the  setting  up  of  parliamentary  investigative  committees  and  the 
participation  of  opposition  parties  in  the  “trust  group”  overseeing  the  security  services. 
Parliament adopted, in an expedited manner and by later overruling a veto by the President, 
amendments  on  the  functioning  of  the  National  Bank  of  Georgia  which  raised  concerns  in 
relation to the Bank’s independence. The Government adopted a public administration reform 
strategy and an action plan. Investigations into the large-scale wiretapping revealed in 2021 are 
still outstanding. Georgia should ensure effective parliamentary oversight, notably of security 
services, and independence and impartiality of its key institutions.  

The  electoral  code  and  the  law  on  political  associations  were  amended  to  align  with  some 
Venice Commission  and ODIHR recommendations and with  support from  some opposition 
MPs.  Parliament  later  voted  to  reverse  the  amendments  to  the  Electoral  Code  changing  the 
appointment procedure of the Central Election Commission chairperson and overriding a veto 
by the President. Georgia sent these amendments to the Venice Commission for consultation 
in  September  2023.  Georgia  should  address  key  ODIHR/VC  recommendations  from  past 
elections,  on  intimidation  and  abuse  of  administrative  resources  and  should  address  the 
recommendations in the upcoming Venice Commission opinions in a timely manner, before 
the next elections take place.  

Priority 3: adopt and implement a transparent and effective judicial reform strategy and action 
9 

 
 
plan post-2021 based on a broad, inclusive and  cross-party consultation  process;  ensure a 
judiciary that is fully and truly independent, accountable and impartial along the entire judicial 
institutional  chain,  also  to  safeguard  the  separation  of  powers;  notably  ensure  the  proper 
functioning  and  integrity  of  all  judicial  and  prosecutorial  institutions,  in  particular    the 
Supreme Court and address any shortcomings identified including the nomination of judges at 
all levels and of the Prosecutor-General; undertake a thorough reform of the High Council of 
Justice and appoint the High Council’s remaining members. All these measures need to be fully 
in line with European standards and the recommendations of the Venice Commission”. 

Non-judge members of the High Council of Justice (HCJ) were elected. Parliament adopted 
amendments to the Law on Common Courts in June 2023 and drafted additional amendments 
in September 2023, addressing some of the Venice Commission key recommendations. The 
June amendments addressed one key recommendation - the procedure for suspension of judges 
from office, and some additional issues. The Venice Commission opinion acknowledged that 
if the draft September amendments were to be adopted, one other key recommendation would 
be  addressed,  namely  the  restriction  of  the  grounds  of  judge’s  disciplinary  liability.  The 
amendments  did  not  address  the  core  recommendations  of  repeated  Venice  Commission 
opinions, regarding a comprehensive reform of the HCJ and regarding the Supreme Court. In 
particular, these relate to the functioning and powers of the HCJ, including on the mandate of 
the members of the HCJ, the transfer of judges without their consent and an effective right of 
appeal in the selection of Supreme Court judges.  

Georgia  should  still  pursue  a  holistic  and  effective  reform  of  the  judicial  system  to  ensure 
effective  independence,  accountability  and  impartiality  of  all  judicial  and  prosecutorial 
institutions  with  thorough  reform  of  the  High  Council  of  Justice.  Draft  constitutional 
amendments on the Prosecutor General’s appointment should be adopted.   

Priority 4: strengthen the independence of its Anti-Corruption Agency bringing together all 
key anti-corruption functions, in particular to rigorously address high-level corruption cases; 
equip  the  new  Special  Investigative  Service  and  Personal  Data  Protection  Service  with 
resources commensurate to their mandates and ensure their institutional independence.  

Parliament passed legislation establishing an Anti-corruption Bureau to oversee and coordinate 
Georgia’s  anti-corruption  policy  and  draw  up  recommendations.  The  Bureau  was  granted 
powers to  monitor asset declarations and party financing  and to  adopt  recommendations  on 
whistle-blower protection. The Prime Minister appointed the head of the Bureau for a term of 
six years. Georgia withdrew from the OECD anti-corruption network. The EU has requested 
Georgia to repeal the decision of February 2023 to withdraw from the OECD anti-corruption 
monitoring network for Eastern Europe and Central Asia (OECD/CAN) and fully implement 
recommendation from the previous rounds. Parliament adopted legislation, strengthening the 
investigative authority of the Special Investigative Service and social protection benefits of the 
Personal Data Protection Service personnel. Outstanding 2022 ODIHR recommendations on 
the appointment and dismissal of the Head of Service should be addressed. Georgia should also 
review the legislation on the Anti-Corruption Bureau, the Special Investigation Service and the 
Personal Data Protection Service addressing upcoming Venice Commission recommendations.  

Priority  5:  implement  the  commitment  to  “de-oligarchisation”  by  eliminating  the  excessive 
influence of vested interests in economic, political, and public life. 

The  draft  law  on  de-oligarchisation  envisaging  a  “personal”  approach  was  voted  down  by 
Parliament. The government adopted an amended action plan on de-oligarchisation. The action 
plan builds on prior Venice Commission recommendations to follow a “systemic” approach,  
with a focus on the fight against corruption, public procurement, competition policy, justice 
10 

 
 
reform,  the  fight  against  money  laundering,  financing  of  political  parties  and  media;  the 
amendments strengthened its implementation with clearer timelines.  

Georgia should continue developing and improving the de-oligarchisation action plan to ensure 
that all key areas are adequately addressed with effective measures and with clear institutional 
arrangements.  Efficient  implementation  of  the  plan  should  lead  to  building  a  tangible  track 
record. An inclusive and robust mechanism for coordinating and monitoring should swiftly be 
put in place allowing also to timely review and complement the plan whenever needed.  

Priority 6: strengthen the fight against organised crime based on detailed threat assessments, 
notably  by  ensuring  rigorous  investigations,  prosecutions  and  a  credible  track  record  of 
prosecutions  and  convictions;  guarantee  accountability  and  oversight  of  law  enforcement 
agencies. 

The Government adopted the 2023-2024 Action Plan for the National Strategy of Fight against 
Organised Crime. Georgia stepped up its cooperation with Europol and the Member States. 
Parliament consulted NGOs and sent 76 recommendations on fight against organised crime, 
cybercrime, human trafficking, money laundering, terrorism financing and drug-related crimes 
to  relevant  executive  agencies  for  implementation.  The  Government  adopted  a  Report  on 
Money Laundering and Terrorism Financing Assessment Risks in Georgia on 3 October 2023. 
Addressing recommendations of the Council of Europe’s Moneyval needs to continue.  

Priority  7:    undertake  stronger  efforts  to  guarantee  a  free,  professional,  pluralistic  and 
independent media environment, notably by ensuring that criminal procedures brought against 
media  owners  fulfil  the  highest  legal  standards,  and  by  launching  impartial,  effective  and 
timely  investigations  in  cases  of  threats  against  safety  of  journalists  and  other  media 
professionals. 

An opposition TV Director was released from prison following a presidential pardon. Georgia 
has adopted amendments to the Law on Broadcasting to address the core principles of the EU’s 
Audiovisual  Media  Service  Directive  (AVMSD)  notably  the  issues  of  non-incitement  to 
violence  and  hatred  and  the  protection  of  minors.  Georgia  should  continue  work  towards 
ensuring the effective independence of the media regulator (Georgian National Communication 
Commission)  and  build  trust  with  the  media  sector.  A  first  proposal  to  strengthen  its 
independence is under discussion. Georgia should investigate and prosecute cases of threats 
against safety of journalists and other media professionals. 

Priority  8:  move  swiftly to  strengthen  the  protection  of  human  rights  of  vulnerable  groups, 
including by bringing perpetrators and instigators of violence to justice more effectively.  

A National Human Rights Strategy was adopted. Civil society and international organisations 
submitted comments notably to strengthen protection of all vulnerable groups. A draft National 
Action Plan is being prepared with civil society consultations launched on 1 November 2023. 
The main 2023 Pride event had to be cancelled, due to far-right groups disrupting the festival. 
On 5 October 2023, the Georgian Parliament adopted amendments to the Law on Assemblies 
following an expedited procedure, without prior consultations. Civil society organisations and 
the Public Defender expressed concerns with  this Law and the President vetoed it. Georgia 
should further the investigations against the instigators of the violence during the 2021 Pride 
event.  Georgia  should  complete  the  National  Action  Plan  for  Human  Rights  Protection 
following  the  consultation  process  just  launched,  which  needs  to  be  inclusive,  and  start  its 
implementation. 

Priority 9: consolidate efforts to enhance gender equality and fight violence against women. 

11 

 
 
In a very inclusive process, Parliament adopted a package of draft laws related to compliance 
with the Istanbul Convention, mandatory Gender Impact Assessment for all legislative acts and 
several amendments regulating the fight against violence against women. The State Concept 
on  Economic  Empowerment  of  Women  was  approved  and  the  validity  of  gender  quotas  in 
Parliament extended until elections in 2032. This priority is completed.  

Priority 10: Civil society ensure the involvement of civil society in decision-making processes 
at all levels 

Civil society representatives were invited to participate in the work on the 12 priorities. Civil 
society  organisations  (CSOs)  could  attend  meetings  and  put  questions  to  Public  Defender 
candidates.  In  March,  a  draft  law  creating  a  registry  for  “agents  of  foreign  influence”  was 
adopted by Parliament and later withdrawn following large protests. In July and September, 
the  ruling  party  held  inclusive  conferences  on  the  implementation  of  12  priorities  with 
opposition and civil society organisations, in a move to resume constructive engagement with 
civil society, including on the EU integration process. A Memorandum on cooperation between 
the Parliament of Georgia and the Georgian National Platform of the Eastern Partnership Civil 
Society Forum was signed in October 2023. Structured engagement and dialogue with civil 
society at all levels, including with government, regional and local authorities, requires further 
strengthening to ensure CSOs can effectively and meaningfully engage in policy and decision-
making. Georgia should also refrain from adopting measures which could hamper or restrict 
meaningful participation of civil society in such processes. 

Priority 11: adopt legislation so that Georgian courts proactively take into account European 
Court of Human Rights judgments in their deliberations.  

Parliament adopted a legal package on legislative mechanisms ensuring reference to European 
Court  of  Human  Rights  (ECtHR)  decisions  by  Georgia’s  courts,  facilitating  access  to  such 
decisions  and  supporting  the  professional  development  of  judges,  prosecutors  and  defence 
lawyers in that regard. All parties supported the legislation and voted in favour. This priority 
is completed. 

Priority 12: ensure that an independent person is given preference in the process of 
nominating a new Public Defender (Ombudsperson) and that this process is conducted in a 
transparent manner; ensure the Office’s effective institutional independence. 

A new Public Defender was appointed in February 2023 with votes from opposition MPs. The 
Public Defender’s Office operates with a high level of credibility in the Georgian society. This 
priority is completed. 

2.  CLUSTER 1: FUNDAMENTALS OF THE ACCESSION PROCESS  

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM  

2.1.1. Democracy 

Overall, the legislative framework, institutional setup and vibrant civil society provide Georgia 
with a good level of preparation for further democratic and rule-of-law reforms. This level of 
preparation was negatively affected in practice by the country’s deep political polarisation, the 
lack  of  effective  cross-party  cooperation  on  both  the  reform  agenda  and  parliamentary 
oversight, as well as several instances of malpractice in the context of elections which were not 
effectively investigated.  

12 

 
 
 
The  government  agreed  to  undertake  further  reforms  under  the  EU-Georgia  Association 
Agenda. Nevertheless, a number of key measures remain to be adopted during the reporting 
period. Lack of cross-party consensus hampered legislative work, such as furthering judicial 
reform. 

Elections   

Overall, the electoral framework is in line with relevant international standards.  

In  December  2022,  Parliament  adopted  amendments  to  the  Election  Code  with  multiparty 
support,  some  of  which  were  in  line  with  previous  OSCE/ODIHR  recommendations.  The 
amendments did not address some of the key outstanding OSCE/ODIHR recommendations.  

The  latest  amendments  to  the  Election  Code  adopted  in  June  2023  are  not  in  line  with  the 
Commission  opinion’s  priority  2c  nor  with  numerous  recommendations,  since  they  give  a 
simple  majority  of  Parliament  members  unilateral  power  to  appoint  the  Central  Election 
Commission (CEC) Chair and CEC non-party members, with no effective involvement of other 
institutions, including the President. Additional draft amendments to the Election Code were 
sent to the Venice Commission for opinion in September 2023.  

Parliamentary  elections  are  approaching  in  2024  and  the  Parliament  has  yet  to  elect  a 
permanent Central Election Commission (CEC) Chair and two CEC professional members. A 
need for comprehensive electoral reform remains. 

Overall, the electoral framework is in line with relevant international standards enshrined in 
the  International  Covenant  on  Civil  and  Political  Rights  (ICCPR)  and  other  international 
human  rights  conventions  such  as  the  Convention  on  the  Elimination  of  all  Forms  of 
Discrimination against Women (CEDAW) and the Convention on the Rights of Persons with 
Disabilities  (CRPD).  Further  constitutional  amendments,  complementing  those  adopted  in 
2018 and 2020 and envisaged by the 19 April agreement, are pending in Parliament.  

The  term  of  the  Central  Election  Committee  (CEC)  Chairperson,  who  had  been  elected  by 
simple majority for 6 months, expired in  August 2022. Since then, Parliament has failed to 
elect a new CEC Chairperson.  

In December 2022, Parliament adopted amendments to the Electoral Code and to the Law on 
political associations of citizens, with cross-party support. The initial parliamentary process on 
this reform did not meaningfully involve opposition parties and civil society organisations on 
the substance, though later work in the committee and plenary was more inclusive. Some of 
the changes envisioned by the amendments are in line with previous recommendations by the 
OSCE/Office for Democratic Institutions and Human Rights (ODIHR). The amendments also 
envisage the widespread use of electronic technologies which is broadly  supported by most 
political parties. The proposed amendments were not based on a comprehensive review of the 
Electoral Code and only addressed a selection of issues.  

Some issues raised by ODIHR in past observations were recalled in the Joint Opinion of the 
Venice Commission  and  OSCE/ODHIR issued in  December 2022 and remain unaddressed. 
These include the delimitation of electoral districts, changes to the media campaign regulations 
and preventive measures against the intimidation of voters.  

In  June  2023  Parliament approved  amendments  to  the  Electoral  Code  and  the  Rules  of 
Procedure. Parliament overruled the President’s veto on the amendments on 3 July. The revised 
procedure overrides the stipulations in the 19 April agreement, with the Chairperson and seven 
members  of  the  Central  Election  Commission  (CEC)  to  be  nominated  for  election  by  the 
Speaker  of  Parliament,  instead  of  the  President.  Parliament  will  elect  the  Chairperson  and 
13 

 
 
members of the CEC by a majority of votes from the entire composition (76 votes, as opposed 
to the current rule requiring 100 votes). Additional draft amendments to the Election Code were 
sent to the Venice Commission for opinion in September 2023.  

Investigations into reports of intimidation, vote-buying and pressure on candidates and voters 
have so far not led to prosecutions or convictions. In July 2022, the Office of the Prosecutor 
General launched an investigation following the publication of documents pointing to possible 
cases of large-scale electoral malpractice, including vote-buying by civil servants and pressure 
on voters involving the security services. This has not so far led to criminal prosecutions against 
any individual.  

No nationwide elections were held during the reporting period. By-elections were held on 1 
October 2022 in Senaki municipality and on 29 April 2023 for a parliamentary seat in Poti-
Senaki-Khobi and for several local positions. For the first time, electronic technologies were 
used on a large scale (at 117 out of 165 polling stations). The Central Election Commission 
(CEC) reported that small technical errors occurred at several electoral precincts but that these 
errors were promptly eliminated and did not impede the voting process. 

As regards women’s participation in elections, following the introduction of gender quotas 
for parliamentary elections, 27 out of the current 139 MPs are women. Still, women remain 
under-represented in public office.  

Parliament 

Parliament led the efforts to address the 12 priorities in the European Commission opinion. 
However,  this  effort  was  adversely  affected  by  the  deep  political  polarisation  and  limited 
inclusivity of opposition on the substance of the reforms.  

Not all parliamentary procedures function effectively in the spirit of control and accountability, 
mostly  due  to  strong  tensions  between  the  ruling  party  and  opposition  parties.  The  EU-
mediated 19 April agreement (2021) provided an opportunity to tackle this deep polarisation 
and forge a cross-party consensus on crucial reforms, particularly in the electoral and judicial 
fields. More needs to be done to reduce polarisation and improve Parliament’s oversight and 
control over the government and effective scrutiny of legislative implementation. 

During the reporting period, substantive cross-party work in Parliament was limited due to (i) 
a lack of genuine inclusion of the opposition by the ruling party in drawing up legislation and 
(ii)  on-and-off boycotts by parts of the opposition, notably the United National  Movement  
party. Opposition parties argue that most of their legislative proposals are not scheduled for 
debate or included as part of draft laws. Elements from the 19 April agreement are still pending 
implementation. Key topics of political tension related to issues such as the deteriorating health 
of former President Mikheil Saakashvili and, in March 2023, the initial support by the ruling 
party for a ‘foreign agents’ draft law. Nevertheless, increasingly during the reporting period, 
most Members of Parliament have returned to Parliament.  

There were good examples of cross-party cooperation and votes. Parliament established several 
working groups to address the 12 priorities. It also managed to elect a new Public Defender in 
March 2023. In May, Parliament elected three new non-judge members in the High Council of 
Justice (part of priority 3). Two non-judge members remain to be elected.    

The emergency procedure to pass legislation, including in areas relevant to EU commitments, 
is regularly used and, at times, for issues that are perceived to be institutionally sensitive. There 
is a legal framework providing for comprehensive impact assessments of proposed legislation, 
but it is only partially implemented. 

14 

 
 
Amendments  to  the  Parliament’s  rules  of  procedure  were  adopted  in  November  2022  to 
increase the level of parliamentary oversight to some extent. Oversight over security services, 
including through the ‘trust group’ in Parliament, remains limited, with only three MPs from 
the ruling majority participating in the meetings. One of the key instruments for parliamentary 
oversight is the ability to set up parliamentary investigative commissions with a low threshold 
of  50  votes,  which  the  opposition  can  gather  alone.  In  April  2023,  the  ruling  party  used 
procedural means to prevent the opposition from setting up such a commission to investigate 
allegations of corruption in the judiciary, following visa restrictions on four judges by the U.S. 
Department of State. The ruling party used the same procedural means to prevent the opposition 
from creating an investigative commission over the ‘case of call centres’. 

Governance  

There  was  overall  limited  progress  during  the  reporting  period  in  strengthening  good 
governance.  The  Parliament  took  an  active  role  in  implementing  the  12  priorities.  The 
government  continued to  declare that EU membership is  its strategic goal  and promoted  its 
European agenda. The President vetoed several laws.  

In  April  2023,  the  Government  approved  the  action  plan  for  EU  integration  of  Georgia  for 
2023, including the activities to be carried out in 2023, expected outcomes, timeframes and 
sources of funding. The Prime Minister chaired the EU Integration Commission.  

The  relationship  between  the  President  and  the  government  or  the  ruling  party  has  been 
increasingly  challenging.  The  President  vetoed  legislation  several  times,  a  veto  which  the 
Parliament  has  overruled  in  several  instances.  On  14  September  the  ruling  party  filed  a 
complaint  with  the  Constitutional  Court  initiating  impeachment  proceedings  against  the 
President.  Following the Constitutional Court decision on 16 October 2023, Parliament voted 
against impeaching the President. 

Commitments to strengthen local governance and municipal services are included in the 2020–
2025 decentralisation strategy, the public administration reform strategy and action plan, and 
the  2030  national  development  strategy-vision.  In  December  2022,  the  Parliament  adopted 
amendments  to  the  Local  Self-Government  Code,  to  allow  the  government  to  prematurely 
terminate the mandate of a city council if it fails to adopt the municipal budget within the first 
3 months of the year.  

Political  culture  for  multi-party  dialogue  and  coalition  governance  at  local  level  is  limited, 
leading to deadlocks in councils where the ruling party at national level does not also have the 
majority at local level.  Participatory mechanisms for engaging civil society organisations and 
citizens in local decision-making process are codified in the Local Self-Government Code. The 
enforcement of the Code is uneven and differs widely across the municipalities. Only three out 
of 64 municipalities have female mayors (Rustavi, Dusheti and Ninotsminda, 4.7%). 

Civil society  

Georgia does not  yet  have a comprehensive government  strategy in  place for supporting  or 
cooperating with civil society. Mechanisms for consultation with civil society in policy making 
and  law  making  exist  both  at  central  and  municipal  level.  Parliament  invited  civil  society 
organisations  (CSOs)  to  participate  in  the  working  groups  on  the  12  priorities.  With  some 
exceptions, these organisations were able to attend meetings and actively participate, although 
their  input  was  rarely  included  in  draft  legislation  or  appointment  processes.  A  dedicated 
mechanism for public online consultations or contributions for draft laws or policy documents 
is currently lacking. 

15 

 
 
Civil  society  in  Georgia  is  well  developed,  diverse  and  vibrant  and  continues  to  enjoy  the 
freedom  to  operate,  albeit  in  an  increasingly  hostile  environment.  The  legal  framework 
remains  conducive  to  an  active  civil  society,  due  to  streamlined  registration  and  reporting 
requirements, the existence of a differentiated tax regime, and the absence of limitations on the 
freedom of association and the freedom to operate. 

There is some level of involvement of CSOs in policy dialogue. Parliament invited CSOs to 
participate  in  the  working  groups  on  the  12  priorities,  during  the  reporting  period,  and 
particularly in the first months of 2023. At the same time, certain CSOs have been increasingly 
excluded  from  policy  consultation  and  some  have  withdrawn  from  consultation  forums. 
Following the proposal and subsequent withdraw of the ‘foreign agents’ law, not all member 
organisations  of  the  Consultative  Group  of  the  Permanent  Parliamentary  Council  of  Open 
Governance,  which had suspended their membership in March 2023, returned. In September 
2023 the Speaker of the Parliament  took up the chairmanship of the Permanent Parliamentary 
Council  on  Open  Governance.  A  dedicated  mechanism  for  public  online  consultations  or 
contributions  for  draft  laws  or  policy  documents  is  currently  lacking.  Draft  legislation  is 
available online. 

The  enabling  environment  has  increasingly  come  under  attack  through  hostile  rhetoric  by 
political  leaders  and  radical  groups  and,  intermittently,  through  draft  legislation  that  would 
have  labelled  CSOs  who  receive  foreign  funding  as  ‘foreign  agents’  and  subjected  them  to 
possible penalties for non-compliance, including criminal prosecution. On 7 March 2023, the 
ruling majority passed one of the draft laws its first reading. This prompted condemnation from 
large segments of Georgian society and led to large demonstrations on 7 and 8 March. As a 
consequence, the parliamentary majority effectively withdrew the draft law on 10 March, in a 
second  reading,  by  abstaining  from  voting.  Opposition  parties  voted  in  favour  of  this 
withdrawal.  

Mechanisms for consulting the public on policy-making and law-making exist at both central 
and municipal level. However, meaningful utilisation of these mechanisms is uneven and varies 
based on the sensitivity of the subject and institutions. The primary institutionalised mechanism 
for state-CSO cooperation, aimed at increasing public accountability and transparency, is the 
Open  Government  Partnership  (OGP).  Georgia  has  a  progressive  legislative  framework  for 
OGP coordination and CSO engagement. However, it has not  adopted national  OGP action 
plans since 2019, for two consecutive cycles. The country is  currently under review by the 
OGP based on two consecutive procedures: Procedural Review – for failing to adopt an action 
plan for two consecutive cycles – and Response Policy Procedure, initiated on the basis of a 
letter of concern from a CSO.  

Also, Georgia does not yet have a comprehensive government strategy in place for supporting 
or cooperating with civil society. Parliament has not made progress in adopting the state plan 
for supporting the development of CSOs, initiated during the previous parliamentary term.  

The enabling  financial environment for CSOs is largely  in  place, but  a framework for the 
transparent and objective distribution of public money, including municipal funds, needs to be 
introduced. Public funding for CSOs is available, but is not fully developed and is distributed 
unevenly. The majority of CSOs, in particular at local level, are dependent on funding from 
foreign donors, and other means for ensuring their financial sustainability (e.g. crowdfunding, 
donations) are not well developed. Volunteering is legally regulated and strategic documents 
envisage specific steps to promote volunteering culture, especially among young people. The 
culture of volunteering in Georgia remains weak, due to a lack of legislative incentives, a dearth 
of diverse volunteering opportunities and a low level of public awareness about volunteering 
activities. 

16 

 
 
Civilian oversight of the security and intelligence sector  

In addition to the Parliament’s oversight  role, a number of other institutions have oversight 
powers over the security sector. The rules and procedures covering civilian oversight are well 
defined  in  the  respective  legislative  framework.  In  practice,  the  conduct  of  oversight  faces 
shortcomings  due  to  institutional  reticence,  the  weakening  of  the  state  inspection  bodies  in 
2022 (see above), the limited participation of opposition MPs and decreasing involvement of 
civil society.  

Since the end of 2022, the earlier practice of dialogue with selected civil society organisations 
during  the  preparation  of  strategic  documents  has  ceased.  The  Parliament’s  Security  and 
Defence Committee does not consistently engage in dialogue and exchange with civil society 
organisations. 

To  date,  there  has  been  no  effective  investigation  into  the  September  2021  leak  of  a  large 
number of wiretapping recordings. The Prosecution is still waiting for the results of internal 
investigations within the State Security Service, and there have been no prosecutions to date. 
The Parliament amended the Criminal Procedure Code to allow for covert investigative actions 
in  more  cases  and  for  longer  periods.    Oversight  bodies,  CSOs  and  the  international 
organisations,  including  the  Venice  Commission,  have  voiced  concerns  in  respect  of  these 
issues. 

2.1.2. Public administration reform 

Overall, Georgia is moderately prepared in the area of public administration reform (PAR). 
Some progress has been achieved with the preparation and adoption of the PAR and public 
finance management strategies and related actions plans. Georgia’s civil service presents some 
fragmentation, limited standardisation and would benefit from a more comprehensive vision 
on digital transformation.  

Efforts  need  to  be  maintained  to  ensure  a  stable,  accountable  and  transparent  civil  service 
system.  

In the coming year, Georgia should in particular:  

→  revise  the  legislation  on  the  legal  entities  of  public  law  to  reduce  the  number  of  legal 
entities, classify them by functional criteria, and ensure that those with executing authority 
belong to the civil service; 

→  strengthen  the  legal  mandate  and  capacity  of  the  Administration  of  Government  to 
coordinate  the  operations  of  the  ministries;  strengthen  the  mandate  of  the  Civil  Service 
Bureau for standardisation, monitoring and scrutiny, beyond its advisory role;   

→  review  the  legal  framework  to  effectively  guarantee  citizens’  right  to  access  to  public 

information.  

Strategic framework for public administration reform 

After  a  two-year  gap,  the  government,  in  consultation  with  relevant  public  stakeholders, 
elaborated  a  new  public  administration  reform  (PAR)  strategy.  The  new  strategy  and  its 
action plan were adopted on 16 February 2023. It covers all PAR areas, except public finance 
management (PFM), which is covered by a separate strategy. The strategy mostly focuses on 
further  implementation  of  previous  reforms,  with  some  bottlenecks  such  as  public 
administration fragmentation, limited standardisation in civil service and lack of a clear vision 
for digital transformation. 

Policy development and coordination  

17 

 
 
The institutions and the regulatory framework for central government policy development and 
coordination  are  in  place  and  are  functioning  well.  The  Administration  of  Government  of 
Georgia together  with  the Ministry of  Finance,  Ministry of Justice and  Ministry of Foreign 
Affairs (for European integration) performs all expected functions of the centre of government. 
It includes effective policy coordination among these institutions. 

A handbook supporting the rules of procedure for development, monitoring and evaluation of 
policy  documents  provides  the  regulatory  and  procedural  foundation  for  evidence-based 
policy making. This framework needs to be enforced by further strengthening the capacity and 
implementation of policy monitoring, both in ministries and in the centre of government. The 
implementation of the system of regulatory impact assessments has not been fully incorporated 
into the decision-making process to improve the evidence behind adopted government policies. 
A ‘Gender Impact Assessment’ on Georgia’s Public Service Law was conducted. 

Public financial management 

Significant  progress  was  made  in  terms  of  PFM.  The  government  drafted  a  comprehensive 
PFM strategy in December 2022, which was adopted on 23 May 2023. The strategy is based 
on  the  Public  Expenditure  and  Financial  Accountability  (PEFA)  2022  Assessment  and  was 
published for stakeholder consultations online. The PFM action plan is prepared on a yearly 
basis and is monitored through quarterly reports.  

Significant progress has been achieved in terms of transparency of public finances in line with 
international standards. In the 2021 Open Budget Survey, published online in 2022, Georgia 
ranked  first  in  the  world  in  terms  of  state  budget  transparency  (Open  Budget  Index). 
Transition to a fully automated VAT refund system has been ensured, which is an important 
step in terms of both tax reform and business. 

Improvements  are  still  needed  in  fiscal  risk  reporting;  public  assets  and  investment 
management; annual financial reports; fiscal strategy and revenue administration. Reforms in 
these areas will bring Georgia even closer to best international and EU practice. 

Public service and human resources management  

The  public  service  and  human  resources  management  is  based  on  a  coherent  legal 
framework. Constant efforts are needed to further strengthen a merit-based, professional civil 
service at all levels of the administration, as well as transparent recruitment, promotion and 
dismissal procedures. 

In 2022, women represented 33 % of the civil servants, and 43% of middle or high managerial 
position. Only 13% of heads and deputy heads of public institutions were women (2021 data: 
33%, 41% and 16%). 

A new Head of the civil service bureau was appointed in September 2022. The Civil Service 
Bureau is a crucial institution for managing the civil service, developing policies and drafting 
legislation.  Being  a  legal  entity  of  public  law  (LEPL),  it  has  no  authority  to  enforce  the 
application of the regulations or standardise practices. The PAR  strategy and its 2023-2024 
action  plan  include  measures  aimed  at  reinforcing  the  bureau’s  accountability  towards  the 
Public Service Council. As the council is only an advisory body, the political responsibility for 
the  public  service  is  not  attributed  clearly.  This  continues  to  hamper  the  comprehensive 
implementation of public service reforms.  

The legislation regulates the basic features of recruitment of civil servants. The main principles 
related to merit are clearly stated. Mobility, promotions and disciplinary procedures are well 
regulated according to good international practices. The provisions related to termination and 

18 

 
 
demotion largely meet EU standards. There is no defined ‘senior civil service’ in the Georgian 
system that could properly delineate the civil service from the political sphere. The fact that all 
human resources  decisions are made by the ministers or deputy  ministers, instead of senior 
civil servants, increases the risk of politicisation of the civil service and overburdens ministers 
with daily work routines.  

Accountability of administration  

Overall,  the  central  government  is  coherently  organised  and  the  legal  framework  is  being 
improved  to  ensure  efficient  and  effective  accountability  lines  between  supervisory  and 
subordinated bodies.  

Some  shortcomings  of  the  public  service  at  horizontal  level  are  present.  There  are  a  high 
number  of  institutions,  or  LEPLs,  which  develop  and  implement  government  policies  and 
whose staff are not covered by the public service legislation.  The legislation on the LEPLs, 
therefore, needs to be revised to reduce the number of legal entities, classify them by functional 
criteria, and ensure that those with executing authority belong to the civil service. 

Implementation  of  the  citizens’  right  to  good  administration  can  differ  among  various 
government institutions, in terms of length of proceedings, impartiality and substantiation of 
decision-making.  Public  Defender’s  Office  and  State  Audit  Office  are  key  institutions 
monitoring  enforcement  of  this  right;  however,  their  recommendations  are  not  consistently 
implemented.  

Georgian  constitution  guarantees  citizens’  right  to  seek  full  compensation  for  damages 
inflicted  by  unlawful  actions  or  omissions  of  the  public  administration  through  court 
procedures, however, excessive length of the judicial proceedings in cases of administrative 
disputes (529 days in 2022) is hampering the effective judicial control over the citizens’ right 
to  good  administration,  as  well  as  right  to  seek  compensation.  The  length  of  judicial 
proceedings needs to be reduced.  

Access  to public information  is ensured by the legal framework. Its enforcement is mixed 
across  various  government  institutions.  The  long-awaited  review  of  the  overall  framework 
needs  to  be  carried  out  to  enhance  the  administrative  capacity  for  effective  enforcement. 
Publication of information – including publishing monitoring and activity reports – is uneven 
and needs to be significantly improved. The legal framework to effectively guarantee citizens’ 
rights to access to public information should be reviewed.  

Systematic implementation of recommendations by independent oversight bodies such as 
the State Audit Office and the Public Defender Office is yet to be achieved. In 2022, only 12% 
of the 334 recommendations issued by the Public Defender in its annual parliamentary report 
were fully implemented by authorities – 23.6% were partially implemented, 54.7% were not 
implemented and the remaining became irrelevant.  

Service delivery to citizens and businesses 

A  key  government  priority  is  to  ensure  a  more  user-oriented  service  delivery.  Georgia  is 
advanced in the provision of e-public services. Moreover, it has expanded the ‘one-stop shop’ 
network  of  public  services  at  central  and  local  level  for  services  that  cannot  be  provided 
electronically. 

With  the  2022-2025  public  services  development  strategy,  adopted  in  April  2022,  and  the 
recent 2023-2026 PAR strategy (including a pillar on public service delivery) the government 
has a strategic framework to focus on public services. Both strategies noted several gaps in 
public service design and delivery.  

19 

 
 
2.2 RULE OF LAW AND FUNDAMENTAL RIGHTS  

2.2.1.  Chapter 23 - Judiciary and fundamental rights  

The EU’s founding values include the rule of law and respect for human rights. An effective 
(independent,  high-quality  and  efficient)  judicial  system  and  an  effective  fight  against 
corruption are of paramount importance, as is respect for fundamental rights in law and in 
practice. 

Overall,  in  the  area  of  judiciary  and  fundamental  rights,  Georgia  has  some  level  of 
preparation. During the reporting period, limited progress was made overall.  

Functioning of the judiciary  

Georgia has some level of preparation in the area of the judiciary apply the EU acquis and 
European standards in this area. Overall, it has made limited progress.  

Four consecutive waves of reform prior to 2022 have improved the legal framework related to 
the functioning of the judiciary and the overall capacity and organisation of the justice system. 
Parliament adopted a judicial reform strategy and action plan. However, the strategy and action 
plan do not address key challenges in the justice system, in particular the need to strengthen 
the integrity of the highest judicial bodies. Some legislative changes were adopted, including 
on accessibility of court decisions, the quality of reasoning for judicial appointments and on 
increasing the professional experience requirement to 10 years for  the selection of Supreme 
Court nominees.   

In  June  2023  Parliament  adopted  amendments  to  the  Law  on  Common  Courts  and  drafted 
additional amendments in September 2023 implementing some of the Venice Commission’s 
recommendations.  However,  the  most  important  recommendations  of  the  European 
Commission and of the Venice Commission as stated in its consecutive opinions (of March 
2023  and  October  2023),  notably  regarding  reforming  High  Council  of  Justice  and 
recommendations regarding the Supreme Court were not addressed. Namely, further broader 
reforms  to  ensure  the  full  independence,  accountability  and  impartiality  of  all  judicial  and 
prosecutorial  institutions,  especially  the  HCJ  need  to  be  undertaken  in  line  with  European 
standards and the recommendations of the Venice Commission. In particular, improvements 
and additional safeguards concerning the functioning and powers of the HCJ are needed and 
an effective right of appeal for the selection of Supreme Court judges should be ensured by 
clarifying the binding nature of the Supreme Court decision for the HCJ. At the same time, the 
Venice  Commission  acknowledged  improvements  on  some  recommendations  including  the 
suspension of judges from office and restrictions of the grounds of judge’s disciplinary liability.  

A  broad  justice  reform  remains  outstanding.  In  particular,  reforms  to  ensure  the  full 
independence,  accountability  and  impartiality  of  all  judicial  and  prosecutorial  institutions, 
especially the Supreme Court, the Prosecutor General and the High Council of Justice (HCJ), 
need to be addressed. These reforms need to be undertaken, in line with European standards 
and the recommendations of the Venice Commission (Venice Commission).  

In the coming year, Georgia should: 

→  adopt  amendments  to  the  Law  on  Common  Courts  to  bring  it  fully  in  line  with  Venice 
Commission recommendations as regards the powers of the High Council of Justice (HCJ) 
concerning transfers and disciplinary proceedings of judges, and an effective right of appeal 
for appointments of Supreme Court judges.  

→  adopt a broader reform of the judiciary, in particular, reform the HCJ in line with Venice 
Commission recommendations. In particular, establish a system of extraordinary integrity 

20 

 
 
checks, with the involvement of international experts with  a decisive role in the process , 
for candidates and persons currently appointed to all leading positions in the judiciary, in 
particular  the  HCJ,  the  Supreme  Court  and  court  presidents.  Furthermore,  establish  a 
system  of  effective  permanent  and  periodic  asset  declarations  with  the  involvement  of 
international experts in an oversight and advisory function. 

→  adopt  the  draft  constitutional  amendments  which  include  changing  the  appointment 
procedure of the Prosecutor General from simple to qualified majority in Parliament; align 
the 
the 
recommendations of the Venice Commission, OECD and the TAIEX peer review on the 
functioning of the justice sector and the fight against organised crime.  

the  Prosecutor’s  Office  with  European  standards,  following 

law  on 

Strategic documents  

In  October  2022,  the  Georgian  Parliament’s  Legal  Affairs  Committee  published  its  judicial 
reform strategy and action plan. It lists 16 priorities, with a strong focus on efficiency measures, 
mostly related to the courts system, such as ensuring an optimal number of judges and other 
court  officials,  reducing  caseloads  by  promoting  alternative  dispute  resolution  channels, 
improving technical infrastructure, etc.  

The action plan also refers to improving the implementation of judgements by the European 
Court of Human Rights, strengthening the institution of trial by jury, improving the quality of 
reasoning accompanying court decisions, strengthening social protection guarantees for judges 
and increasing public communication, including on court decisions. However, the strategy and 
action  plan  do  not  address  key  challenges  in  the  justice  system  and  do  not  include  major 
strategic  items  (detailed  analysis  of  implementation  of  previous  reforms  and  remaining 
challenges,  sequence  of  actions,  timelines,  definition  of  responsible  bodies,  indicators, 
monitoring mechanism, etc.). 

Management bodies  

The High Council of Justice (HCJ) is the principal body managing the judicial system and the 
careers of judges. The Prosecutorial Council, the governing body for the prosecution, has a 
much more limited role in the management of the prosecution and the careers of prosecutors, 
which is largely in the competence of the Prosecutor General. Outstanding issues with regard 
to the composition, the functioning and powers of both bodies in line with European standards 
and Venice Commission recommendations, remain to be addressed. In addition, to ensure the 
independence, accountability and impartiality of the justice system, broader reform of judicial 
institutions remains to be prepared and adopted in line with European standards.  

Parliament  adopted  amendments  to  the  Law  on  Common  Courts  in  June  2023  and  drafted 
additional  amendments  in  September  2023  implementing  only  some  of  the  Venice 
Commission‘s  recommendations.  The  amendments    did  not  address  the  most  important 
recommendations  of  the  European  Commission  and  the  Venice  Commission  (opinions  of 
March 2023 and October 2023), such as the transfer of judges without consent, the need for 
further  reform  of  the  HCJ  including  balance  between  judge  and  non-judge  members  in 
decision-making, restricting re-appointment of HCJ members and ensuring staggered election 
of HCJ members, and ensuring an effective appeal in the selection procedure of the Supreme 
Court Judges by clarifying that the SC decisions are binding.  

The June amendments had addressed one key recommendation - the procedure for suspension 
of judges from office - and additional issues: limiting the grounds for withdrawal of a member 
of  the  HCJ;  clarifying  the  moment  when  disciplinary  proceedings  should  be  considered  as 
initiated;  facilitating  the  procedure  for  access  to  court  decisions.  In  addition,  the  Venice 
Commission  opinion  acknowledged  that  if  the  draft  September  amendments  were  to  be 
21 

 
 
adopted,  one  other  key  recommendation  would  be  addressed,  namely  the  restriction  of  the 
grounds of judge’s disciplinary liability based on the violation by a judge of the principle of 
“political neutrality”. These amendments are still to be adopted. 

Regarding the composition of the HCJ, in October 2022, two new judge members were elected 
to the HCJ. The speed, quality and level of transparency of this process were criticised by the 
EU, opposition parties and civil society. These appointments followed the election of a total of 
six judge members on 26 May and 31 October 2021, despite similar criticisms. For two years 
(from June 2021 until May 2023), the HCJ operated without five non-judge members, whose 
election requires a qualified majority (90 votes) in Parliament. In May 2023, three non-judge 
members were elected and the two remaining positions were filled in October 2023. 

The  appointment  process  for  the  Prosecutor-General  needs  to  be  improved  to  ensure  it  is 
transparent and based on criteria of integrity, independence, impartiality, and competence. In 
particular,  draft  constitutional  amendments  remain  to  be  adopted  to  introduce  a  qualified 
majority  vote  in  Parliament.  In  October  2022,  the  draft  constitutional  amendments  on  the 
Prosecutor General’s appointment passed first reading.  

The  power  to  nominate  a  candidate  for  the  position  of  Prosecutor  General  rests  with  the 
Prosecutorial Council. On 12 January 2023, the Prosecutorial Council unanimously elected 
its chair by secret ballot; there was only one candidate for the position. The recommendations 
of  the    OECD  fifth-round  monitoring  report  on  anti-corruption  reforms  and  Venice 
Commission opinions concerning the prosecution service remain to be addressed. This includes 
revising  the  composition  of  the  Prosecutorial  Council  to  ensure  a  better  balance  between 
prosecutor  and  non-prosecutor  members,  strengthening  the  internal  independence  of 
prosecutors by shifting certain powers concerning judges’ career from the Prosecutor General 
to  the  Prosecutorial  Council.  To  address  these  points,  a  comprehensive  set  of  legislative 
amendments taking into account existing recommendations should be prepared and adopted in 
consultation with the EU, the Venice Commission and relevant stakeholders. 

Independence and impartiality 

Some  work  has  been  done  to  improve  the  constitutional  and  legislative  frameworks  to 
guarantee the independence of the judiciary and its impartiality. The Law on Common Courts 
remains  to  be  aligned  with  European  standards,  as  outlined  in  the  section  concerning 
management  bodies.  Furthermore,  a  more  thorough  and  comprehensive  reform  of  the  High 
Council  of  Justice  (HCJ)  is  needed  as  recommended  above,  to  help  further  consolidate  the 
independence and impartiality of the judiciary, improve public trust and address the problem 
of  publicly  perceived  corporatism  and  problems  of  integrity  in  the  HCJ.  To  address  these 
systemic challenges, as  also raised by the Venice Commission in its October 2023 opinion, 
there  is  a  need  for  more  thorough  and  more  systematic  integrity  checks  in  line  with  best 
practices as established in the region, in consultation with the European Commission and the 
Venice Commission. Georgia could establish a system of extraordinary integrity checks with 
the  involvement  of  international  experts  with  a  decisive  role,  for  candidates  and  persons 
currently appointed to the leading positions in the judiciary, in particular the HCJ, the Supreme 
Court and court presidents. Furthermore, to safeguard the integrity of judicial office holders in 
the  long  term,  a  system  of  effective  permanent  and  periodic  asset  declarations  –with  the 
involvement  of  international  experts  in  an  oversight  and  advisory  function  -  should  be  
established.  

A system for the nominal random allocation of cases to judges is in principle in place. To 
reduce  numerous  exceptions  to  this  rule  (only  62%  of  cases  are  allocated  by  using  the 
automated case management system, the rest is distributed manually), more needs to be done 

22 

 
 
so that the allocation of cases is not subject to undue influence. Case assignments are processed 
through the computerised distribution of cases, via a random algorithm. Different reasons for 
reassigning a case include conflict of interest declared by the judge, recusal of the judge or a 
request from the parties, and physical unavailability (illness, longer absence).  

The Constitutional Court is a judicial body of constitutional control. In November 2022, the 
Constitutional Court partially satisfied the legal claim by the former State Inspector and the 
Public Defender against the Parliament, finding that the dismissal of the State Inspector and 
her deputies was not matched by providing either an adequate and equivalent position or fair 
compensation. There are several cases of high public interest which have been pending before 
the  court  for  a  significant  time,  including  for  instance  on  the  amendments  to  the  Law  on 
common courts as well as on the legislation regulating secret surveillance. The announcement 
of the related judgments is still pending. 

As  for  the  Prosecutor’s  Service,  the  external  independence  of  prosecutors  is,  in  principle, 
guaranteed by the Constitution and the Law on the Prosecutor’s Service. The Criminal Code 
(CC)  criminalises  any  form  of  unlawful  interference  with  the  activities  of  a  prosecutor  that 
disrupt the comprehensive, complete and objective investigation of a case.  

Regarding the internal independence of prosecutors including safeguards preventing undue 
interference by superiors, the law does not mention the obligation of the superior prosecutor 
(including the Prosecutor General) to provide instructions in written form; nor does it mention 
the right or duty of the subordinated prosecutor to draw attention to the (alleged) illegality of 
an  instruction  received.  Mechanisms  for  reviewing  the  legality  of  instructions  by  an 
independent  body  are  missing.  Furthermore,  the  Criminal  Procedure  Code  empowers 
prosecutors in management positions to remove subordinate prosecutors from an investigation 
and to assign their responsibilities to other prosecutors without any justification. The current 
legislative framework concerning internal independence of prosecutors must be revised to align 
with European standards, taking into account recommendations of the OECD, and the Venice 
Commission.   

Accountability 

The  High  Council  of  Justice  is  competent  to  initiate  and  conduct  disciplinary  proceedings, 
suspend  and  dismiss  judges.  The  position  of  an  Independent  Inspector  for  disciplinary 
proceedings has been established, however, the number of proceedings resolved in line with 
the recommendations of the inspector is rather low (around 30%). While some work has been 
done  to  align  the  legal  framework  on  the  disciplinary  liability  of  judges  with  European 
standards, further amendments are necessary in line with the recommendations of the Venice 
Commission.  

The legal framework on the disciplinary liability of prosecutors remains to be further aligned 
with  European standards, in  line with  the recommendations of the Venice Commission  and 
GRECO.  

Codes of ethics for judges and prosecutors are in place, as is a complaint mechanism. A system 
of  verification  of  asset  declarations  by  judges  and  prosecutors  exists,  but  its  practical 
implementation, including in terms of scope, needs improving. 

The recommendations in the Council of Europe’s Group of States against Corruption (GRECO) 
fourth  evaluation  round  suggested  widening  the  asset  declaration  regime  to  cover  all 
prosecutors. On 16 May 2023, the parliament adopted amendments to the Law on conflict of 
interest and corruption which extend the asset declaration regime to all prosecutors.  

Professionalism and competence  

23 

 
 
The system for recruiting, selecting, appointing, transferring, and dismissing judges in courts 
of first and second instance is managed exclusively by the HCJ. Presidents of individual courts 
are appointed by the HCJ. Supreme Court judges are selected and nominated by the HCJ and 
appointed by Parliament by simple majority.  

The legal provisions on appointing judges and prosecutors stipulate that the appointments must 
be largely based on merit and objective criteria, as assessed through public competitions. A 
substantive  reform  of  the  functioning  and  powers  of  the  HCJ  is  required  to  increase  its 
transparency,  integrity,  and  accountability,  including  concerning  its  competences  related  to 
appointments, appraisals, promotions, transfers, disciplinary measures and appeals, in line with 
European standards and the recommendations from the Venice Commission and ODIHR. 

One of the objectives of the judicial reform strategy and action plan is to increase the number 
of judges. Only eight out of 76 vacant positions for judges in district (city) courts and appeals 
courts were filled as a result of the latest competition.  More needs to be done to fill existing 
vacancies  with  qualified  candidates  that  demonstrate  the  required  integrity,  including  by 
attracting applications by ensuring that competitions are open and merit based. 

The  Prosecutor  General  appoints,  promotes,  releases  from  their  position  and  dismisses 
employees  of  the  Prosecutor’s  Office  according  to  criteria  for  recruitment  and  grounds  for 
discharging from office. The internal Career Management, Ethics and Incentives Council has 
an advisory role. The Prosecutor General thus has substantial discretion in the process.  

Quality of justice 

On transparency of the justice system, open access to reasoned court decisions in compliance 
with data protection rules has yet to be ensured. Based on judicial amendments adopted in June 
2023,  all  court  decisions  following  an  open  court  session  will  be  fully  available  on  formal 
freedom of information (FOI) requests. At the same time all court decisions will be published 
on a dedicated website in a depersonalised manner. In both cases the decisions will only be 
available after final resolution of the case, which can take years. This process remains to be 
brought in line with European standards and Venice Commission recommendations. 

The  Supreme  Court  publishes  annual  statistical  data  for  each  year  of  cases  in  the  common 
courts.  The  HCJ  publishes  activity  reports  covering  several  years.  An  integrated  case 
management  system  is  in  place  but  needs  to  introduce  a  statistical  element.  Court-related 
mediation procedures are available in Georgia.  

Judges are trained at the High School of Justice and prosecutors by the Training Centre of the 
General Prosecutor's Office. Training for judges should include case-based training on how to 
use  indirect  evidence,  especially  related  to  corruption  and  money  laundering  cases.    For 
prosecutors further training and exchange of best practices should be developed in the field of 
asset recovery and financial investigations. 

The number of judges in 2022 was 329, with 53.4% of them female, with only three female 
court presidents. The number of prosecutors in 2022 was 415, of which 33.7% were female. 
The number of staff is low compared to the European averages of 21 judges/12 prosecutors per 
100 000 inhabitants6 (9 judges and 12 prosecutors per 100 000 inhabitants). The allocated 2022 
budget for law courts increased to EUR 39.4 million and the implemented total budget was 
EUR 35.6 million (0.14% of GDP). 

Efficiency 

6 According to the Council of Europe European Commission for the Efficiency of Justice (CEPEJ). 

24 

 
 
 
As  to  the  length  of  court  proceedings,  the  disposition  time  in  civil  and  commercial  cases 
decreased to 257 days in 2022, compared to 433 days in 2020. For administrative cases the 
disposition time increased to 529 days in 2022, compared to 440 days in 2020. For criminal 
cases the disposition time is rather long in 2022 was 132 days, almost the same as in 2020 when 
it was 126 days.  

The development in clearance rates in the first instance reflect a similar tendency with the 
clearance rate for civil and commercial cases improving from 87% in 2020 to 101% in 2022. 
The backlog for pending criminal cases was 4 322 in 2020 and 6 536 in 2022 in first instance, 
and  746  in  2020  and  784  in  2022  in  second  instance.  For  civil  and  commercial  cases,  the 
number of pending cases in first instance was 59 515 in 2020 and 63 969 in 2022.  

The  Constitutional  Court  had  284  pending  constitutional  complaints/submissions  as  of  31 
December 2022 and its clearance rate in 2022 was 84%, compared to a clearance rate of 50% 
in  2021  and  106%  in  2020.  Very  few  submissions  (only  two  in  2022)  are  presented  to  the 
Constitutional Court by Georgian courts and the Public Defender’s Office regularly submits 
constitutional complaints.  

Fight against corruption  

Georgia  has  some  level  of  preparation  in  the  fight  against  corruption  and  made  some 
progress.  Georgia’s  legal  framework  on  anti-corruption  is  largely  approximated  to  the  EU 
acquis  and  international  norms  following  substantial  legal  reforms.  In  May  2023,  Georgia 
implemented  one  outstanding  GRECO  recommendation  by  widening  the  scope  of  the  asset 
declaration regime to cover all prosecutors. An Anti-Corruption Bureau was set up in 2022. 
The  legal  framework  was  amended  to  strengthen  the  investigative  authority  of  the  Special 
Investigation Service (SIS) and the Personal Data Protection Service (PDPS). Legislation on 
the  Anti-Corruption  Bureau,  the  SIS  and  the  PDPS  was  sent  to  the  Venice  Commission  in 
September 2023. Further efforts need to be undertaken to tackle high-level corruption and, in 
particular, to address the challenge of large-scale vested interests and their influence in both 
the political, judicial and economic spheres. Georgia has not yet developed a new national anti-
corruption strategy or action plan.  

In the coming year, Georgia should in particular: 

→  align  the  legislation  on  the  Anti-corruption  Bureau  to  the  ODIHR/Venice  Commission 
recommendations  and  ensure  that  the  new  Bureau,  as  well  as  the  relevant  enforcement 
agencies,  operate  independently  and  effectively,  avoiding  any  politically  selective 
approach; in particular, asset declarations should be audited against the legitimate income 
and investigations  should take place in  case of unexplained differences;  Georgia should 
also  develop  and  adopt  an  anti-corruption  strategy  and  action  plan,  ensuring  it  is 
comprehensively 
timelines,  adequate  funding  and 
monitoring mechanisms; 

through  realistic 

implemented 

→  repeal  the  decision  of  February  2023  to  withdraw  from  the  OECD  anti-corruption 
monitoring  network  for  Eastern  Europe  and  Central  Asia  (OECD/CAN)  and  fully 
implement recommendations from the previous rounds; 

→  on  de-oligarchisation,  implement  the  action  plan  following  a  systemic  approaching  line 
with  the  recommendations  by  the  Venice  Commission  (Opinion  of  March  2023  and 
Opinion of June 2023). This includes that a new anti-corruption strategy and action plan 
needs to be adopted and its full implementation ensured by providing adequate funding and 
monitoring mechanisms.  

25 

 
 
Track record  

A  large  number  of  corruption  cases  involving  low  and-medium  level  officials  have  been 
successfully prosecuted, primarily in the public procurement field. As regards the track record 
of investigations, prosecution, adjudication and final convictions of corruption cases, notably 
of high-level corruption cases, in 2022 a total of seven high-level officials were prosecuted 
and  six  officials  were  convicted  for  corruption.  Overall,  prosecutions  and  convictions  on 
corruption cases have increased compared to 2021: 36% increase in prosecutions and 73.5% 
increase in convictions.  

Detailed statistics and analytics on the detection, investigation, prosecution and adjudication 
of corruption cases, especially high-level corruption cases are deficient and needs to be more 
proactively  published.  Public  communication  and  accountability  on  alleged  high-level 
corruption cases also need to be strengthened. 

Allegations  of  high-level  corruption  cases  need  appropriate  follow  up.  The  GRECO 
recommendations on preventing corruption in respect of judges are yet to be fully implemented 
(out of four recommendations in this area, three have been partially implemented and one has 
not). 

The 2022 asset declaration monitoring results by the Civil Service Bureau detected violations 
in 52% of verified declarations (181 out of 346 asset declarations). The Civil Service Bureau 
actively applied administrative penalties for violations related to asset declarations. No case 
was referred for criminal investigation. The asset declaration monitoring has not detected any 
cases of illicit wealth or high-level corruption. 

In 2022, 30 reports of wrongdoing were filed by whistle-blowers on a special online platform 
for whistleblowing reports  created by the  government. No information  is  available on what 
measures have been taken to address them. 

Institutional framework 

Prevention of corruption 

The framework for policy coordination is in place, but it is not properly utilised in practice as 
the main anti-corruption policy coordination platform, the National Anti-Corruption Council, 
has not met since 2019. Pursuant to the establishment of  the Anti-Corruption Bureau, some 
aspects of policy coordination were assigned to the Bureau, such as coordinating the drafting, 
implementation and monitoring process of the national anti-corruption strategy and the action 
plan. The mandate of the National Anti-corruption Council was also adjusted, and the Council 
was tasked with developing recommendations on implementing adopted anti-corruption policy 
documents. The mandates of the Bureau and the Council, especially in the policy development 
and monitoring domains, need to be clearly delineated.  

In  November 2022, the  Parliament passed legislation in  its third and final  reading  (with no 
votes  from  the  opposition),  establishing  an  Anti-Corruption  Bureau  to  oversee  and 
coordinate  Georgia’s  anti-corruption  policy  and  draw  up  proposals/recommendations.  The 
Bureau will also have the mandate to monitor asset declarations (previously done by the Civil 
Service Bureau), monitor party financing (previously done by the State Audit Office) and adopt 
recommendations on protecting whistle-blowers. The Bureau took over these responsibilities 
on 1 September 2023. It does not have investigative functions. On 10 February 2023, the Prime 
Minister appointed the head of the Anti-Corruption Bureau for a term of 6 years. The legislation 
was  not  sent  to  the  Venice  Commission  for  an  opinion.  The  opposition  parties  and  CSOs 
expressed strong reservations as to the Bureau’s independence and effectiveness. Legislation 

26 

 
 
on the Anti-Corruption Bureau was sent to the Venice Commission for opinion in September 
2023.  

Several  Ministries  and  agencies  developed  or  are  developing  an  integrity  risk  assessment 
document. There is no systematic approach nor framework for risk assessment.  

In  November  2022,  the  Parliament  passed  the  draft  law  on  de-oligarchisation  at  its  second 
reading, with 76 votes (with no votes from the opposition). After a Venice Commission opinion 
on March 2023, on 12 April 2023 Parliament sent an updated reform to the Venice Commission 
for a second opinion. In its final opinion the Commission unequivocally recommended not to 
adopt  the proposed law due to  its expected ineffectiveness,  as well as the risks it posed for 
democracy  and  the  rule  of  law.  Instead,  the  Commission  recommended  countering  undue 
influence by oligarchs through systemic reforms. On 19 September, the Parliament voted down 
the draft law. Georgia endorsed an action plan on de-oligarchisation on 14 September and sent 
the action plan to the Venice Commission for an opinion in September 2023. The action plan 
follows a systemic approach and builds on the recommendations by the Venice Commission 
(Opinion of March 2023 and Opinion of June 2023). 

Law enforcement 

There is no dedicated law enforcement, prosecution services or specialised courts for fighting 
corruption.  The  investigative  mandate  is  spread  among  the  Prosecution  Service,  the  State 
Security  Service,  the  Ministry  of  Justice  and  the  Ministry  of  Finance.  The  corruption 
investigation  units  within  these  institutions  lack  autonomous  powers  and  safeguards  for 
independence,  to  prevent  risks  of  undue  political  influence.  Transparent  appointment 
procedures for the heads of these units are also lacking. Similarly, there is no stand-alone body 
in  charge  of  investigating/prosecuting  high-level  corruption.  More  needs  to  be  done  to 
strengthen the specialisation and efficiency of investigations in this area.  

Legal framework 

Georgia  has  introduced  substantial  legal  reforms  to  combat  corruption,  with  a  view  to 
approximating  to  the  EU  acquis  and  international  norms.  Georgia  is  a  party  to  all  key 
international  anti-corruption  conventions,  including  the  UN  Convention  against  Corruption 
(UNCAC) and the Council of Europe Criminal Law Convention against Corruption and the 
Civil Law Convention against Corruption.  

Georgia  is  a  participating  state  of  the  Group  of  States  against  Corruption  (GRECO).  It  has  
implemented  or  dealt  with  eight  of  the  16  recommendations  contained  in  the  4th  Round 
Evaluation  Report.  In  May  2023,  Georgia 
implemented  one  outstanding  GRECO 
recommendation by widening the scope of the asset declaration regime to cover all prosecutors. 
A  recommendation  about  limiting  the  immunity  of  judges  to  activities  relating  to  their 
participation in judicial decision-making (‘functional immunity’) remains to be implemented. 

Georgia is also a member of the Anti-Corruption Network of the Organisation for Economic 
Cooperation and Development (OECD/ACN). On 16 February 2023, the government declined 
to  join  the  new  round  of  monitoring  from  this  network,  which  would  have  assessed  the 
country’s  anti-corruption  framework  using  an  updated  methodology.  There  was  no  further 
follow-up of its recommendations. 

The system of asset declarations for public officials is in place, and the laws regulate conflict 
of interests and protection for whistle-blowers. The scope of the law related to asset declaration 
and  its  implementation  and  monitoring  should  be  improved,  and  whistle-blower  protection 
needs to be strengthened and aligned with the EU acquis. The administrative capacity to obtain 
effective control of party financing and electoral campaign financing needs to be strengthened.  

27 

 
 
Lobbying in Georgia is regulated by the Law on Lobbying.  

Strategic framework 

The latest strategy and action plan for 2019-2020 dates from 2019. Less than half of the action 
plan measures (43.5%) were fully implemented and outstanding measures have not yet been 
addressed. The preparation of a national anti-corruption strategy and action plan are underway. 
The corruption risk assessment methodology is being revised.   

Anti-corruption policies are also included in some thematic strategies as crosscutting issues 
(e.g.  Public  Administration  Reform  strategy,  decentralisation  strategy),  but  these  lack  a 
comprehensive  and  systematic  approach.  Sectors  most  vulnerable  to  corruption  require 
targeted risk assessments and dedicated measures. 

Fundamental rights 

The  legislative  and  institutional  framework  on  fundamental  rights  is  largely  in  place.  The 
priorities from  the Commission  opinion that fall under fundamental  rights are Priority 8 on 
ensuring the human rights for vulnerable groups, Priority 9 on gender equality and fighting 
violence, Priority 11 on legislation related to the European Court of Human Rights (ECtHR), 
and  Priority  12  related  to  an  independent  Public  Defender.  An  action  plan  for  the  National 
Human Rights Strategy is being developed, with consultations launched with civil society. In 
September Georgia has submitted the law on Personal Data Protection and SIS to the Venice 
Commission.  

 In the coming year, Georgia should in particular: 

→  ensure that the follow-up action plan to the 2022-2030 national human rights strategy is 
finalised  in an inclusive manner and takes into account the main issues raised by the Public 
the 
Defender,  civil  society  and  relevant 
implementation  of  the  anti-discrimination  legislation;  take  more  decisive  measures  to 
address and prevent hate speech and hate crimes; 

international  organisations.  Strengthen 

→  adopt national strategies to fight all forms of hatred and discrimination,  and protect ethnic 

and religious minorities; 

→  investigate and prosecute the organisers of the violence on 5 July 2021 and 8 July 2023 at 
Tbilisi  Pride,  adopt  the  Human  Rights  action  plan  ensuring  also  the  rights  of  LGBTIQ 
persons;  ensure  full  respect  and  protection  for  freedom  of  assembly  and  freedom  of 
expression,  in  particular  by  reforming  the  code  on  administrative  offences,  including 
through a broad participation by stakeholders; 

→  address the gaps in the new Personal Data Protection law and strengthen the Personal Data 
Protection Service in line with forthcoming Venice Commission Opinion, to ensure that the 
new data protection regulations are adequately implemented.   

Georgia has ratified all major European and main international human rights instruments.  
It  has  not  ratified  the  Convention  for  the  Protection  of  All  Persons  from  Enforced 
Disappearance and the International Convention on the Protection of the Rights of All Migrant 
Workers  and  Members  of  Their  Families.  Georgia  still  needs  to  ratify  several  key  ILO 
conventions including the Labour Inspection Convention, the Occupational Safety and Health 
Convention, the 2014 protocol to the Forced Labour Convention, the Minimum Wage Fixing 
Convention, the Social Security (Minimum Standards) Convention, the Maternity Protection 
Convention and the Violence and Harassment Convention. 

During  the  reporting  period  Georgia  underwent  a  few  periodic  reviews:  the  International 
Covenant  on  Civil  and  Political  Rights  (ICCPR)  in  July  2022;  the  Committee  on  the 
28 

 
 
Elimination  of  Racial  Discrimination  (CERD)  in  December  2022;  the  Committee  on  the 
Elimination of Discrimination against Women (CEDAW) in February 2023 and the Committee 
on the Rights of Persons with Disabilities (CRPD) in March 2023.  

It has not yet ratified the Occupational Safety and Health Convention (C155), the Promotional 
Framework for Occupational Safety and Health Convention, the 2014 Protocol to the Forced 
Labour Convention (P29), the Labour Inspection Convention (C81) or the Labour Inspection 
(Agriculture) Convention (C129) have not yet been ratified.  To fulfil its reporting obligations 
before  the  UN  treaty  and  charter-based  bodies,  Georgia  has  developed  national  reporting 
processes. All government reports are now subject to parliamentary scrutiny.  

The recommendations are not always fully implemented. The mandate to monitor the level of 
implementation is vested in the Parliament.  

The 2022 Human Rights strategy does not include references to the rights of LGBTIQ persons 
and discrimination on grounds of sexual orientation and gender identity, specific provisions 
related to effective protection of privacy, nor does it address the challenges related to torture, 
not  the  least  that  the  definition  in  Georgian  law  does  not  meet  the  relevant  international 
standards. There is a need to develop a comprehensive monitoring and data collection system 
in  order  to  assess  the  level  of  implementation  of  human  rights  legislation,  policies,  and 
strategies.  On  1 September  2023,  the  Human  Rights  Department  was  established  under  the 
Government Administration. An action plan for the National Human Rights Strategy is being 
developed  and  consultations  with  civil  society  were  launched  early  November.  This 
consultation  process  should continue ensuring broad and inclusive process  engaging  further  
civil society and also international partners.  

Procedural rights are protected by the Constitution and the legal framework is generally in 
line  with  international  standards.  The  UN  has  expressed  concerns  regarding  the  persisting 
protection gap in the Code of Administrative Offences, including insufficient safeguards for 
administrative detainees, the lack of clarity about standards of proof, which often results in the 
burden of proof being borne by detainees, and the absence of the meaningful right to appeal 
detention decisions. This puts them at a higher risk of ill treatment, both at the time of arrest 
and during detention. During the reporting period, the ECtHR found a violation of Article 6 § 
1 of the Convention in several cases.  

The government took positive steps to ensure the protection of victims’ rights. In 2022, the 
Special Investigation Service issued an order granting a probable victim the right to study case 
materials during an investigation even before receiving victim status. Moreover, a council for 
reviewing the complaints of victims in life infringement cases was established at the General 
Prosecutor's  Office  in  December  2022.  The  council  is  empowered  to  review  a  victim’s 
complaints  regarding  the  effectiveness  of  investigations  into  life  infringement  cases  and 
prepare a recommendatory decision for the Prosecutor General. The Public Defender reports 
that the practice of granting victim status is inconsistent in criminal cases. In most cases, victim 
status is granted after receiving expert opinions and (sometimes) launching prosecution against 
a specific individual.  

In 2022, the Public Defender also reported that in some instances the right to fair trial was not 
respected and a conviction was delivered in breach of the principle of legality. There have also 
been cases in which the fairness of the court proceedings was not guaranteed. There are some 
challenges  with  reported  practice  of  bringing  citizens  as  witnesses  to  police  facilities  and 
arresting them.  

In  June  2023,  there  were  172  applications  pending  before  the  European  Court  for  Human 
Rights (ECtHR). The Court delivered judgements on 20 applications and found breaches of the 
29 

 
 
European Convention on Human Rights in 14 out of 15 cases, relating mainly to the right to 
respect for private and family life, the right to a fair trial, the prohibition of torture and freedoms 
of assembly and association. In the reporting period, 179 new applications were allocated to a 
decision body. Currently, there are 34 cases under enhanced supervision by the Committee of 
Ministers. 

On 31 December 2022, Georgia had 68 cases pending execution (compared to 63 in 2021 and 
53  in  2020),  of  which  six  were  leading  cases  classified  under  the  enhanced  procedure 
(compared to 5 in 2021 and 5 in 2020), and 21 were leading cases classified under the standard 
procedure. Of the leading cases under the enhanced procedure, 5 have been pending for 5 years 
or more; similarly, 5 of the leading cases under the standard procedure have been pending for 
5 years or more (compared to 4 in 2021 and 3 in 2020).  

The pending caseload includes cases and groups of cases concerning ill-treatment, hate crimes 
and  domestic  violence.  The  cases  were  also  characterised  by  ineffective  investigations  into 
them,  restrictions  on  the  right  to  liberty  and  security  for  purposes  not  prescribed  by  the 
European Convention, violations of the right to freedom of assembly and the right to freedom 
of religion or belief, and the right to a fair trial. The new violations found by the Court in 2022 
concerned the right to a fair trial and property rights.   

In October 2022, Parliament passed the legal package  aimed at enabling Georgian courts to 
proactively take into account the judgments and decisions of the ECtHR. The initiative focused 
mainly on legislative mechanisms stimulating the reference to ECtHR decisions by Georgia’s 
courts, supporting the professional development  of judges, prosecutors and defence lawyers 
and  raising  the  quality  of  reference  to  ECtHR  decisions  in  their  work,  establishing  new 
organisational units in the courts’ system for analysing ECtHR decisions and increasing access 
to them for judges. 

Regarding the national framework for respect, protection and fulfilment of human rights, the 
Public Defender’s Office (PDO) continues to implement its mandate including as regards the 
national  preventive  mechanism,  anti-discrimination  mechanism  and  the  mechanism  of 
monitoring the rights of persons with disabilities. The Office currently has sufficient financial 
and staffing resources to perform its duties. Currently there are 123 permanent positions in the 
PDO and 19 of those remain vacant. In March 2023, 38 contracted employees were added to 
the  Office.  In  2023,  funding  for  the  Public  Defender’s  Office  increased  by  GEL  406,000 
compared to 2022 and amounts to a total of GEL 9.27 million (EUR 3.3 million).  

During the reporting period, the mandate of the Public Defender expired. Priority 12 of the 
Commission  opinion  highlighted  the  need  to  ensure  that  an  independent  person  is  given 
preference  in  the  process  of  nominating  a  new  Public  Defender  and  that  this  process  is 
conducted in a transparent manner. It also stressed the need to ensure the Office’s effective 
institutional  independence.  In  September  2022,  the  Parliament  launched  an  open  call  for 
candidates. No candidate received support from a sufficient number of MPs. Following this 
failed  attempt,  the  procedure  reverted  to  one  nominee  per  party.  As  a  result,  a  new  Public 
Defender was elected on 7 March by 96 votes (with 10 votes coming from the opposition), with 
no one voting against. The United National Movement abstained from voting. On 3 April, the 
Public Defender appointed two new deputies.  

In  March  2023,  Parliament  adopted  the  national  strategy  for  human  rights.  The  process  of 
finalising the strategy was criticised for its lack of a consultative approach and insufficient time 
to provide feedback. The strategy contains positive elements concerning economic and social 
rights,  though  it  does  not  adequately  address  several  key  issues,  notably  discrimination  on 

30 

 
 
grounds  of  sexual  orientation  and  gender  identity,  independence  of  judges,  protection  of 
journalists, the and the right to privacy and elimination of torture.  

The Constitution explicitly prohibits the use of the death penalty. The Public Defender found 
in 2022 many cases of failure by the government to conduct a proper investigation into cases 
where the right to life was violated. In 2022, the ECtHR found violations of the right to life 
in two cases.  

Prohibition of torture and ill-treatment is enshrined in the Constitution. The Inter Agency 
Council on Combating Torture and other forms of Ill Treatment coordinates and monitors the 
fight against torture. Its latest action plan expired at the end of 2022. The 2023-24 action plan 
is  currently  being  drafted.  A  manual  on  the  use  of  qualifications  for  torture,  humiliating  or 
inhuman  treatment  exceeding  official  authority  and  other  related  crimes  was  created  by 
decision of the Special Investigation Service in July 2023.  

The Georgian Criminal Code has an article on torture and inhuman or degrading treatment as 
well as other articles that provide for lesser penalties, including an article on exceeding official 
powers. Effort should be made to apply the appropriate article when investigating allegations 
of ill treatment or torture by law enforcement officials, to avoid the occurrence of ill treatment 
or torture being underestimated.  

The Prosecution Service has the remit to investigate torture and ill treatment committed before 
1 November 2019 and the Special Investigative Service (SIS), established on 1 March 2022, 
has jurisdiction over such crimes after this date. The mandate of the SIS is very broad and its 
jurisdiction has been extended several times since its establishment. This entails the risk that 
its key mission, i.e. investigation of torture and ill treatment committed by law enforcement 
officers,  does  not  get  sufficient  attention  or  resources.  In  September  2023,  Georgia  has 
submitted the law on SIS to Venice Commission.  The SIS reported that it had received 2 514 
applications/reports since its creation in March 2022 until the end of 2022. A large number of 
the alleged victims are detainees, be it persons under administrative arrest or subject to pre-
trial detention or imprisoned convicts. Criminal investigations were launched in 420 cases, of 
which 56% concerned ill treatment by law enforcement officers.  

In  2022,  the  Prosecution  Service  of  Georgia  (PSG)  launched  investigations  into  3  criminal 
cases  on  allegations  of  ill  treatment  in  penitentiary  institutions  and  8  cases  on  alleged  ill 
treatment  committed  by  police  officers.  The  Service  prosecuted  4  officers  in  penitentiary 
institutions and 7 police officers for ill treatment. Three of the prosecuted persons had been 
investigated by the SIS. It is important to provide statistics that enable the monitoring of the 
entire criminal justice chain, to determine the number of investigated, prosecuted and convicted 
cases of ill treatment and thus evaluate the quality of investigations and the propensity of the 
PSG to prosecute. 

In 2022, the first instance courts did not hear any cases related to law enforcement based on 
Article  144  (1)  of  the  Criminal  Code,  which  criminalises  ‘torture’.  First  instance  courts 
delivered convictions in three cases on the basis of Article 144 (3) of the Criminal Cod, which 
criminalises ‘humiliation or inhuman treatment’ and one case under Article 333 of the Criminal 
Code covering use of force/exceeding official power.  

The  National  Preventive  Mechanism  (NPM)  carried  out  its  mandate  by  performing  148 
monitoring visits to 118 places where individuals were deprived of their liberty in 2022. Of the 
129  NPM  recommendations  from  2021,  only  25%  have  been  implemented.  The  Georgian 
authorities need to implement more of the recommendations by the NPM and other monitoring 
bodies, including the CPT.   

31 

 
 
Efforts to reduce the prison population need to progress, as the country remains among the top 
five  European  countries  regarding  incarceration  rate  (265  per  100  000).  However,  the 
occupancy rate is only around 82%: with a capacity of 11 656, the penitentiary system housed 
9 542 inmates in December 2022.  

The  legislative  framework  on  criminal  penalties  is  largely  in  line  with  relevant  European 
standards, regulating custodial penalties and offering a number of non-custodial penalties as 
well as probation. The system for implementing non-custodial and probation measures is well 
advanced and functions well. In general, the penalties system established by the criminal code 
should allow wider application of non-custodial measures and probation, and an early release 
mechanism. A new penitentiary code was adopted in first reading by the Parliament in June 
2023. 

The  Public  Defender’s  annual  report  for  2022  does  not  report  any  deteriorated 
conditions/capacities  in  police  detention  centres,  except  for  a  reduction  in  the  number  of 
monitoring cameras in most police institutions. The same goes for the overall assessment of 
conditions  in pre-trial  detention/prison facilities managed by the Ministry of Justice/Special 
Penitentiary 
of 
Europe’s Committee for the Prevention of Torture (CPT), based on inspection visits in 2021 to 
three semi-open prisons, disparities in conditions between cells were reported along with lack 
of sufficient administrative control. The shortcomings have been acknowledged by the MoJ 
and action is now planned as part of the new (still draft) penitentiary strategy for 2023-26.  

the  Council 

Service.  As 

report 

2021 

per 

the 

by 

Since his return to Georgia in September 2021, former President Mikheil Saakashvili has been 
imprisoned  under  charges  including  abuse  of  power,  for  which  he  is  serving  a  six-year 
sentence, with several other criminal charges still pending against him.  Since May 2022, he 
has been serving his sentence in the VivaMedi Clinic. Strong concerns continue to be raised 
regarding the deterioration in his health. In 2022, Mr Saakashvili applied to the Georgian courts 
for deferral of his sentences on health grounds; this was denied in March 2023 by the Tbilisi 
Court of Appeals.  

The Georgian authorities have a legal responsibility to protect the health of all detainees, to 
provide adequate medical treatment and respect their fundamental rights, in line with Georgia’s 
international commitments. In April 2023, Mr Saakashvili’s lawyers applied to the ECtHR to 
use an interim measure, arguing that his medical condition cannot be treated in any facilities in 
Georgia. The ECtHR ruling,  issued on 11 May,  did  not  instruct  the Georgian authorities to 
transfer Mr Saakashvili to Poland for medical examination and treatment. 

Parliament adopted the Personal Data Protection Law on 14 June 2023, which was sent to the 
Venice  Commission  for  opinion  in  September  2023.  The  law  aims  to  align  Georgia’s 
legislation with the EU acquis. It has been under discussion for several years. Overall, the new 
legislation provides for improvements in comparison to the 2011 law. Several issues are still 
to  be  addressed,  notably  regarding  rules  on  international  data  transfers  and  certain 
exemptions/limitations to data protection rights. The law will be applicable as of 1 March 2024.  
The country has signed and ratified Council of Europe data protection Convention 108 and its 
Additional  Protocol  181,  but  has  not  yet  signed  Convention  108+  (the  modernised  version, 
from 2018). 

The  new  Personal  Data  Protection  Service  (PDPS)  was  created  in  March  2022  after  the 
dissolution  of  the  State  Inspector’s  Service.  Its  role  is  to  monitor  the  lawfulness  of  data 
processing and oversee covert investigative action and the activities carried out at the central 
database for electronic communication identification data. In the reporting period, the Service 
received 220 applications/notifications related to lawfulness of personal data processing (137 

32 

 
 
applications/notifications  related  to  data  processing  in  private  institutions,  47  in  public 
institutions and 36 in law enforcement bodies).  The Service identified 99 cases of unlawful 
processing of personal data, of which 39 cases were studied in the scope of the examinations 
(inspections) initiated in 2022 and completed in the reporting period. 60 cases were studied in 
the  scope  of  the  examinations  (inspections)  initiated  and  conducted  in  2023.  The  Service 
imposed fines and warnings as administrative penalties in 74 cases.  

In June 2022, the Parliament adopted the draft Law on amendments to the Criminal Procedure 
Code. This significantly extends the list of crimes under which the use of covert investigative 
measures  in  investigations  is  allowed,  as  well  as  the  permissible  duration  of  a  covert 
investigative  measure.  The  amendments  were  vetoed  by  the  President  of  Georgia.  On  her 
request, the Venice Commission, in its opinion of 22 August 2022, concluded that the law was 
adopted in a hasty procedure, highlighted the inadequate oversight mechanism for the secret 
surveillance measures, and urged the authorities to re-examine the legislation. Moreover, the 
Venice Commission underlined that covert surveillance should be seen as an exception and be 
very  carefully  worded  and  narrowly  interpreted  by  the  government.  In  spite  of  these  clear 
recommendations to take a cautious approach, the Parliament overruled the President’s veto on 
6 September and the law was enacted. This development raises serious concerns.  

The investigation that started in September 2021 into the eavesdropping and illicit surveillance 
of politicians, journalists, civil society activists and the diplomatic community, including tapes 
of private life and correspondence, has not been concluded. The repeated calls, including by 
the Public Defender, to improve accountability and effective institutional oversight are yet to 
be addressed. 

Freedom of thought, conscience and religion is constitutionally guaranteed. Georgia’s anti-
discrimination legal framework prohibits discrimination and manifestation of intolerance on 
the  ground  of  religious  beliefs.  The  Criminal  Code  prohibits  any  unlawful  obstruction  to 
holding worship and religious rites, violation of equality or interference with the establishment 
of religious associations.  

However, religious minorities face several challenges in exercising their freedom of religion 
notwithstanding  this  comprehensive  legal  framework.  For  example,  there  is  insufficient 
funding  provided  to  religious  minorities  for  rehabilitating  their  places  of  worship  and  an 
unequal  application  of  tax  exemptions  for  religious  organisations.  Other  issues  include  the 
denial of a request to construct a new mosque in Batumi City and subsequent legal proceedings, 
allegations of stigmatisation, pressure to convert and harassment against members of religious 
minorities, particularly Muslim students, in state schools. The main policy-making government 
body, the State Agency on Religious Issues, does not have the full trust of the public and there 
are concerns about its security-centric approach to minority religious issues. 

Hate  crimes  towards  religious  minorities  are  addressed,  though  some  investigations  into 
alleged attacks, discrimination and physical violence committed on the grounds of religious 
intolerance lack effectiveness.   

Regarding the fight against antisemitism, Georgia reported only few cases of antisemitic hate-
speech in 2022. The government is taking  measures to safeguard Jewish culture and heritage 
in Georgia.  

----------------------------------------------------------------------------------------------------------------
----- 

Freedom of expression 

33 

 
 
Georgia has reached some level of preparation on freedom of expression and made limited 
progress. The Law on broadcasting was amended to further align with the Audiovisual Media 
Service Directive. In Georgia, there is an overall pluralist, diverse but highly polarised media 
landscape. Critical media reporting is available. Freedom of expression is overall respected and 
upheld. Georgian citizens and civil society enjoy their rights of freedom of speech. Most of the 
TV  broadcasters  are  affiliated  to  political  parties,  deepening  the  political  divisions  in  the 
country. This is contrary to the prohibition on political parties owning media outlets. Georgia 
made some progress on the issue of ownership concentration with the revised Law on Public 
Broadcasting. The government and CSOs have taken steps to engage in a structured dialogue 
including  on  freedom  of  expression.  There  was  also  progress  in  the  regulation  of  party 
financing with Parliament adopting in December 2022 electoral amendments including a party 
financing cap.  

Continued public attacks and discrediting rhetoric against journalists and media professionals 
by high-level public officials and politicians, from both government and opposition, as well as 
from violent far-right groups, have created a somewhat hostile environment, posing a threat to 
media freedom and pluralism. Delays by public institutions and officials in responding to (or 
failure to respond to) requests for information, especially from critical and independent media, 
raise concern.    

In the coming year, Georgia should in particular: 

→  ensure the safety of journalists and provide prompt, impartial and due legal follow-up in 
cases of attacks against and intimidation of journalists, including as regards the instigators 
of the 5 July 2021 violence against over 50 journalists; 

→  improve the independence of the national media regulator (Communication Commission) 
in line with the principles of Audiovisual Media Service Directive and European standards; 
→  align further the legislative framework with European and international standards notably 
regarding  hate  crimes  and  hate  speech  including  the  2008  Framework  Decision  on 
combating certain forms of expressions of racism and xenophobia. 

Intimidation of journalists  

The media environment is largely pluralistic, but also highly polarised. Georgia needs to follow 
the  EU’s  policies  on  the  protection  and  safety  of  journalists  and  media  professionals.  The 
Council of Europe (CoE) has conveyed strong concerns related to both  Georgia’s legal  and 
policy framework and its implementation in terms of protection and safety of journalists. In 
2020-2022,  the  CoE’s  Platform  on  Safety  of  Journalists  received  16  alerts  of  violence  and 
threats of violence against journalists in Georgia, compared to no alerts in the 3 previous years. 
Georgia’s  security  indicator  deteriorated  from  100  to  135  in  the  Reporters  without  Borders 
2023 Index, as the country slid from 77th to 89th place. 

The organisers of the violence on 5 July 2021 remain at large. 60 individuals (including 48 
journalists  and  one  cameraman)  and  one  legal  entity  –  ‘Tbilisi  Pride’  –  are  recognised  as 
victims. The Prosecution Service prosecuted 31 individuals for participating in the violence; 
proceedings  against  14  defendants  were  concluded.  As  for  the  organisers  of  the  violence, 
investigations  are  officially  still  ongoing.  No  prosecution  took  place  during  the  reporting 
period. Georgia needs  to urgently follow-up on these cases  and ensure the perpetrators and 
instigators of the violence are brought to justice. 

In November 2022, the Tbilisi Court of Appeals ruled to uphold Mtavari Arkhi TV director 
sentence of 3 years and 6 months in prison, finding him guilty on two counts under Article 220 
of the Criminal Code, abuse of power. The Public Defender found the judgement and reasoning 

34 

 
 
of the court to be unfounded and unsubstantiated in terms of conviction as well as sentencing. 
In  June  2023,  the  Supreme  Court  reaffirmed  the  above-mentioned  judgement  by  upholding  
prison  sentence  and  ruling  that  the  filed  cassation  appeals  were  inadmissible.  On  22  June, 
President Zourabichvili used her discretionary right and signed the decree on pardoning  the 
Mtavari Arkhi TV director, who was released from prison on the same day. 

Several  court  proceedings  and  investigations  against  opposition  media  owners  took  place. 
Recent libel and defamation lawsuits and verdicts have a problematic effect on critical media 
reporting. In addition, there is a number of ongoing cases against journalists, including those 
dismissed from Rustavi 2.  

Legislative environment 

The Constitution and the Law on freedom of speech and expression provide for the right to 
freedom of expression as per international human rights law.  

The Law on broadcasting was amended in October 2023 following intensive discussions with 
the European Commission. Amendments were adopted to ensure the enforcement of the rules 
prohibiting  incitement  to  violence  and  hatred  and  protection  of  minors  and  to  introduce  a 
system of self-regulation with legal backstop, aiming at alignment with the AVMSD. To ensure 
transparent and trustful relations with media the effective independence of the Communication 
Commission needs to be further ensured. Georgia shared proposals in this regard and should 
adopt  transparent  rules  relating  to  the  decision-making  processes  of  the  national  regulator, 
including  the  publicity  of  their  decisions  and  the  handling  of  complaints.  Further,  the 
transparency of the appointment of candidates and grounds for dismissal of its members should 
be adapted building on European standards. Ensuring that all decisions are made public with 
increased dialogue can further assist in this task and assist developing conducive environment 
for cooperation with media sector. Further, the grounds for dismissal of its members should be 
reinforced building on best current practice.   

The  legislative  framework  needs  to  be  fully  aligned  with  the  EU  recommendation  on 
protection, safety and empowerment of journalists. There are serious shortcomings regarding 
investigation and prosecution. The Council of Europe recommends amending Article 154 of 
the Penal Code and the Law on Assemblies and Demonstrations.  

Implementation of legislation/institutions 

The  Georgian  National  Communication  Commission  (ComCom)  regulates  activities  in  the 
field of broadcasting and electronic communication. Its  rulings have a mandatory effect.  Its 
governing  body  is  composed  of  five  elected  Commissioners  and  a  Chair.  The  ComCom 
functional  independence  and  impartiality  needs  to  be  further  demonstrated  with  transparent 
proceedings and trustful relations with media stakeholders. The letter from the Chairmen of the 
Georgian Parliament confirms the commitment to work on the issue of independence which 
should be swiftly addressed. Among other issues, the duration of the Commissioners’ tenure 
and the quorum for decisions raise concerns. The mechanism for selecting its members should 
be revised to ensure transparency.  

Public service broadcaster 

The independence of the Georgian Public Broadcaster (GPB) is guaranteed under the Law on 
broadcasting. It has significant budget funding of at least 0.14% of the previous year’s GDP, 
as well as income from broadcasting fees.  

Economic factors 

35 

 
 
Transparency of media ownership is guaranteed by law. In a context of strong political and 
editorial  divisions,  media  operates  on  market  principles,  which  include  the  use  of  public 
procurement rules to buy airtime (including advertising) - also by government agencies. The 
exception being for key public information.  

The arrest of and court cases against some media owners and directors had a chilling effect on 
the fundraising and sales ability of the smaller, critical pro-opposition TV companies, resulting 
in a fall in their sponsorship revenues and advertising income.  

Internet 

The  Constitution  guarantees  the  right  of  access  to  and  free  use  of  the  internet.    (See  data 
protection section).  

Freedom of artistic expression 

Neither the Constitution, the Law on culture or the Law on freedom of speech and expression 
restrict freedom of artistic expression. The 2020-2025 culture strategy is in place. Information 
on its implementation is scarce and dialogue between the government and civil society remains 
limited.  

Georgia is a signatory of the 2005 UNESCO Convention on the Protection and Promotion of 
the Diversity of Cultural Expressions. More incentivising, lobbying and funding of a diverse 
range of artistic expression is needed. There have been several high-profile incidents of alleged 
restriction and hindrance of artistic expression, including restricting access to public funding 
and cancelling movie screenings. 

Professional organisations and working conditions 

Georgian  journalists  and  media  outlets  are  represented  by  several  membership-based, 
associations/organisations which lobby on their behalf. These include the Georgian Charter of 
Journalism Ethics, the Media Advocacy Coalition, the Georgian Alliance of Broadcasters and 
the  Georgian  Regional  Media  Association  (GRMA).  There  is  a  dialogue  between  the 
government  and  professional  bodies,  but  its  impact  is  limited.  Considerable  delays  and  a 
recurring refusal to access public information pose a serious challenge for media and CSOs, 
affecting the timeliness, accuracy and quality of their work and reporting.  
Associations  set  professional  standards  for  ethical  reporting,  ethical  coverage  of  sensitive 
issues  (such  as  suicide,  children’s  issues  and  victims  of  sexual  violence).  Enforcement  of 
professional standards set by professional bodies is not mandatory. National and regional TV 
broadcasters have internal self-regulation mechanisms to review and respond to complaints. 
----------------------------------------------------------------------------------------------------------------
----- 
The rights to freedom of assembly and association are guaranteed by the Constitution and 
regulated by the Law on assemblies and demonstrations. There are some legal restrictions in 
place prescribed by the Constitution and the law itself. For example the constitutional right 
does not cover those serving in the army or law enforcement. On 5 October 2023, Parliament 
adopted amendments to the Law on Assemblies  and Manifestations in expedite manner and 
without prior consultations. The Public Defender and CSOs expressed concerns with this Law 
and  the  President  vetoed  it  on  17  October.  The  amendments  allow  for  arbitrary  and  undue 
restrictions on the right to freedom of assembly. 
Georgia needs to ensure judicial follow-up regarding the alleged excessive use of force and 
disproportional measures used by law enforcement officers during the 7-9 March 2023 protests, 
where  thousands  of  demonstrators  gathered  in  front  of  the  Parliament  building,  protesting 
36 

 
 
against  the  draft  ‘foreign  agents’  law.  The  Special  Investigation  Service  launched  an 
investigation into alleged excessive use of force and ill treatment by law enforcement officers 
during the protests, based on 22 received complaints.  
Georgia has not yet reformed its administrative offences’ system, which continues to use the 
Law  on  administrative  offences  to  address  alleged  administrative  misconduct  during  public 
gatherings. The Code is the only remaining legislative act in force that was adopted during the 
Soviet period and lacks substantial procedural guarantees (e.g. burden of proof, presumption 
of innocence, comprehensive examination of a case) to ensure the right to a fair trial in the light 
of freedom of assembly. The legislative ambiguities in the Code allow arbitrary decisions to 
restrict freedom of assembly.  
During the reporting period, the ECtHR found violations of Article 11 (freedom of assembly 
and association) in three cases. On 2 June 2023, police detained seven human rights defenders 
and activists  protesting in front of the Parliament, sparking  strong reactions about potential 
violation of freedom of assembly and the freedom of expression. 
Georgia has a comprehensive legislative framework on non-discrimination, which is largely 
in  line  with  the  EU  acquis  and  international  standards.  Its  enforcement  requires  substantial 
improvements.  Strategic  policy  aimed  at  strengthening  equality  is  in  place.  It  does  not 
specifically  recognise  challenges  faced  by  certain  persons  in  vulnerable  situations,  such  as 
LGBTIQ  persons,  failing  to  plan  specific  measures  to  eliminate  prevailing  discriminatory 
practices. 
The Public Defender’s Office examined 153 cases of alleged discrimination in 2022, 20% of 
which concerned alleged discrimination on the grounds of dissenting opinion. 13% of the cases 
concerned  discrimination  based  on  sex/gender  and  disability  and  11%  were  about 
discrimination on the grounds of sexual orientation and gender identity.  
The Criminal Code defines aggravating circumstances for hate crimes. Strategic frameworks 
for  law  enforcement  agencies  also  include  measures  to  address  hate  crimes.  There  are 
shortcomings  in  terms  of  prompt  and  effective  investigation,  as  well  as  identifying  a  hate 
motive  and  conviction  for  hate-crimes  against  persons  belonging  to  minority  groups  or  in 
vulnerable situation, often perpetrated by extreme right-wing groups, remains to be ensured. In 
2022, the number of prosecuted hate crime cases significantly increased, as the Prosecutor’s 
Office launched prosecutions against 1 172 individuals (compared to 834 in 2021 and 95 in 
2020) on alleged crimes on grounds of intolerance, of which a majority of cases concerned 
intolerance based on gender (1 065), followed by sexual orientation (37), gender identity (18) 
and race or ethnic background (12 cases). Similarly, convictions for hate crimes have increased, 
as 585 individuals were convicted in 2022 for hate crimes, compared to 321 in 2021 and 50 
persons in 2020. 
Regarding consolidation of efforts to achieve gender equality (one of the 12 EU priorities for 
Georgia), the government and the Parliament adopted three strategic documents in 2022: the 
national  action  plan  on  combating  violence  against  women  and  domestic  violence  and 
measures to be implemented for the protection of victims/ survivors (2022-2024); the national 
action  plan  for  implementing  the  UN  Security  Council  resolution  on  Women,  Peace  and 
Security (2022-2024) and the gender equality concept.  

All these documents were drafted with the support of international and local CSOs.  

In  2022,  Parliament  initiated  and  adopted  several  legislative  initiatives  to  address  gender 
equality.  In  a  very  inclusive  process,  Parliament  adopted  a  package  of  draft  laws  on  15 
December, related to compliance with the Council of Europe Convention on Preventing and 
Combating  Violence Against Women and  Domestic Violence, better known as  the  Istanbul 

37 

 
 
Convention,  mandatory  gender  impact  assessment  for  all  legislative  acts  and  several 
amendments to combat violence against women and girls.  The legal definition of rape is not 
in line with the Convention as it is not based on the absence of consent. 

In February, Parliament approved amendments to the Electoral Code, which extended gender 
quotas  for  parliamentary  and  municipal  elections  by  4  years  (until  the  2032  elections)  and 
introduced  gender  quotas  under  the  earlier  Constitutional  Court  Decisions.    In  March, 
Parliament adopted a Plan for the economic empowerment of women.  

Another positive step, in December 2022, was the adoption of amendments by Parliament to 
the law on Normative Acts, to introduce mandatory gender impact assessments for all draft 
legal  initiatives.  In  2022,  the  Ministry  of  Finance  introduced  Gender-Responsive  Public 
Financial  Management  (GRPFM)  Assessment,  which  creates  a  roadmap  mainstreaming 
gender-responsive budgeting and gender-sensitive reporting. The Ministry of Internal Affairs 
updated the domestic violence risk-assessment tool, to improve its effectiveness. The updated 
tool entered into force in May 2023.  

According to Georgian criminal legislation, so-called honour crimes are an indicator of gender-
based discrimination. On an institutional level, the response to gender-based violence is well 
defined and operational; it needs to be improved in practice, including in terms of protective 
measures, survivors support services, and post-shelter services/support. The 2022 decision to 
provide financial compensation to victims of domestic violence is a step forward in creating a 
better supporting environment for victims. The necessary minimum standards for temporary 
housing for victims of violence against women and/or domestic violence were approved on 11 
July 2023. As a result, the existence of victim status as a barrier of receiving services has been 
abolished  from  July  2023.  The  UN  has  expressed  concerns  about  the  prevalence  of  sex-
selective abortions in Georgia, particularly among minorities.  

Economic  participation  of  women  remains  low  compared  to  men.  The  gender  pay  gap  is 
significant, with women earning monthly on average about 30% less than an average nominal 
salary of men.  

Women's political participation in the decision-making process remains a low, especially at the 
local level. Gender quotas in the 2020 parliamentary elections did not change the fact that the 
number  of  women  in  elected  positions  remains  low.  Women  constitute  only  17%  of  all 
Members of Parliament. The share of local women council members doubled from 11% to 24% 
at the local government level, as a result of the 2021 elections. There are only three women 
mayors.  

Georgia needs to promote gender balance in decision-making and politics with and address the 
non-enabling  environment  both  within  party  structures  and  in  society,  but  also  women’s 
capacities 
to  finance  election  campaigns,  gender-based  disinformation  and  cyber-
discrimination against women politicians, as well as stereotypes and perceptions of women’s 
roles and girls’ role in the society.  

Significant improvements in sex-disaggregated/sensitive data collection were introduced. This 
needs  to  be  further  improved,  especially  at  regional/local  levels,  to  enable  evidence-based 
policymaking.  

Georgia has a comprehensive legal framework on the rights of the child. Progress in this area 
has been achieved. The systematic collection of reliable and comparable data disaggregated by 
age and sex is essential for setting evidence-based policy priorities and ensuring the effective 
protection  of  children.  Georgia  should  further  develop  a  child-sensitive  social  protection 
system  to  reduce/prevent  child-poverty  and  providing  services  that  promote  inclusion  of 

38 

 
 
children with disabilities, especially at municipal levels. According to a 2023 UNICEF study, 
37.8%  of  children  in  Georgia  are  materially  deprived.  In  recent  years,  the  government  has 
substantially increased child benefit programmes. The benefits only cover children under the 
age  of  16  and  almost  half  of  poor  families  (47%)  do  not  benefit  from  the  programme, 
supposedly due to fact that they are above poverty line. 

Georgia  is  a  member  of  the  Lanzarote  Committee.  However,  violence  against  children, 
including corporal punishment, remains a persistent problem. The official data of the Agency 
for State Care reveals an increasing number of verified cases of violence against children:  1 
781  cases  in  2022,  compared  to  714  cases  in  2021  and  618  cases  in  2020.  This  echoes  a 
similarly increasing trend in the number of cases reported to the Agency.  

Prompt  and  effective  investigation  of  cases  involving  violence  against  children  is  lacking. 
Georgia has not adopted a national strategy on addressing violence against children, which is 
addressed under the 2022-2030 national human rights strategy. However, the launch of centres 
for  psycho-social  services  (Barnahus),  which  provide  child-friendly,  interdisciplinary  and 
multi-agency services for child victims of sex-crimes, is seen as a positive step.  

Georgia  has  made  progress  in  the  de-institutionalisation  process  of  large-scale  institutions.  
Effective investigation of the alleged mistreatment incidents that occurred over several years 
at the Ninotsminda orphanage is still pending and should be swiftly followed-up. Georgia needs 
to  prioritise  the  development  and  adoption  of  a  credible  deinstitutionalisation  strategy  and 
ensure the transition to community-based care. 

The  existence  of  child,  early  and  forced  marriage  and  adolescent  pregnancies  also  requires 
more coordinated and effective prevention. The Ministry of Internally Displaced Persons from 
the Occupied Territories, Labour, Health and Social Affairs registered 815 cases of adolescent 
pregnancies in 2022, marking an increase over previous years (518 cases in 2021 and 578 in 
2020). The Ministry of Internal Affairs launched investigations into 171 cases of alleged child 
marriage. A coherent child-friendly justice system reform is also needed. 

Concerning the rights of persons with disabilities, Georgia has a comprehensive legal system 
in place, being a party to the UN Convention on the Rights of Persons with Disabilities (CRPD) 
and its Optional Protocol. According to data from September 2022, there are 125 467 registered 
persons with disabilities in Georgia, representing 3.4% of the population. The real number is 
estimated to be larger, possibly 558 000.  

In February 2023, the government adopted a strategy on deinstitutionalisation and independent 
living for persons with disabilities, together with a 2023-2030 action plan. In 2022, positive 
steps were taken to ensure the rights of persons with disabilities, including roughly 20% more 
funding for social packages, to counter inflation. Persons with disabilities working in the public 
sector  can  now  maintain  their  social  payment.    There  were  78  persons  with  disabilities 
employed in the civil service in 2022, compared to 80 in 2021 and 51 in 2020. Persons with 
disabilities  continue  to  face  discrimination  in  many  aspects  of  life,  from  education  to  poor 
social awareness in general, and remain one of the most marginalised groups in the country.  

The disability assessment system has not yet moved away from the medical model and still 
largely disregards individual functioning and environmental factors that undermine the well-
being  of  persons  with  disabilities.  The  legislation  requires  the  government  to  shift  from  a 
medical  to  a  biopsychosocial  assessment  model  in  2023.  In  March  2023  the  action  plan  on 
introducing a biopsychosocial model of assessment for disability was approved by the Ministry 
of Labour, Health and Social Affairs (MLHSA).  

39 

 
 
National accessibility standards are not effectively enforced and a lack of access to buildings, 
transport  and  services  persists,  with  persons  with  disabilities  facing  physical  and  sensory 
obstacles.  

The  upholding  of  the  rights  of  lesbian,  gay,  bisexual,  transgender,  intersex  and  queer 
(LGBTIQ) persons remains a challenge.  In Georgia  LGBTIQ persons are one of the most 
marginalised groups, subjected to systemic homophobia, negative social attitudes and political 
exploitation of homophobic sentiments.  

The  national  strategy  for  the  protection  of  human  rights  for  2022-2030  does  not  address 
LGBTIQ  rights.  The  authorities  fail  to  recognise  and  acknowledge  the  systemic  nature  of 
discriminatory patterns  and inequalities affecting  LGBTIQ persons,  and this  has resulted in 
significant  gaps  in  the  measures  taken  to  address  these  concerns.  There  is  an  absence  of 
concrete  measures  to  support  LGBTIQ  persons,  combating  discrimination  based  on  sexual 
orientation and gender identity.  

The use of hate speech by politicians and public figures fuels hatred towards LGBTIQ persons, 
makes  them  socially  unacceptable  and  extends  the  scope  of  violence  against  them. 
Investigations into alleged hate crimes in 2022 failed to meet standards of effectiveness and 
timeliness.  A  similar  conclusion  was  made  by  the  Council  of  Europe’s  Commissioner  for 
Human Rights, who identified the failure to identify and correctly qualify hate motives as one 
of the biggest challenges.  

No investigation or prosecution has taken place of the instigators and organisers of the violence 
during the events of the Tbilisi Pride march in 2021. On 16 January 2023, a Court of Appeal 
reduced the charges against the perpetrators (and excluded the qualification of ‘organiser’). 

The issue of legal gender recognition is not regulated, and the general procedures are vague. 
On 1 December 2022, the ECtHR found a violation of Article 8 of the European Convention 
on  Human  Rights  (the  right  to  protection  of  private  and  family  life)  in  the  case  of  three 
transgender men v. the Georgian state.  

Regarding  the  protection  of  persons  belonging  to  minorities,  13.1%  of  the  population  of 
Georgia  (488  136  people)  belong  to  a  national  minority.  Of  those,  6.27%  are  ethnic 
Azerbaijanis and 4.53% ethnic Armenians. There are other ethnic groups, such as Kists, Udis, 
Avars, Assyrians, Ossetians, Yezidis, Kurds, Ukrainians, Russians, Greeks, Jews and Roma7, 
in total making up about 2.4% of the population. 

The political representation for minorities is limited, including at local level. In the Parliament, 
6  MPs  belong  to  the  national  minorities  (3  Azerbaijanis,  2  Armenians  and  1  Yazidi).  At 
municipal  level,  several  local  councils  have  a  majority  of  minority  representatives  (in 
Akhalkalaki 35 out of 42 members are from national minorities, in Ninotsminda 29 out of 30). 

The  2021-2030  state  strategy  for  civic  equality  and  integration  is  being  implemented.  The 
government has prepared a 2023-24 action plan with a special focus on empowering women 
and  young  people  from  minority  backgrounds,  through  targeted  programmes  and  improved 
knowledge of the national language as a key priority.  One of the priorities in the strategy is 
‘national language to support integration’.  

The systemic problems in the minority educational system have resulted in various education-
related issues, including poor knowledge of the national language. Minority pupils have lower 
PISA  scores  than  other  Georgian  pupils,  which  reflects  educational  inequality  in  terms  of 

7 In line with the terminology of European institutions the umbrella term ‘Roma’ is used here to refer to a 
number of different groups, without denying the specificities of these groups. 

40 

 
 
 
access to pre-school education and a lack of resources for schools in areas densely populated 
by  minorities.  Teacher  training  and  materials  for  teachers  of  the  Georgian  language  and 
minority languages is not sufficient.   

There are around 22 TV stations broadcasting in minority languages, over ten online media 
outlets and several radios run by minorities. Minority media face similar problems to those of 
‘critical’ national media outlets, e.g. lack of financing, attacks against journalists, slandering.  

Lack  of  equality  was  also  observed  regarding  the  rights  of  religious  communities  (10.7% 
Muslim  and  2.9%  of  Armenian  Apostolic  Christianity).  The  Orthodox  church  (representing 
83.4%)  enjoys  unequal  privileges  in  terms  of  owning  or  purchasing  state  property  and  as 
regards taxes. Allocation of municipality funding is also discriminatory towards some religious 
groups. The Defence Code of 11 July 2023 provides for an exemption to military service for 
clergy in the Orthodox church, but not in other confessions. 

According to the 2014 population census, there are about 640 Roma living in Georgia. Most 
of  them  are  registered  and  have  identity  documents.  In  general,  they  have  access  to  social 
services  and  education.  There  is  no  specific  legislative  framework  to  address  Roma  issues, 
given the small number of them residing in Georgia. The State strategy for civic equality and 
integration for 2021-2030 and its accompanying action plan address all minorities, including 
Roma, to protect and support their cultural identity and increase their participation in different 
spheres of social life. The Roma are one of the most discriminated ethnic groups and suffer 
from  more  limited  access  to  housing  and  government  services  and  experience  literacy 
problems, which impact children’s’ education. It is also a cause of concern that children living 
and/or working on the streets are predominantly Roma.  

The Constitution states that citizens must be afforded the same rights regardless of ethnicity, 
and  in  accordance  with  international  law,  must  ‘have  the  right  to  develop  freely,  without 
discrimination and interference, their culture.’ According to the 2022 OHCHR report, Georgia 
supports  activities  aimed  at  promoting  the  culture  of  national  minority  representatives  and 
inter-cultural  dialogue.  National  minority  theatres,  museums  and  cultural  centres  receive 
government funding. The registration of monuments of cultural heritage is ongoing and various 
buildings have received monument status. The monuments of various national minorities are 
being monitored and rehabilitated.  

There are approximately 92 000 internally displaced families from the breakaway regions of 
Abkhazia and South Ossetia (more than 290 000 internally displaced people, or IDPs). There 
is a need to ensure that resources are distributed based on needs rather than IDP status. To date, 
a long-planned IDP social allowance reform, aiming to change assistance from status-based to 
needs-based,  had  not  been  implemented.  Providing  IDP  families  with  durable,  permanent 
accommodation  remains  a  challenge.  In  2022,  the  government  provided  3  530  internally 
displaced families with new housing. The 2023-2024 action plan for implementing the state 
IDP  strategy  envisages  a  reduction  in  provision  of  durable  housing  solutions.  Parliament 
introduced  additional  amendments  in  December  2022,  following  which  any  IDP  born  after 
2022 will no longer have a right to request housing individually, unless they are a member of 
a nuclear family. Both these amendments constitute positive steps towards a needs-based rather 
than status-based assistance policy. 

As regards property rights, Georgia has legislative guarantees in place. The process of initial 
registration of land through the cadastral system has not been finalised. Approximately 708,000 
ha of territories in the country remain to be registered in the property registry. 

41 

 
 
2.2.2.  Chapter 24 - Justice, freedom and security   

The  EU  has  common  rules  governing  border  control,  visas,  residence  and  work  permits, 
external migration and asylum. Schengen cooperation entails removing border controls inside 
the EU. EU Member States also cooperate with Georgia in the fight against organised crime 
and terrorism, and on judicial, police and customs matters, with the support of EU Justice and 
Home Affairs agencies. 

Georgia has some level of preparation for implementing the EU acquis in this area. Some 
progress  was  made,  through  the  continued  implementation  of  the  action  plan  for  justice, 
freedom  and  security.  Criminal  justice  reform  and  police  reorganisation  have  gained 
momentum but so far results are limited. Reception centres for migration and asylum are now 
operational and so far coping with the inflow of migrants. The centres represent a major step 
forward in creating a sound migration and asylum management system in the country.  

In the coming year, Georgia should in particular:  

→  continue  to  fulfil  the  visa  liberalisation  benchmarks  as  regards  unfounded  asylum 

applications in EU Member States;  

→  continue  to  fulfil  the  visa  liberalisation  benchmarks  regarding  anti-money  laundering 
measures to combat money laundering and preventing/tackling corruption and organised 
crime; 
→  properly 

the  EU’s  Integrated  Border  Management  strategy  and 

implement 

its 

accompanying action plans. 

Fight against organised crime 

Georgia has some level of preparation in fighting organised crime. Some progress was made 
by adopting and implementing a dedicated action plan and, to a lesser extent, strengthening the 
accountability and oversight of law enforcement agencies. The Government adopted the Report 
on Money Laundering and Terrorism Financing Assessment Risks in Georgia on 3 October 
2023. 

Georgia participated in an increasing number of joint operations with EU Member States and 
neighbouring  countries.  A  national  strategy  for  combating  organised  crime  was  adopted  in 
2021 and a subsequent action plan is in place and being implemented.  

The anti-money laundering legislation partially reflects the recommendations by the Financial 
Action Task Force (FATF) and relevant  international  legislation. The country also  needs to 
align  its  legislation  with  Directive  (EU)  2018/1673  on  combating  money  laundering  by 
criminal  law.    There  are  still  outstanding  recommendations  from  the  Council  of  Europe’s 
Committee of Experts on the Evaluation of Anti-Money Laundering Measures (Moneyval) to 
be  addressed.  Georgia  needs  to  improve  its  track  record  of  proactive  investigations, 
prosecutions and final convictions in organised crime and money laundering. 

More needs to be done to improve the coordination and effectiveness of law enforcement in 
fighting certain forms of crime, such as money laundering and financial crimes.  

In the coming year, Georgia should in particular: 

→  increase the effectiveness of the investigation into criminal networks with further reform 

on intelligence-led policing and increasing investigators’ analytical capabilities; 

→  strengthen  the  Interagency  Coordinating  Council  for  Combating  Organised  Crime  to 
improve  cooperation  and  increase  the  efficiency  and  effectiveness  of  the  fight  against 
organised crime;  

42 

 
 
→  strengthen the accountability and oversight of law enforcement agencies.  

Institutional set-up and legal alignment 

Georgia has 11 415 police officers (11 337 in 2021) which is 309.5 police officers per 100 000 
inhabitants  in  2022,  compared  with  an  EU  average  of  335  police  officers  per  100  000 
inhabitants over 2019-2021. 

The fight against organised crime falls under the remit of several law enforcement and security 
administrations in Georgia. Coordination of policy development and implementation lies with 
Georgia’s Inter-agency Coordination Council for Combating Organised Crime. It is composed 
of  the  Ministry  of  Internal  Affairs  (MIA),  the  Ministry  of  Justice  (MoJ),  the  Ministry  of 
Finance, the Ministry of Education and Science as well as the General Prosecutor's Office and 
the State Security Service. MIA acts as the Secretariat of the Interagency Council. The Asset 
Recovery Office is set up within the Public Prosecution Office. There has been a significant 
increase  in  seized/confiscated  assets,  especially  in  money  laundering  and  corruption-related 
cases. In 2022, the Prosecutor General’s Office confiscated EUR 19 856 600 worth of assets 
(compared to EUR 5 668 484 in 2021) in money laundering cases and EUR 1 578 600 worth 
of assets (compared to only EUR  180 330 in 2021) in corruption cases.  Georgia’s financial 
monitoring  service  is  the  Financial  Intelligence  Unit  (FIU).  It  continued  to  strengthen  its 
analytical capacity for data processing and financial analysis. No beneficial ownership register 
has been created yet.  

Georgia has ratified the UN Convention against Transnational Organised Crime, as well as its 
protocols on Trafficking in Persons and Smuggling of Migrants.  In these areas the criminal 
code  is  partially  in  line  with  the  EU  acquis.  The  Law  on  confiscation  of  criminal  assets  is 
partially aligned with the EU acquis.  

The  main  strategic  priorities  for  combating  organised  crime  are  reflected  in  the  2021-2024 
national strategy for combating organised crime. In April 2023, the government approved the 
2023-2024 action plan under this strategy. On 3 October 2023, the Government adopted the 
Report on Money Laundering and Terrorism Financing Assessment Risks in Georgia.  

As  a  way  to  implement  Priority  6  in  the  European  Commission’s  opinion,  a  parliamentary 
working  group  on  strengthening  the  fight  against  organised  crime  was  created,  under  the 
leadership  of  the  Parliament’s  Defence  and  Security  Committee.  In  October  2022,  the 
Committee  adopted  an  action  plan  with  76  activities  tackling  organised  crime,  cybercrime, 
trafficking in human beings, money laundering, terrorism financing and drug-related crimes.  

Amendments to the Criminal Procedure Code on the separation of powers between criminal 
prosecution and investigation bodies are in process. The reform is part of the commitments 
taken by the government in the context of the 2021-2027 EU-Georgia Association Agenda. 

The  legislation  on  trafficking  in  human  beings  is  well  developed.  The  criminal  code 
criminalises trafficking in human beings for the purpose of sexual and labour exploitation and 
lays down penalties ranging from seven to 12 years imprisonment for offences involving an 
adult victim, and from eight to 12 years for those involving a child victim.  

The  Labour  Inspection  Service  is  responsible  for  detecting  forced  labour  and/or  labour 
exploitation cases in public and private companies. 

To  reinforce  the  proactive  identification  of  possible  cases  among  children  working  and/or 
living on the street, special guidelines for eight mobile groups of the Agency for State Care 
were developed in collaboration with the MoJ, the Agency for State Care and the International 
Organisation for Migration. 

43 

 
 
The  Ministry  of  Justice  (MoJ)  coordinates  the  fight  against  trafficking  in  human  beings 
leading  the  Anti-trafficking  Interagency  Coordination  Council  (THB  Council).  Further 
capacity building  for the relevant  law enforcement  agencies is  needed. The new 2023-2024 
national action plan was adopted in December 2022. It is based on the ‘4Ps’ principles (i.e. 
Protection, Prevention, Prosecution and Partnerships) and is in line with most of the EU, UN 
and  Council  of  Europe  (GRETA)  special  rapporteurs  and  the  US  State  Department 
recommendations  and  strategic  priorities.  The  THB  Council  approved  the  governmental 
strategy on protecting homeless children from violence, including trafficking in human beings 
in December 2022. 

Fight against cybercrime is one of the core priorities of the 2021-2024 strategy for combating 
organised crime. Georgia is party to the Budapest Convention on Cybercrime, except for the 
Second Additional Protocol to the Convention. Georgia's criminal law is largely in line with 
the Lanzarote and Budapest convention requirements in terms of addressing online child sexual 
abuse and exploitation. A National Action Plan for Combatting Violence against Children in 
the Digital Environment aligned with the Lanzarote Convention is needed. 

The  possession  of  weapons  by  civilians  is  regulated  by  article  236  of  the  Criminal  Code, 
which envisages criminal liability for the illegal purchase, storage, carrying, manufacturing, 
transportation, forwarding or sale of firearms (other than smooth-bore firearms (shotguns) for 
hunting), ammunition, explosive substance or explosive devices. The Law on Weapons and 
regulations were amended to prevent and reduce cases of non-designated use of weapons and 
to restrain illegal circulation of weapons. 

In September 2022, the Parliament adopted amendments on combating money laundering and 
the financing of terrorism, to align with the 5th EU anti-money laundering Directive, including 
regulations and a supervisory mechanism on virtual assets. Still, Georgia has yet to fully align 
with this Directive. The 2023-2026 national anti-money laundering strategy was approved on 
4  April  2023,  together  with  and  its  implementing  action  plan  on  prevention,  detection  and 
combating  money  laundering  and  terrorist  financing  as  well  as  financing  weapons  of  mass 
destruction. 

Witness protection in criminal proceedings is regulated by Chapter 9 (Articles 67-71) of the 
Criminal Procedure Code.   

Implementation and enforcement capacity 

Georgian organised crime groups operate beyond Georgia’s borders and are active in migrant 
smuggling,  organised  property  crime,  trafficking  in  human  beings,  firearms  and  drug 
trafficking, money laundering and other related crimes, such as document fraud. 

The number of investigations into organised crime in 2022 was 196 (compared to 100 in 2021). 
The  number  of  prosecuted  and  convicted  individuals  for  organised  crime  (‘thief  in  law’ 
offences) has increased. In 2022, 257 people were prosecuted/indicted for different organised 
crimes (211 in 2021), of which 83 fell under ‘thief in law’ offences. 161 people were convicted 
of organised crime in 2022 (94 in 2021) and 87 for ‘thief in law’ offences, compared to 39 in 
2021 (an increase of 123%).  

Georgia needs to strengthen the professional development of training for the employees of the 
agencies involved in fighting cybercrime.  

On international police cooperation, Georgia concluded a Working Arrangement with the 
European Union Agency for Law Enforcement Training (CEPOL). It is recommended that the 
Georgian  Georgian  authorities,  with  the  assistance  of  CEPOL  design,  prepare  and  organise 
targeted training to address the priority training topics at a national level.  

44 

 
 
An operational cooperation Agreement with the European Union's law enforcement Agency 
(Europol) is in force. Georgia has increased its participation in Europol Analytical projects. 
Between May 2022 and February 2023, 1 002 pieces of operative information related to more 
than 4 500 people were shared by MIA with Europol members and partner countries through 
the SIENA channel. In 2022, 2 970 information were exchanged compared to 2 505 in 2021 
(+20%). Moreover, in 2022 62 cases were initiated via SIENA compared to 33 in 2021 (+93%). 

Since March 2023, Georgia has been participating in a Joint Investigation Team (JIT) to fight 
irregular migration, initiated by Italy, Greece, Ukraine and Georgia. 

increased 

Georgia  substantially 
the  European 
Multidisciplinary Platform Against Criminal Threats (EMPACT), from 40 operational actions 
in 2022 to 79 actions in 2023. Georgia is co-leading one operational action in 2023, as it did in 
2022. Georgia’s EMPACT coordinator actively participates in the meetings of the EMPACT 
national coordinators.   

its  participation 

the  context  of 

in 

Georgia has been actively involved in working groups as a member of Interpol. In the reporting 
period,  a  large  amount  of  operational  information  was  exchanged  with  various  countries 
through Interpol channels. Currently, the MIA deploys police attachés in several partner states, 
covering  numerous  countries  (including  EU  Member  States  and  EU/Schengen  Associated 
States).  

Concerning domestic operational capacity, the modernisation of the police forces continued 
with  further  development  of  intelligence-led  policing  (ILP),  aiming  to  establish  a  unified 
system  for  crime  information  and  analysis.  With  the  aim  of  supporting  the  smooth 
implementation of the ILP reform process, an action plan for 2023-2025 was adopted in April 
2023.  Moreover,  by  the  end  of  2022,  community-led  policing  was  introduced  in  all  police 
divisions in Tbilisi and the concept has been launched in Rustavi. 

In 2022, 96 cases of investigations of crimes under Art. 194 of the Criminal Code ‘Legalisation 
of illegal income (money laundering)’ were registered and 19 cases solved – compared to 64 
cases registered and 17 solved in 2021. 

Georgia is primarily a country of origin and, to a lesser extent, of destination and transit, for 
victims  of  trafficking  in  human  beings.  The  number  of  investigations,  prosecutions  and 
detected  victims  of  trafficking  was  gradually  increasing  until  2021,  when  there  were  16 
investigations, five prosecutions and two convictions (compared with 19 investigations, seven 
prosecutions and four convictions in 2021).  

On arms control in 2022, the first instance courts heard 14 cases (against 16 people); in 13 
cases (against 13 people) courts delivered convictions and in one case (against three people) 
the court delivered an acquittal. In 2021, the first instance courts heard eight cases (against nine 
people).  

Cooperation in the field of drugs 

Institutional set-up and legal alignment 

The  2023-2030  national  drug  strategy  was  adopted  on  24  February  2023  along  with  its 
accompanying action plan for 2023-2024 and the 2022-2026 national action plan for the drug 
information  system.  The  Ministry  of  Justice  serves  as  a  national  focal  point  for  the  Reitox 
network run by the European Monitoring Centre for Drugs and Drugs Addiction. 

The legal framework for the fight against drugs consists of specific legislation and provisions 
in  the  criminal  code,  which  include  both  criminal  and  administrative  penalties.  The  legal 
framework for this  is  largely  in  line with  the EU  acquis. Rules on minimum  sentences and 

45 

 
 
penalties for drug-related criminal offences need to be further aligned. Georgia is party to the 
relevant international narcotic drug control conventions. 

Georgia  has  had  a  National  Drugs  Observatory  (NDO)  since  2020,  which  is  in  charge  of 
collecting and analysing data for evidence-based drug policy. The Observatory is hosted by the 
Interagency Coordinating Council for Combating Drug Abuse and is part of the Ministry of 
Justice. The Early Warning System (EWS) on new psycho-active substances (NPS) has not yet 
become operational.   

Implementation and enforcement capacity 

Georgia is a transit country located on the Caucasus drugs route, used among other things for 
smuggling heroin from Iran to Türkiye and onwards into the EU. Drug seizures also include 
hemp  and  cannabis.  Addressing  drug  transit  and  drug  trafficking  is  one  of  the  biggest 
challenges of the law enforcement system, as outlined in the National Strategy on Combating 
Organised Crime. The Ministry of Internal Affairs continuously implements measures aimed 
at reducing illicit drug trafficking. In 2022 3 112 kg of illicit narcotic substances were seized 
(compared with 2 581 kg seized in 2021). In 2022 202 people were accused of illegal sales of 
drugs (136 in 2021). 

The  National  Drug  Observatory  has  no  dedicated  budget  but  it  can  rely  on  the  financial 
resources and infrastructure of the Ministry of Justice. Although the laboratory of the Ministry 
of Internal Affairs is well equipped, the implementation of a National Early Warning System 
(NEWS) on new psychoactive substances (NPS) is at an early stage and needs to be developed. 
Both the law enforcement system and the National Drug Observatory are in need of further 
capacity building.  The National Drug Observatory should further improve its reporting and 
effectively make the NEWS operational.  

In  September  2022,  the  MoJ  signed  a  second  technical  cooperation  working  arrangement 
document with the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA). 
Several  national  data  collection  systems  are  available  in  Georgia,  some  compatible  with 
EMCDDA protocols.  

There are two types of treatment available in Georgia for drug users and people with substance 
use disorders (SUD): opioid agonist therapy (OAT) and withdrawal-oriented therapy, including 
detoxification.  Methadone  maintenance  therapy  (MMT)  is  available  only  in  public  clinics. 
Suboxone maintenance therapy is available in both public and private clinics. The country has 
relevant regulatory framework and standards for treatment management, and the EMCDDA’s 
treatment  demand  indicator  has  been  in  operation  since  2021.  Psychosocial  rehabilitation 
capacities and possibilities are still limited and need further development. In Georgia, harm 
reduction  programmes  are  implemented  by  low-threshold  service  providers,  which  are 
members of the Georgian Harm Reduction Network (GHRN). Services are funded mainly by 
the Ministry of Health and the Global Fund to Fight AIDS, Tuberculosis and Malaria, and in 
some cases by other independent projects.  

Fight against terrorism 

Institutional set-up and legal alignment 

A  permanent  interagency  commission,  composed  of  high-level  representatives  from  all 
agencies responsible for preventing and combating terrorism, is chaired by the State Security 
Service  of  Georgia  (SSSG).  The  SSSG  is  responsible  for  terrorism-related  incidents  and 
investigations, including cases of terrorism financing and cyber-terrorism. 

Anti-terrorism legislation is largely aligned with the EU acquis and relevant international law, 

46 

 
 
including UN Security Council Resolutions. It is a criminal offence to use Georgia’s online 
space  to  support  terrorism  and/or  incite  terrorism.  Georgia  has  a  legislative  framework  on 
protecting  critical  information  infrastructure,  though  the  overall  critical  infrastructure 
protection framework is still being prepared.  

Georgia has a comprehensive legal framework in place to criminalise terrorism financing and 
has  adopted  a  law  on  facilitating  measures  to  counter  money  laundering  and  terrorism 
financing. Georgia continues to be only partly compliant with the Financial Action Task Force 
recommendation relating to an independent financial investigation unit/financial intelligence 
units. 

A national  counterterrorism  strategy for  2022-2026  and the corresponding action plan were 
adopted  in  2022.  The  2021-2030  national  strategy  on  reducing  chemical,  biological, 
radiological and nuclear threats also covers arms control in each of these domains.  

The  first  money  laundering  and  terrorist  financing  risk  assessment  was  adopted  in  October 
2019. The  Government  adopted the Report on  Money Laundering and  Terrorism  Financing 
Assessment Risks in Georgia on 3 October 2023. Following the 2020 evaluation by the Council 
of Europe’s Moneyval committee, Georgia has been in an enhanced follow-up procedure. In 
the first follow-up report, Georgia was, for one recommendation (financial intelligence unit), 
upgraded from ‘partially compliant’ to ‘largely compliant’. The upgrade was possible because 
of  the  amendments  to  the  Law  on  anti-money  laundering/counter-terrorism  financing 
(AML/CFT). Georgia also amended the AML/CFT law in order to fulfil the relevant FATF 
recommendations.  

Implementation and enforcement capacity 

Georgia  is  involved  in  international  efforts  in  the  fight  against  terrorism  and  is  an  active 
member of the Global Coalition against Daesh (ISIS). Georgia has signed bilateral international 
agreements that include cooperation in the fight against terrorism with 29 partner countries, of 
which 17 are EU Member States.  

In May 2022, five individuals were convicted of membership of a terrorist organisation, joining 
a  foreign  terrorist  organisation  and  assisting  in  terrorist  activities.  They  were  sentenced  to 
imprisonment for a term of 10 to 12 years.  

The  SSSG  detained  a  Georgian  citizen  on  his  arrival  at  Tbilisi  International  Airport  in 
December 2022 and brought charges against him for joining a foreign terrorist organisation 
and assisting in terrorist activities. He was detained as a measure of constraint. 

Following a special operation, in 2023 the SSSG’s counterterrorism centre arrested a Georgian 
citizen who was an ISIS leader, on the basis of court decision. An investigation was launched 
under  the  Criminal  Code,  which  criminalises  joining  a  foreign  terrorist  organisation  and 
supporting it in terrorist activities. In May 2023, the counterterrorism centre arrested a number 
of  ISIS  supporters  (six  Georgian  citizens  and  one  foreign  national.  Investigations  were 
launched.  

In December 2022, the SSSG further expanded cooperation with Europol’s three operational 
analysis projects on counterterrorism (on ‘Travelers’, Terrorist Finance Tracking Programme 
and ‘Check the Web’) and joined the Counter Terrorism Joint Liaison Team (CT JLT).  

Judicial cooperation in civil and criminal matters 

Georgia is a member of The Hague Conference on Private International Law and party to six 
of  its  core  conventions,  including  the  Convention  on  service  of  documents  (1965),  the 
Convention  on  the  taking  of  evidence  (1970)  and  the  Convention  on  international  child 

47 

 
 
abduction (1980). 

Georgia has not ratified the Convention on Choice of Court agreements (2005), the Convention 
on the international recovery of child support and other forms of family maintenance (2007) 
and its Protocol on the law applicable to maintenance obligations, nor the Convention on the 
recognition  and  enforcement  of  foreign  judgements  in  civil  or  commercial  matters  (2019). 
Georgia has appointed a Liaison Prosecutor at Eurojust. 

Georgia’s  Law  on  international  cooperation  in  criminal  matters  provides  the  basic  legal 
framework for judicial co-operation in criminal matters. Cooperation in criminal matters, as 
well  as  recognition  and  enforcement  of  foreign  judicial  decisions  outside  the  framework  of 
bilateral agreements and conventions, is allowed based on special agreements or reciprocity 
with other countries. The MoJ and the Prosecutor’s Office, as the central authorities designated 
in  accordance  with  international  agreements,  manage  Georgia’s  international  judicial 
cooperation in civil and criminal matters. 

The  Prosecution  Service  of  Georgia  concluded  a  working  arrangement  with  the  European 
Public Prosecutor’s Office (EPPO) on 28 September 2022. 

Foreign judicial decisions are legally enforceable in Georgia if recognised by a competent court 
in Georgia, under the conditions outlined in the Law on international cooperation in criminal 
matters. The Convention on international child abduction is implemented efficiently. Georgia 
does not have a practice of direct judicial communication with countries outside the EU. 

All aspects of customs cooperation are covered under Chapter 29 – Customs union. 

Legal and irregular migration 

Institutional set-up and legal alignment 

The State Commission on Migration Issues (SCMI) has, since 2010, been the Government's 
consultative body for discussing and taking decisions on various important issues related to 
migration management.  

As of 2022, the SCMI has nine line ministries as fully-fledged members and a number of bodies 
with  consultative  status  (international  and  local  NGOs,  the  Public  Defender’s  Office  and 
educational/research institutions). The SCMI and its secretariat are in charge of developing and 
implementing  Georgia’s  migration  strategy,  coordinating  migration  management  and 
developing  and  monitoring  the  strategy’s  annual  action  plans.  The  existing  institutional 
architecture is well established and functions effectively.  

The  2021-2030  migration  strategy  covers  the  improvement  of  migration  management, 
facilitating legal migration, the fight against irregular migration, the reintegration of returned 
migrants,  an improved asylum system  and the integration of aliens. The strategy includes a 
whole-of-government  approach  and  considers  gender  equality  and  human  rights  issues  as 
cross-cutting ones. Annual action plans are developed and implemented by the relevant line 
ministries. 

Amendments  to  the  Law  on  labour  migration  were  prepared  by  the  Ministry  of  Internally 
Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs, and were 
adopted by Parliament in May 2023. The amendments aim to refine existing legal norms and 
enforcement mechanisms in terms of labour emigration and immigration.  

The fight against irregular migration and the administration of the Temporary Accommodation 
Centre are led by the MIA. The 'Procedure for Detaining and Accommodating Aliens in the 
Temporary  Accommodation  Centre'  was  amended  on  25  July  2023  and  the  ‘Rule  for 
Accommodation of the Asylum-seeker in the Reception Centre or Another Place’ was amended 
48 

 
 
on 17 August 2023. 

Georgian legislation on foreigners is broadly in line with the EU  acquis. It provides for the 
nonrefoulement principle, and for a maximum detention time for irregular migrants in detention 
centres. The legal framework needs to be further aligned regarding migrants’ rights, notably 
for vulnerable migrants.  Georgia joined the European Migration Network as an observer in 
2021. 

Georgia has readmission agreements with the EU (in force since 2011) and bilaterally with 
Denmark as well as with the UK, Switzerland, Norway, Iceland, Montenegro, the Republic of 
Moldova, Belarus and Ukraine. Under the aegis of the EU agreement, it has concluded bilateral 
implementing protocols with 12 EU Member States8. Georgia is in the process of concluding 
(i) further bilateral implementing protocols with the remaining EU Member States and (ii) is 
negotiating readmission agreements with additional countries.  

Implementation and enforcement capacity 

In 2022, there were 580 illegal crossings of Georgia’s borders (Art. 344 CCG), compared to 
438  in  2021.  In  the  area  of  migrant  smuggling,  Georgia  cooperates  with  international 
organisations and partner countries in the framework of police and international cooperation 
on combating cross-border crime. 

The implementation of the Readmission Agreement with the EU is very good, as corroborated 
in the last Joint Readmission Committee meeting in November 2022. In 2022, 8 045 Georgians 
returned to Georgia following an order to leave. Of these, 2 870 fall under the assisted voluntary 
category, 3 375 under assisted forced return and 1 560 were non-assisted voluntary returnees. 

The overall level of coordination of migration management in the country is well-designed. 
The recent changes in Georgia’s migration landscape, caused by the Russia’s war of aggression 
against Ukraine, highlighted existing challenges in migration management. The government 
demonstrated  an  openness  to  refugees  and  Ukrainian  citizens  with  its  limited  long-term 
strategy. 

In  recent  years,  the  MIA  took  major  steps  to  improve  the  effectiveness  of  detection  and 
expulsion mechanisms for individuals staying in Georgia without a permit, in accordance with 
existing international standards. In 2022, 165 legal expulsion orders were executed by the MIA, 
mostly for citizens of Iran, Türkiye and Azerbaijan.   

The only Temporary Accommodation Centre (TAC), operated by the Migration Department of 
the MIA, can accommodate up to 60 detainees. In 2022, 73 foreigners were placed in the TAC 
(including a high number of citizens of Türkiye (23) and Azerbaijan (10)) . In the first quarter 
of 2023, there were 38 foreigners placed in TAC. TAC has the policy to prevent all forms of 
discrimination  and  a  mechanism  to  report  ill-treatment,  and  constant  efforts  are  made  to 
improve both the conditions in the centre and the capacities of the personnel working there. 
Staffing situation is good.  

2022 was an exceptional year in terms of returns to Georgia, reaching the highest number ever: 
2 945 persons from 31 countries. In 2022, Greece outnumbered all other countries with 55.69%, 
followed by Germany (23.19%), Austria (4.92%), France (3.46%) and Switzerland (3.43%).  

8 Belgium, Bulgaria, Czechia, Germany, Estonia, Lithuania, Luxembourg, Hungary, Netherlands, 
Austria, Romania, Slovakia. 

49 

 
 
 
The  reintegration  programmes  of  retuning  migrants  need  improvement  as  they  do  not 
sufficiently address the specific needs of all categories of returnees (e.g., vulnerable returnees 
groups versus highly skilled migrants). 

The  Agency  of  Internally  Displaced  Persons,  Eco-migrants  and  Livelihood  Provision  (the 
Livelihoods Agency), operating under the Ministry of Internally Displaced Persons from the 
Occupied  Territories,  Health,  Labour  and  Social  Affairs  (MoLHSA)  is  not  sufficiently 
budgeted to deal with the challenges of return and re-integration of migrants. Recognising this 
limitation, the draft Reintegration Policy has been developed by MoLHSA, introducing a more 
holistic approach to  reintegration based on the whole-of-government  approach. The draft is 
under interagency review and is expected to be endorsed by September 2023. MoLHSA plans 
the  establishment  of  a  returned  migrants  registration  and  reintegration  management  digital 
system.  

Asylum 

Institutional set-up and legal alignment 

Asylum procedures are the responsibility of the migration department of the MIA. 

Georgia  is  a  party  to  the  1951  Geneva  Convention  on  the  status  of  refugees  and  its  1967 
Protocol. Legislation on asylum is broadly in line with the EU acquis, notably on improved 
reception  standards  and  the  rights  of  asylum  applicants  such  as  rights  for  employment, 
secondary  education,  psychological  and  social  aid,  reunification  of  families  and  subsidiary 
protection. As to  the alignment of legislation and standards regarding interview techniques, 
access to rights and legal aid, international partners, in particular the UNHC, report that this is 
sufficiently addressed.  

A programme for the integration of persons under international protection, asylum seekers and 
stateless persons is run by the Livelihoods Agency and the MoLHSA agency. 

Cooperation between Georgia and the European Union Agency for Asylum (EUAA) started in 
2013.   

Implementation and enforcement capacity 

According to MIA data, in 2022, 1 473 individuals applied for asylum in Georgia.  

The top countries of origin were Ukraine (516 in 2022, 3 in 2021), Türkiye (203 in 2022, 137 
in 2021), Iran (194 in 2022, 125 in 2021) and Russia (115 in 2022, 54 in 2021).  

Most asylum seekers were male, and the biggest age group was 26-40 years old, followed by 
41-65 years old. The gender distribution (i.e. mostly male) is similar in the case of the major 
countries of origin. However, in the case of Ukraine, more women applied for asylum than 
men.  

Numerous challenges in asylum/migration management appeared with the influx of Ukrainian 
nationals into Georgia. Around 24 000 Ukrainian citizens were living in the country as of the 
first quarter of 2023. They have been granted an extended stay in the country for 2 years. They 
enjoy certain access to health and social services. Given the increase in asylum applications, 
the only state-run reception centre is full, and some asylum-seekers have turned to the UNHCR 
for assistance with accommodation. Services for vulnerable asylum-seekers, such as those in 
need of psychological or psychiatric treatment, are largely lacking and are fulfilled by a number 
or grass-roots CSOs, many of them established by the Ukrainian nationals themselves. 

Another challenge for asylum management is the high number of stranded migrants in Georgia 
who  turn  to  the  asylum procedure  after  they  fail  to  obtain  or  extend  a  short-term  residence 

50 

 
 
permit.  This  illustrates  that  the  various  stages  of  the  country’s  immigration  policy  (visa, 
admission into the country and residence) are not fully synchronised with each other. 

Visa policy 

The main authorities responsible for examining visa applications are the Consular Department 
of the Ministry of Foreign Affairs (MFA) and Georgia’s diplomatic missions and consular posts 
abroad. The visa register/database is hosted by the MFA. Visa legislation is broadly in line with 
the EU acquis, but the list of non-EU countries with which Georgia maintains visa-free regimes 
is not fully aligned with the list of non-EU countries whose nationals are subject to a visa for 
short stays in the EU. There are 17 such countries: Ecuador, Iran, Jordan, Kazakhstan, Kuwait, 
Kyrgyzstan, Lebanon, Oman, Qatar, Russia, Saudi Arabia, South Africa, Tajikistan, Thailand, 
Türkiye,  Turkmenistan  and  Uzbekistan.  The  Commission  issued  a  recommendation  for 
Georgia  to  align  its  visa  policy  to  the  EU  in  its  sixth  report  under  the  Visa  Suspension 
Mechanism9.    Security  features  of  visas  and  travel  documents  are  broadly  aligned  with  EU 
standards. 

Georgia does not have agreements with non-EU countries to issue visas on its behalf. Individual 
activities  related  to  the  issuance  of  visas  can  be  entrusted  to  a  non-EU  country  only  under 
conditions determined by an international agreement or treaty. 

The implementation of the visa-free regime with the EU, which has been in place since 2017, 
is globally satisfactory. Overall, Georgia continues to fulfil the visa liberalisation benchmarks 
and has taken action to address the Commission’s previous recommendations. The law on pre-
departure checks  on the  credentials  of Georgian  nationals  who wish to  travel  to  the EU (in 
place since January 2021) continues to be implemented by the MIA’s Patrol Police Department 
at the country’s three international airports and at the Sarpi border crossing point.  

According to the MIA, in 2021 there were 1 952 cases (1 896 unique individuals) and in 2022 
2 726 cases (2 667 unique individuals) of Georgian citizens being denied exit to board a direct 
flight  to  the  EU,  based  on  insufficient  compliance  with  the  basic  criteria  of  Georgia’s  pre-
departure  law.  Further  effort  is  needed  to  address  unfounded  asylum  applications  in  EU 
Member  States,  in  line  with  the  recommendation  issued  in  the  sixth  report  under  the  Visa 
Suspension Mechanism. In 2022, a record number of 28 797 Georgians applied to the EU+ 
countries for asylum10. 

Schengen and external borders 

Institutional set-up and legal alignment 

Border  management  is  the  responsibility  of  the  MIA,  the  Ministry  of  Finance  (Revenue 
Service) and the Ministry of Defence. 

Under the MIA, the Georgian border police are responsible for protecting state borders (land 
and  maritime)  and  the  Patrol  Police  Department  is  responsible  for  the  state  border  regime 
(document  checks  and  border  migration  control)  at  border  crossing  points.  Border  control 
legislation is partly aligned with the EU/Schengen acquis. The Georgian Air Code obliges the 
air  carrier  to  communicate  advance  passenger  information/passenger  name  records 
(API/PNR) to the authorised state institution. Exactly which information should be provided 
under the API/PNR and the terms and conditions of its management is defined by Georgian 
implementing legislation. 

The Integrated Border Management strategy for 2023-2027 was approved by the government 

9 COM(2023) 730 final 
10 https://euaa.europa.eu/latest-asylum-trends-annual-overview-2022#footnote5_t7thsbh. 

51 

 
 
 
on 9 March 2023. The strategy determines the priorities for 2023-2027 to further improve the 
government’s integrated border management system. It includes a chapter on cooperation with 
the European Border and Coast Guard Agency (Frontex) and, in general, follows the structure 
of similar strategic documents adopted by Member States of the European Union. The strategy 
lacks a particular emphasis on several cross-cutting elements, in particular human rights and 
gender  aspects.  It  envisages  that  the  Frontex  handbook  on  fundamental  rights  in  border 
guarding  will  be  integrated  by  the  MIA  Academy  of  Georgia  within  the  national  training 
the  strategy 
curricula.  Furthermore, 
implementation,  essential  for  guiding  the  National  Security  Council  in  conducting  regular 
monitoring  and  evaluation  exercises,  was  excluded  from  the  final  draft.  Only  general 
monitoring  principles  are  included.  This  undermines  the  oversight  of  the  strategy  and 
monitoring and evaluation (M&E) mechanism.  

the  chapter  on  monitoring  and  evaluation  of 

lmplementation and enforcement capacity 

Further  improvement  of  border  guard  training  modules  and  training  on  implementation 
methods is needed. A trend of high outflow of personnel is observed at border crossing points, 
as well as at the green border (land border crossing points). This would need to be assessed and 
could serve as a basis for further support. 

Border checks satisfy minimum standards, although there is a need for additional technical 
and human resources to improve their quality. The MIA’s border management and coordination 
division oversees the preparation of border management strategic documents, establishing a 
unified border risk analysis system and coordinating activities by analytical units involved in 
the border management process in terms of border risk assessment. 

Since 2021, the amended Law on the rules and procedures for Georgian citizens exiting and 
entering Georgia is enforced and establishes criteria under which a Georgian citizen may be 
denied issuance of a passport required to temporarily leave Georgia and may be denied crossing 
the  state  border  when  travelling  to  a  Member  State  of  the  European  Union  or  a  Schengen-
associated country. The abovementioned criteria partially reflect the entry conditions for third-
country nationals provided in the Schengen Borders Code. 

Georgia’s  risk  assessment  methodology  is  based  on  the  common  integrated  risk  analysis 
model (CIRAM) developed by Frontex and includes the three factors  –  threat, vulnerability 
and impact – defining border risks.  

Customs risk management is fully automated and implemented in the automated customs data 
system and databases for border crossing of passengers, goods and vehicles moving through 
the customs border and customs clearance processes. The MIA has not yet fully operationalised 
the information flow and intelligence cycle layouts at all levels of analysis (tactical, operational 
and strategic). A systematic intra- and inter-agency information exchange between the agencies 
and/or departments involved needs to be set up.  

Inland measures and the fight against cross-border organised crime requires improvement in 
investigations  and  prosecution  of  criminal  offences.  Fighting  human  trafficking,  migrant 
smuggling, firearms trafficking and terrorism require more efficient delineation of jurisdictions 
and  powers.  Exchange  of  criminal  intelligence  and  biometric  data  requires  significant 
improvements. Approaches to countering transnational crime remain fragmented and largely 
based on disconnected efforts by different units of the MIA, Revenue Service and the State 
Security Service of Georgia .  

From  an  investigation  standpoint,  serious  crimes  require  more  efficient  delineation  of 
responsibilities  and  powers.  Currently,  Georgia  does  not  see  smuggling  of  migrants  as  a 

52 

 
 
separate phenomenon from irregular migration. Responsible entities and departments mainly 
deal  with  each  case  of  illegal  border  crossing  (or  attempted  illegal  border  crossing) 
individually, based on their narrow remit, without really looking into the background of a crime 
and who stands behind  it.  The practice of changing identity in  Georgia still  seems  possible 
based on several cases detected in recent years. This modus operandi by Georgian nationals is 
used  to  avoid  Schengen  Information  System  (SIS)  hits,  thereby  evading  detection  at  the 
European  Union’s  external  borders  in  case  of  entry  ban  or  arrest  warrant.    To  identify  and 
dismantle  transnational  migrant  smuggling  networks,  Georgia  needs  to  set  up  a  unified, 
comprehensive approach for  thorough intelligence collection and investigation . 

The MIA has proactive cooperation with Europol’s European Migrant Smuggling Centre (AP 
Migrant Smuggling). Information on the investigation of criminal cases conducted in Georgia 
in  the  field  of  irregular  migration  is  shared  with  the  Centre.  Georgia  cooperates  with 
INTERPOL on combating the illegal transfer of migrants and trafficking in human beings. To 
this end, in June 2022, Georgia joined the ‘ODYSSEY’ project initiated by Interpol Member 
States.  

Concerning  API/PNR,  Georgia  now  receives  passenger  data  from  almost  60%  of  airlines. 
Passenger data analysis is currently conducted by each body (MIA, RS, SSSG) separately. To 
efficiently fight terrorism and serious crime, Georgia needs  to (i) establish a joint inter-agency 
passenger information unit (PIU), (ii) develop information sharing schemes between different 
bodies and (iii) develop PIU analytical capacities. 

The MIA signed a working arrangement with Frontex in 2008, which was renewed in 2021. 
The common core curriculum developed by Frontex is implemented in border-related courses 
provided  to  border  police  and  Patrol  Police  officers  by  the  Ministry  of  Internal  Affairs 
Academy. Georgia is  an associate member of  the Frontex Partnership  Academies  Network. 
Georgia  participates  in  the  joint  operation  coordination  points,  aimed  at  improving  border 
security,  operational  cooperation  and  the  exchange  of  information  and  best  practice  among 
participating countries. Georgia is one of the most frequent destinations for Frontex returns by 
both scheduled and charter flights. The overall cooperation with Georgian authorities, as well 
as  the  efficiency  of  returns  to  Georgia  has  been  very  good.  Moreover,  Frontex  is  currently 
exploring opportunities for more advanced cooperation with Georgia in coast guard functions. 

Cooperation is active with the Frontex risk analysis network. The Frontex Liaison Officer to 
the Eastern Partnership countries has been physically deployed to the region as of 16 July 2022 
with a mandate covering all six countries, including Georgia. Among the main tasks, the officer 
facilitates  the  implementation  of  inter-institutional  working  arrangements  and  supports  the 
coordination of joint activities and operational cooperation between Frontex and the countries 
in the region. 

On operational cooperation with neighbouring countries, Georgia has bilateral agreements 
with neighbouring countries, mainly on customs: Azerbaijan, Armenia, Türkiye and Russia. 
There is an agreement between the governments of Georgia and Azerbaijan to construct the 
first joint border crossing point in the region. 

Some measures are in place to fight corruption on the border, in particular the possibility to 
conduct inspections when disciplinary norms are violated and to impose disciplinary penalties. 

Protection of the euro against counterfeiting (criminal aspects) 

In 2000, Georgia acceded to the 1929 Geneva Convention for the suppression of counterfeiting 
currency but has not yet ratified it. The Criminal Code (Article 212) provides for liability for 
counterfeiting. 

53 

 
 
2.3. ECONOMIC CRITERIA 

Table 1.1: 
Georgia - Key economic figures 
GDP per capita (% of EU-27 in PPS)1) 
Real GDP growth  
Economic activity rate of the population aged 15-64 (%), 
total 
      female 
      male 
Unemployment rate of the population aged 15-64 (%), 
total 
      female 
      male 
Employment of the population aged 15-64 (annual 
growth %) 
Nominal wages (annual growth %) 
Consumer price index (annual growth %) 
Exchange rate against EUR 
Current account balance (% of GDP) 
Net foreign direct investment, FDI (% of GDP) 
General government balance (% of GDP) 
General government debt (% of GDP) 

2014-19 
average 

2020 

2021 

2022 

31.9 
4.2 

53.9 

44.8 
64.5 

20.8 

18.6 
22.6 

0.1 

6.5 
3.8 
2.82 
-9.0 
8.0 
-1.5 
39.5 

33.6 
-6.8 

50.5 

40.4 
62.0 

18.5 

16.2 
20.2 

-4.2 

5.4 
5.2 
3.55 
-12.4 
3.6 
-9.3 
60.1 

34.5 
10.5 

50.9 

40.5 
62.9 

20.6 

17.8 
22.7 

-2.0 

9.5 
9.6 
3.81 
-10.4 
4.9 
-6.1 
49.4 

37.1 
10.1 

51.9 

41.5 
64.0 

17.3 

14.6 
19.3 

5.4 

22.0 
11.9 
3.08 
-4.0 
6.7 
-2.7 
39.8 

Source: National sources; 1) IMF.   

In  line  with  the  conclusions  of  the  European  Council  in  Copenhagen  in  June  1993,  EU 
accession requires the existence of a functioning market economy and the capacity to cope with 
competitive pressure and market forces within the Union.  

2.3.1 The existence of a functioning market economy 

Georgia is moderately prepared for establishing a functioning market economy. In 2022, the 
country continued its strong recovery from the 2020 pandemic-induced recession. Real GDP 
growth exceeded 10% for the second year in a row, where the outturn in 2022 was positively 
affected  by  the  indirect  impact  of  Russia’s  war  of  aggression  against  Ukraine,  including  the 
inflow  of  migrants  from  Russia  and  their  spending.  Georgia’s  external  position  improved 
significantly  in  2022,  following  high  deficits  in  previous  years.  While  inflation  remained 
elevated  in  2022,  it  fell  sharply  in  early  2023.  The  combination  of  high  economic  activity, 
elevated  inflation  and  a  stronger  currency,  accompanied  by  the  unwinding  of  the  pandemic-
driven  support  measures  by  the  authorities,  led  to  a  significant  reduction  in  Georgia’s  fiscal 
deficit and public debt ratios in 2022, to 2.7% and 39.8% of GDP, respectively.   

Georgia demonstrates a satisfactory track record in carrying out sound macroeconomic policies. 
Prudent fiscal policy before the pandemic (with deficits averaging 1.5% of GDP in 2014-2019, 
and public debt below 40% of GDP in 2019) allowed the authorities to provide significant fiscal 
stimulus after the outbreak of COVID-19. The central bank has a track record of successfully 
containing inflationary pressures (inflation averaged 3.8% in 2014-2019) and its policy response 
to the crisis appears appropriate in view of the size of the shock. The macroeconomic policy mix 
in 2022 helped building resilience and supported a balanced and strong economic recovery that 

54 

 
 
  
  
  
  
  
 
 
 
 
 
 
 
helped the country weather well the sizeable external shocks related to the war in Ukraine. It also 
contributed to some consolidation of the country’s fiscal position. 

The institutional and regulatory environment is favourable overall. Some challenges persist, in 
particular as regards the unfinished judicial reform, the adverse impact of political polarisation 
on business confidence, and a large degree of political control over public institutions and their 
limited transparency. The strong economic activity in 2022 led to significant improvements in 
the labour market which, however, continues to be characterised by a very high unemployment 
rate  and  a  high  share  of  informal  employment.  The  share  of  state-owned  enterprises  in  the 
economy is relatively low and the authorities continue to pursue important reforms of corporate 
governance. The banking sector is well capitalised and shows high liquidity and profitability, 
although the non-banking segments of the financial sector remain underdeveloped.  

In the coming year, Georgia should in particular: 

→  continue  to  implement  prudent  fiscal,  monetary  and  other  policies  underpinning 
macroeconomic  and  financial  stability,  in  particular  in  view  of  a  potential  reversal  of  the 
financial flows related to the new Russian migrants; 

→  address the main weaknesses in the Georgian labour market, such as the low employment 
rate, high level of informal employment, as well as significant gender disparities and regional 
differences;  

→  further develop the non-banking segments of the financial sector.  

Economic governance  

The  authorities  continued  to  implement  sound  fiscal  and  monetary  policies  and  to 
advance  economic  reforms.  Georgia  has  a  good  track  record  in  carrying  out  prudent 
macroeconomic policies, which have helped it address various recent external shocks. In 2022, 
the  authorities  weathered  well  the  fallout  from  Russia’s  war  of  aggression  in  Ukraine  by 
preserving  macroeconomic  stability,  as  reflected  by  strong  economic  activity,  amid  lower 
inflation than in  many peer countries and a contained budget  deficit. The National  Bank of 
Georgia (NBG) has been instrumental in safeguarding macroeconomic stability during recent 
shocks.  In  June  2023,  the  Parliament  adopted  amendments  to  the  Law  on  NBG  that  could 
weaken  its  institutional  independence,  which  is  critical  for  sustaining  the  credibility  of  the 
institution.  

Georgia has progressed on implementing the three-year stand-by arrangement with the 
IMF that started in June 2022. The first review was completed in December 2022. Although a 
staff-level agreement was reached for the second review in May 2023, the review remains on 
hold as IMF staff consider the implications of recent amendments to the NBG law for achieving 
the objectives of the programme. The programme aims at entrenching macroeconomic stability 
by  reducing  fiscal  and  external  deficits  and  bringing  inflation  to  target,  further  enhancing 
financial sector resilience, and stimulating agreed reforms in the governance of state-owned 
enterprises, public financial management, and tax and customs administrations. The authorities 
treat  the  arrangement  as  precautionary,  i.e.  with  disbursements  envisaged  only  in  case  of  a 
deterioration of Georgia’s external position.   

Macroeconomic stability 

Economic activity recovered strongly in 2021 and 2022 from the recession induced by the 
COVID-19 pandemic in 2020. Real GDP growth  reached double-digit levels  in  both  2021 
(10.5%) and 2022 (10.1%). As a result, by the end of 2022, economic output was more than 
13%  higher  than  its  pre-pandemic  level.  This  translates  into  still  low  GDP  per  capita  in 

55 

 
 
purchasing  power  parity  of  37%  of  the  EU  average  in  2022.  While  2021  GDP  growth  was 
driven  by  household  and  government  consumption,  the  2022  expansion  was  the  result  of  a 
strong positive impact from net exports, to a large extent driven by the services sector due to 
the  ongoing  recovery  of  tourism,  the  inflow  of  Russian  migrants,  as  well  as  by  a  delayed 
activity. 
rebound 
Despite  the  increase  in  real  wages, 
household  consumption  declined  in 
real  terms  in  2022, on account  of the 
high  base  but  also 
the  elevated 
inflation during the year. Government 
consumption  also  contracted  as  the 
authorities  continued  to  phase  out 
support  measures  introduced  as  a 
response to the pandemic.  

investment 

in 

Georgia  exhibits  a  high  (albeit 
decreasing)  current  account  deficit 
due to its significant deficit in trade with goods. The current account deficit averaged 9.0% 
of GDP in 2014-2019. It then widened to above 10% of GDP in 2020-2021, before narrowing 
to a record-low 4.0% of GDP in 2022. In particular, the surplus in services increased sharply 
to 10.9% of GDP in 2022 from 3.9% of GDP in 2021, thanks to the recovery of the tourism 
sector and a strong rise in exports of IT services. Georgia’s merchandise trade deficit remained 
high  at  20.7%  of  GDP  in  2022,  a  reflection  of  its  relatively  narrow  export  base.  While  the 
deficit on the primary account rose on the back of an increase in reinvested earnings by foreign 
companies,  the  surplus  on  the  secondary  account  increased  thanks  to  growing  remittances. 
Money transfers from Russia surged fivefold. 

Georgia  managed  to  increase  its 
foreign  exchange  reserves  to  USD 
4.9  billion  at  the  end  of  2022  from 
USD  4.3  billion  at  the  end  of  2021 
thanks 
the  narrowing  current 
account  deficit  and  a  sizeable  FDI 
inflow,  as  well  as  foreign  exchange 
purchases  by  the  NBG.  This  meant 
that reserves exceeded the 100% level 
of  the  IMF’s  Assessing  Reserve 
Adequacy  metric.  Supported  by  the 
strong nominal GDP growth and the 
appreciation of the local currency, the share of gross external debt in GDP declined by more 
than 20 percentage points on the year in 2022 and dropped below 100% for the first time since 
2014. 

to 

While consumer price inflation remained elevated in 2022 (11.9% on average), it eased 
sharply  in  2023 to  0.9%  year-on-year  in  August,  well  below  the  central  bank’s  3%  target. 
Before the pandemic, inflationary pressures were muted and largely neutralised by the sound 
policies of the central bank. The disinflation in 2023 reflected the pass-through from the sharp 
appreciation of the local currency in 2022 (it gained 10% against the USD and 24% against the 
EUR), the tight monetary policy by the central bank and  the stabilisation, and in some cases 
decrease, in global food and energy prices. The introduction of a price cap on pharmaceutical 
prices  in  early  2023  also  supported  the  downward  trend.  Despite  the  lower  consumer  price 

56 

 
 
growth, the central bank kept its tight policy stance unchanged at 11.0% for a long time before 
it started a cautious easing cycle in May 2023, when it reduced the key policy rate by 50 basis 
points,  followed  by  cuts  of  25  basis  points  each  in  August  and  in  September.  This  tight 
monetary  policy  together  with  macroprudential  measures,  has  led  to  a  slowdown  in  credit 
growth in 2022, in particular for households. Credit activity was mainly driven by domestic 
currency loans, as the central bank raised the reserve requirements for loans in foreign currency 
in order to reduce risks to financial stability. This slowdown ended a drawn-out credit boom, 
during which the stock of loans to the national economy in local currency had risen by nearly 
20% on average annually in 2014-2021. 

In  2022,  public  finances  benefited  from  strong  revenue  growth  supported  by  robust 
economic  activity  and  elevated  inflation,  and  from  the  fiscal  consolidation  efforts 
including  unwinding  pandemic 
support and saving some of the 
revenue  windfall.  This  followed 
two years (2020 and 2021) of high 
budget  deficits,  when  the  state 
intervened intensely to contain the 
impact  the  COVID-19  pandemic. 
Before  the  pandemic,  the  budget 
deficit was low at 1.5% of GDP on 
average in 2014-2019, in line with 
the cautious fiscal stance taken by 
the authorities. In 2022, reflecting 
the  high  economic  growth  and 
inflation, general government revenues increased by 30% in nominal terms. At the same time, 
current  expenditure  grew  by  9%  and  capital  outlays  by  24%.  As  a  result,  the  general 
government deficit narrowed to 2.7% of GDP and thus returned below the 3%-of-GDP ceiling 
envisaged by Georgia’s fiscal rules. This outturn was more favourable than had been planned 
in the fiscal consolidation path for 2022 (a deficit of 4.3% of GDP). After a sharp increase of 
approximately 20 percentage points during the pandemic, Georgia’s public debt-to-GDP ratio 
declined rapidly in 2021 and 2022. At 39.8% of GDP at the end of 2022, it returned to its pre-
pandemic level and was well below the 60% of GDP ceiling set by the country’s fiscal rule. 
The improvement of the debt ratio in 2022 was mainly the result of the high nominal GDP 
growth and the substantial appreciation of the local currency. 

The  public  finance  governance  framework  was  further  strengthened.  The  2022  Public 
Expenditure  and  Financial  Accountability  assessment,  using  an  international  methodology, 
showed that  the public finance system performed well, especially as regards transparency of 
public  finances,  predictability  and  control  in  budget  execution,  external  scrutiny  and  audit. 
Based on these results, a new Public Finance Management (PFM) strategy for 2023-2026 was 
prepared. The new strategy focuses on public asset management, revenue arrears monitoring, 
implementation  of  international  public  sector  accounting  standards,  consolidation  of  central 
government financial statements, as well as gender-responsive budgeting. In February 2023 a 
public debt management strategy for 2023-2026 was adopted. It provides for a further shift to 
financing in local currency to minimise foreign exchange risks and deepen the local financial 
market. The authorities have also further developed green budgeting mechanisms. 

In sum, the macroeconomic policy mix has been adequate in terms of coping with sizable 
external  shocks,  helping  to  mitigate  the  impact  on  people  and  businesses,  while 
supporting a strong economic rebound following the pandemic. The authorities phased out 

57 

 
 
pandemic-related spending and increased capital expenditures. They also used the opportunity 
to rebuild fiscal buffers. The reduction of the fiscal deficit and the public debt ratios suggests 
a  considerable  improvement  in  the  fiscal  space,  which  is  essential  in  view  of  the  high 
investments  needs  in  infrastructure  and  education.  Further  improvements  in  revenue 
mobilisation and in managing public investments, including better prioritisation, could improve 
expenditure  efficiency.  The  tight  monetary  policy  helped  manage  inflationary  pressures  in 
2022 and was among the key factors for the sharp slowdown in inflation in early 2023. 

Functioning of product markets  

Georgia’s business environment has been liberalised and the barriers to market entry are 
low. For instance, registering of a company requires just one single procedure and is completed 
within one day at a very low cost. In mid-2023, the number of active business entities was 32% 
higher  than  in  2021,  and  the  number  of  active  solo  entrepreneurs  was  39%  higher.  The 
insolvency  legislation  from  2020  has  facilitated  insolvency  proceedings,  made  them  more 
transparent and reduced their duration and costs.  

The institutional and regulatory environment is favourable overall, but some challenges 
persist. Georgia scored very well on regulatory quality (close to EU average) and government 
effectiveness  (better  than  some  Member  States),  as  measured  by  the  2022  World  Bank’s 
Worldwide  Governance  Indicators.  Georgia  has  a  comparatively  low  level  of  perceived 
corruption. It was ranked 41st out of 180 countries in the 2022 Transparency International’s 
corruption perception index. However, some challenges related to the business environment 
persist.  They  include  reduced  business  confidence  due  to  deep  political  polarisation  and 
political control over many public institutions and the prevalence of vested interests. Stalled 
judicial  reform  and  inefficiencies  of  the  court  system  are  also  considered  as  weaknesses  in 
terms  of    protecting  property  rights,  and  thus  constitute  obstacles  to  Georgia’s  investment 
climate.   

The  authorities  introduced  or  expanded  a  number  of  business  support  programmes, 
aimed in particular at small and medium enterprises (SMEs), in line with Georgia’s  SME 
development strategy and its action plan. These measures included providing micro-grants to 
SMEs, introducing growth hubs (business incubators) to provide local SMEs with advisory and 
digital services, and providing export promotion and assistance to foreign investment projects 
in some sectors.  

The state footprint in the economy is modest. State-owned enterprises (SOEs) accounted for 
3.5% of the value added of Georgian companies and 8% of employment in 2022. Three SOEs 
were privatized in 2022, four were liquidated and two filed for bankruptcy. The total amount 
of  state  aid  issued  by  public  bodies  in  Georgia  and  reported  by  the  Georgian  National 
Competition Agency was very low at GEL 3 million (below EUR 1 million). The scope of state 
aid reported in Georgia diverges from the EU acquis and is much narrower.  

Corporate  governance  reform  for  the  remaining  SOEs  is  among  the  government’s 
priorities  and  is  progressing  well.  In  December  2022,  the  government  adopted  the  public 
corporation reform strategy for 2023-2026 and a respective action plan for its implementation. 
The strategy envisages a dual model for SOE ownership (50% of shares in each SOE for the 
Ministries  of  Finance  and  Economy,  respectively),  operation  on  the  basis  of  commercial 
principles,  selection  of  independent  supervisory  boards  and  avoiding  quasi-fiscal  activities 
unless  explicitly  mandated  and  compensated,  in  line  with  international  best  practices.  The 
implementation of the strategy started with a pilot project covering three public corporations: 
Georgian Railways, United Airports of Georgia and Gas Transportation Company. 

The share of the informal sector in Georgia's economy is considered to be substantial, but 
58 

 
 
is difficult to measure11. A significant part of workers are employed informally, most of them 
in agriculture or in seasonal jobs. Informality significantly reduces the country’s tax revenues, 
exacerbates poor working conditions and distorts competition.  Further efforts are needed to 
promote formalisation, adjust tax policy measures and stimulate digital payments. 

Functioning of the financial market 

The Georgian banking sector remains sound. It is strongly concentrated in the two largest 
domestic banks, out of 14 in total. At the end of the first quarter of 2023, the banking system’s 
capital adequacy ratio stood at a comfortable 20.8% and most lenders remained very profitable 
(29% return on equity). Asset quality continued to improve as the ratio of non-performing loans 
decreased from 5.2% at the end of 2021 to 3.8% at the end of the first quarter of 2023. Due to 
measures undertaken by the central bank (such as non-remuneration of the minimum reserves 
in foreign currencies kept by banks at the national bank) coupled with rising USD and EUR 
interest  rates,  the  share  of  loans  and  deposits  in  foreign  currencies  (dollarisation)  declined 
substantially from 51% and 58% respectively at the end of 2021 to 44% and 52% in the first 
quarter of 2023. The inflow of Russian migrants contributed to a substantial increase in deposits 
in Georgian banks.   

Non-banking segments of the financial sector remain underdeveloped. Georgia’s insurance 
sector is small with 18 insurance companies and at total insurance premium of GEL 910 million 
in 2022 (1.3% of GDP). The largest part of this is health insurance. Car insurance is expected 
to grow fast after the introduction of mandatory third party vehicle liability insurance, where 
the respective legislation is being currently finalised by the authorities. In 2022, only 7% of 
cars  in  the  country  were  insured.  The  capitalisation  and  liquidity  of  the  Georgian  Stock 
Exchange (GSE) are limited, with stocks of 8 companies admitted for trading and a total market 
capitalisation of GEL 2.3 billion (3.2% of GDP) in April 2023.  Since its peak in 2007, trading 
activity for stocks listed on the GSE has been decreasing, and a number of Georgian companies 
have  chosen  to  list  on  international  stock  exchanges.  In  December  2022,  the  government 
adopted its 2023-28 capital market development strategy, which focuses on two main goals: 
developing capital market instruments and deepening of the investor base. 

Access to finance has improved in recent years but is still considered as a major obstacle 
by  many  SMEs.  The  central  bank  has  made  substantial  efforts  to  improve  the  regulatory 
framework  and  the  infrastructure  for  digital  financial  services.  The  size  of  financial 
intermediation, measured by the ratio of loans to non-financial sector and households to GDP, 
has increased over the last five years from 55% at the end of 2017 to 62% at the end of 2022, 
as against 90% of GDP in the EU.  Credit growth reached 12.1% year-on-year at the end of 
2022 (excluding the effect of exchange rate fluctuations) and was faster for corporate than for 
retail loans. Nonetheless, access to bank loans continues to be a major obstacle for many small 
and medium enterprises, for instance due to substantial collateral requirements, while non-bank 
sources of finance are largely absent, and the existing financial products and services fail to 
meet the diverse needs of enterprises throughout their lifecycles. To overcome this obstacle, 
Enterprise Georgia, a government agency, facilitates access to finance for the private sector 
through credit guarantees, subsidising interest rates on bank loans and other instruments, while 
the Georgia Innovation and Technology Agency provides targeted support for start-ups. As a 
new measure aimed at stimulating lending to very small companies, especially in agriculture, 
the Parliament approved a law on micro banks which entered into force in July 2023.  

11 According to World Economics (2022), which uses an average of the latest estimates from economists 

around the world, the informal economy represents about 46% of GDP in Georgia, versus an EU average of 
16.9 %. Such estimations need to be taken with caution given the variety of methodological approaches.  

59 

 
 
 
Functioning of the labour market  

The situation on the labour market improved in 2022 but remains characterised by many 
weaknesses.  The  unemployment  rate  increased  from  the  pre-COVID  average  of  19.5%  in 
2017-19 to 20.6% in 2021 and then decreased by over 3 percentage points year-on-year to a 
still high 17.3% in 2022.  The structurally low 
employment rate rose from 40.4% in 2021 to 
42.9% last year. These rates, calculated by the 
national  statistical  office  (Geostat),  are  based 
on  ILO  definitions  covering  the  population 
aged  15  years  or  older  and  are  not  directly 
comparable with Eurostat labour indicators for 
EU countries. The positive trends on the labour 
market  in  2022  can  be  attributed  to  high 
economic  growth,  the  arrival  of  qualified 
migrants following the outbreak of the war in 
Ukraine, but also to more active labour market 
services  provided  by  the  State  Employment 
Support  Agency.  These 
internships,  career  guidance, 
intermediary services and, since March 2022, public works. To analyse the existing mismatch 
between labour skills and business needs, the Ministry of Economy conducted in 2022 a survey 
of business  demand for  skills  on a big  sample of large and small companies. Despite these 
improvements, numerous structural weaknesses in the Georgian labour market persist. A large 
share  of  employment  is  still  focused  on  traditional  sectors  with  low  value-added  (such  as 
agriculture), and the ability of more productive sectors to create opportunities for high-skill 
employment  remains  limited.  Georgia  has  considerable  levels  of  informal  employment 
(estimated by Geostat at 28% of non-agricultural employment), gender disparities and regional 
differences. For instance, the employment rate in 2022 was 52% for men and only 35% for 
women. The share of young people who are neither in employment nor in education or training 
(NEETs) was also very high at 30.7% in 2022, as against the EU average of 11.7%. While 
Georgia’s  labour  market  regulation  is  not  considered  as  distortive,  there  is  some  room  to 
improve  labour  market  intermediation  channels,  facilitate  flexible  working  arrangements  to 
improve employment of women, and enhance vocational training. 

included  vocational 

training, 

In 2022, the average monthly wage increased by 9% in real terms (22% in nominal terms) 
and amounted to GEL 1592 (EUR 517). As in the case of employment indicators, wage levels 
displayed large gender and regional disparities, with men earning on average over 20% more 
than women.  

 2.3.2. The capacity to cope with competitive pressure and market forces within the Union 

Georgia has some level of preparation to cope with competitive pressure and market forces 
within  the  EU.  While  the  country  has  a  strong  track  record  in  attracting  foreign  direct 
investment from the EU, which remains its largest trade partner, the EU’s share in trade has 
been gradually decreasing, in favour of geographically closer economies. The structure of 
the  economy  is  relatively  well  diversified,  albeit  with  a  high  share  of  low  value-added 
sectors.  Its  high  exposure  to  tourism  and  the  low  value-added  base  of  its  exports  makes 
Georgia particularly vulnerable to external shocks.  

Despite  some  progress,  the  limited  level  of  educational  achievement,  quality  and  labour-
market relevance of education weighs on the development of Georgia’s human capital and 
holds back its potential growth. Spending on research and innovation is low and very few 

60 

 
 
firms innovate. The level of investment is broadly comparable to EU, but the quality and 
density of the transport network remains low, despite recent investment in this area. While 
it has developed a stable and reliable energy sector, the country remains heavily dependent 
on imported energy sources. Access to digital infrastructure has improved substantially in 
recent years and is in line with EU levels.  

In the coming year, Georgia should in particular: 

→ further develop its transport and energy infrastructure, in compliance with international 

Public Investment Management standards.  

→  stimulate  innovation  and  make  concerted  efforts  to  support  both  public  and  private 

investment in R&D, also with a view to promoting exports. 

→  Improve the quality of education and training to ensure that their outcomes align with 

labour market needs. 

Education and innovation  

Despite the reforms, the outcomes of the educational system are poor. Public spending on 
education represented 3.6% of GDP in 2021, below the EU average of 5%. While 93% of the 
population has at least upper secondary education, a higher share than the EU average, only 
35%  have  completed  tertiary  education,  as  against  41%  in  the  EU.  However,  available 
indicators  point  to  the  quality  of  education  as  being  rather  low.  For  instance,  Georgia  was 
ranked  only  70th  out  of  77  countries  participating  in  the  2018  PISA  assessment  measuring 
reading outcomes in secondary education, well behind all EU countries. The unified strategy 
for  education  and  science  (2022-2030),  adopted  in  August  2022,  lays  out  priorities  for 
improvements  in  this  area.  They  include  increasing  access  to  early  childhood  education, 
development of a methodology and standards for vocational qualification system, improving 
the quality of higher education and making it more international. 

Spending on R&D was very low at some 0.3% of GDP in the last five years (EU average: 
2.2% of GDP in the same period). Georgia ranked 74th (out of 132 economies) in the 2022 
Global  Innovation  Index  compiled  by  the  World  Intellectual  Property  Organisation.  In 
particular,  the  country  exhibits  weaknesses  in  domestic  industry  diversification,  high-tech 
manufacturing,  software  spending,  intellectual  property  receipts  and  logistics  performance, 
among others. According to a 2022 World Bank report, very few Georgian firms innovate. The 
reasons  include,  a  limited  innovation  ecosystem,  lack  of  dedicated  finance  and  advisory 
services  supporting  innovation,  limited  managerial  capabilities,  a  small  market  and  a  low 
number of engineers and scientists. As a result, only 7% of firms introduce new or significantly 
improved goods or services into the market.  

Physical capital and quality of infrastructure  

Investment in Georgia  represented 22.3% of  GDP in 2022, similar to the EU average, 
having increased by 20% in real terms on the year following significant declines in 2020 
and 2021. However, only a part of this amount was spent on infrastructure. There is a need for 
continued  investments  in  a  range  of  transport  and  energy  infrastructure  projects  to  enhance 
transit trade potential, energy independence, and connectivity with neighbouring countries and 
the EU. There are also some issues regarding the efficiency of public investment, operations 
and  maintenance,  and  challenges  to  leverage  public-private-partnerships.  To  address  these 
challenges,  the  authorities  work  on  improving  the  institutional  framework  for  public 
investment.  For instance, since 2023  all new investment  projects  over  a  specified threshold 
have  to  be  selected  according  to  internationally  recognised  public  investment  management 

61 

 
 
guidelines.  

Georgia has developed a stable and reliable energy sector. However, the country is heavily 
dependent on imported energy. In spite of a very high share of electricity generation coming 
from domestic hydropower (81%), almost all other energy sources, including gas, oil products 
and coal, are imported. The government is focused on securing private investment to construct 
new  hydropower  stations,  wind  and  solar  power  generation,  increase  energy  efficiency  and 
diversify fossil fuel supply sources and routes. In 2022, Georgia developed a support scheme 
for renewable power generation based on competitive bidding. The first auction took place in 
February 2023.  

In  transport,  the  quality  and  density  of  road  and  rail  network  remains  weak  despite 
gradual  improvement.  Poor  transport  infrastructure  hampers  internal  and  external 
connectivity  and  leads  to  poor  road  safety.  The  efforts  on  road  infrastructure  focus  on  the 
construction of the missing part of the East-West Highway (part of European route E60), with 
one of the sections completed in late 2022. Apart from roads, ports and railways also remain 
underdeveloped and face capacity constraints, in part due to lack of sufficient investment.  

Access to digital infrastructure has improved substantially in recent years and is in line 
with EU levels.  92.3% of Georgian households have fixed broadband internet access at home, 
in line with the EU average. 

 Sectoral and enterprise structure 

Tourism and low value-added sectors account for a sizeable share of Georgia’s economy. 
The services sector accounts for approximately 60% of GDP. This share has been relatively 
stable since 2014. Within  services, tourism has been playing an increasingly important  role 
over the years. It was severely hit by the COVID-19 pandemic but has been steadily recovering 
since  then.  The  number  of  international  visits  in  2022  was  some  40%  lower  than  the  peak 
recorded  in  2019  but  tourism  revenues  have  reached  an  all-time  high.  Industry,  including 
construction, is  the second largest  sector of the  economy  with a share of 24.6% of GDP  in 
2022.  Industrial  production  is  dominated  by  low  value-added  sectors:  commodities 
(predominantly metals), agricultural products and food processing. These are also Georgia’s 
key export items. IT and communication was the sector witnessing the strongest expansion in 
2022 and increased its share in GDP by more than one percentage point to 4.7%. While still 
sizeable when compared with the EU average (1.4% of GDP in 2022), agriculture has been 
steadily losing ground and accounted for 7.0% of GDP in 2022, down from 9.6% in 2014. 

As regards employment, the share of people working in agriculture is disproportionately 
high, even if this has decreased in recent years. This suggests continued low productivity in 
the sector, which seems to be a reflection of the still high reliance on small-scale farming that 
hinders economies of scale. People employed in agriculture amounted to 17.9% of the total in 
2022, thus making the sector the biggest employer in the country. It is followed by wholesale 
and  retail  trade  (15.0%),  industry  (11.9%)  and  education  (11.7%).  Construction  and 
transportation are among the sectors that have witnessed the sharpest rise in employment in the 
last five years, and the information and communication sector grew very fast in 2022.   

SMEs  remain key for the Georgian economy despite a gradual  decline in their role in 
recent years. In 2022, they accounted for 37.3% of the turnover and 52.8% of the value added 
by all companies. This is well below the 55.1% and 59.2% respective average annual values 
for the 2014-19 period. At the same time, the number of employees at SMEs went down to 
58.3%  from  67.6%.  Access  to  finance  remains  a  key  constraint  for  the  development  of  the 
sector.  

62 

 
 
Economic integration with the EU and price competitiveness 

Georgia is an open economy with a persistently high merchandise trade deficit driven by 
a relatively  weak domestic export base; its trade integration with the EU is  moderate. 
Following  the  sharp  contraction  caused  by  the  COVID-19  pandemic  due  to  the  hit  on  the 
sizeable tourism sector, Georgia’s trade openness as measured by the ratio of trade with goods 
and  services  related  to  GDP  recovered  strongly  to  117.2%  of  GDP  in  2022.  The  EU  is  the 
country’s main trading partner but its share in the total turnover in merchandise trade has been 
gradually declining due to a stronger increase in nominal trade with non-EU countries. After 
peaking  at  nearly  28%  in  2016,  it  has  gradually  eased  to  20.5%  in  2022.  The  decline  was 
particularly pronounced for Georgia’s exports of goods. The EU’s share in them fell to 15.4% 
in 2022, down from 28.7% in 2015. Georgia has strong links with all its neighbours - Türkiye 
and Russia are the next two biggest trade partners besides the EU.  

Georgia  remains  an  attractive  destination  for  foreign  investments.  In  2014-2019,  FDI 
inflows amounted to nearly 10% of GDP each year on average. Following a short-lived drop 
with the pandemic, they rebounded strongly in 2022 to exceed for the first time USD 2 billion 
(8.3% of GDP). While, similarly to previous years the majority of the FDI reflected re-invested 
earnings that are supported by the favourable tax regime, there was also a significant increase 
in equity investments in 2022. The EU is traditionally the biggest source of FDI for the country. 
In 2018-2022, the EU-27 accounted for 37% of total FDI inflows, followed by the UK (27%), 
Türkiye and the US. The sectoral breakdown of FDI is diversified. The financial sector was by 
far the biggest recipient of FDI (30% in 2018-22), while the real estate, energy, manufacturing, 
trade, entertainment and other sectors also attracted significant investment.  

The  real  effective  exchange  rate  has  appreciated  strongly  following  the  pandemic, 
implying that Georgia’s competitiveness has weakened. Supported by the recovery of the 
tourism sector and the large money transfers associated with the relocation of Russian citizens 
and  businesses  following  the  start  of  the  war  in  Ukraine,  it  appreciated  by  nearly  40%  in 
cumulative terms in 2021 and 2022 and continued this upward trend in the first four months of 
2023. In particular, the real exchange rate of the local currency against the euro appreciated by 
53% over the course of 2021 and 2022. 

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL 

Chapter 5 - Public procurement   

EU rules ensure that the public procurement of goods, services and works in any Member State 
is  transparent  and open  to  all EU companies on  the basis of  non-discrimination and equal 

63 

 
 
 
 
treatment. 

Georgia has some level of preparation in the area of public procurement. Good progress was 
made with the adoption of the new Law on public procurement in February 2023.  

In the coming year, Georgia should: 

→  further align its legislative framework with the EU public procurement acquis, including 

utilities and concessions; 

→  further align its legislation with the directive on procurement in the fields of defence and 

security; 

→  further consolidate the capacity of the Dispute Resolution Council. 

Institutional set up and legal alignment 

The legislative framework remains partly aligned with the EU acquis. Parliament adopted a 
new public procurement (PP) Law in  February 2023, aimed to  align with the EU  Directive 
2014/24 on public procurement. The new PP Law regulates, among others, public procurement 
procedures  and  tools,  dispute  review,  reporting  and  control.  It  also  includes  provisions  on 
defence  and  security-related  public  procurement.  The  main  provisions  of  the  new  Law  will 
enter into force on 1 January 2025. In February 2023 Parliament also amended sectoral laws 
regulating certain aspects of public procurement. The EU Directive on procurement by entities 
operating in the water, energy, transport and postal services sectors has still not been aligned 
with. 

State  purchases  in  the  range  of  GEL 5 000  to  200 000  are  conducted  through  a  simplified 
electronic  tender  which  is  a  substitute  to  single-source  procurement.  Purchases  above 
GEL 200 000 mandate a call for a regular e-tender.  

Implementation and enforcement capacity 

In 2022, the public procurement market amounted to 10.3% of the country’s GDP, compared 
to 10% in 2021. It represented 38% of the state budget. According to the State Procurement 
Agency  (SPA),  the  central  public  procurement  institution  responsible  for  the  public 
procurement system, electronic and consolidated tenders placed through the state procurement 
system made up 82.4% of the total volume of purchases.  

Regarding monitoring of contract award and implementation, the contracts signed through 
simplified purchase amounted to 17.6% of total purchases. Government procurement is often 
driven by a lowest bid consideration versus a best value for money approach, which can lead 
to  the  cheapest  offer  winning  at  the  expense  of  quality.  The  use  of  negotiated  procurement 
procedures without prior publication decreased to 18% in 2022, as compared to 18.4% in 2021. 
The use of centralised procurement and framework agreements was GEL 543.6 million (7.3%) 
in  financial  year  2022,  and  GEL  526.6  (9%)  in  financial  year  2021.  The  proportion  of  the 
overall value of public procurement awarded to SMEs increased to 22% in 2022 as compared 
to 2021. Tender cancellation was almost the same – 846 (2%) cases in 2022 as compared to 
844 (2%) cases in 2021. 

The SPA’s capacity to manage public procurement process is good. The SPA has been essential 
in the drafting and adoption of the new PP Law and is actively involved in the drafting and 
preparation of new secondary legislation required under the new Law.  It efficiently runs the 
e-procurement system and provides consistent training to contracting authorities and economic 
operators. Further capacity development is required to fully transpose and implement the EU 
acquis.  

64 

 
 
Capacity development 

With a view to strengthen the capacity of public, business and civil sectors’ representatives, 
the SPA elaborated a comprehensive internal roadmap which plans a series of capacity building 
activities  during  2024-2025.  A  series  of  training  sessions,  practical  workshops,  public 
awareness actions, guidelines and users’ guides are needed to ensure proper launching of the 
full-scale  public  procurement  transformation  reform  in  line  with  AA/DCFTA  commitments 
and newly adopted PPL.  

Additional technical assistance is needed for institutional capacity building to properly design 
and establish a fully new public/administrative body, the Central Purchasing Body (CPB).  

The relevant activities related to the conduct of public procurement are defined by the current 
Law  on  State  procurement,  including  the  conditions  for  avoiding  and  the  grounds  for 
identifying conflicts  of interest.  The newly adopted Law of  Georgia on public procurement 
(PPL)  provides  more  detailed  and  extensive  regulations  regarding  the  issues  of  conflict  of 
interest in public procurement in line with EU Directive 2014/24/EU.  

To mitigate corruption risks in public procurement proceedings, SPA permanently monitors 
the  adherence  to  principles  of  publicity,  fairness  and  non-discrimination  during  the  entire 
public  procurement  process.  National  legislation  also  provides  for  administrative  liability 
and/or criminal liability in accordance with the Administrative offences code and the Criminal 
code. Moreover, the SPA works in close cooperation with law enforcement agencies and the 
State  Audit  Office  during  criminal  cases,  investigation  or  administrative  punishment 
proceedings. 

An efficient remedy system 

The  Procurement  Dispute  Resolution  Council  is  ‘institutionally  hosted’  by  the  Competition 
Agency. The council is independent and its members are selected through a public competitive 
procedure and later appointed by the Prime Minister. The Council handled 862 complaints in 
2022.  

The legislation on the right to legal remedy needs to be aligned with the EU acquis. The new 
public  procurement  law  contains  several  provisions  safeguarding  the  independence  of  the 
Council, but it does not cover public procurement processes that are implemented according to 
the rules of international financial institutions. The Council has therefore no jurisdiction over 
complaints lodged by bidders participating in tender procedures launched to award contracts 
financed by international financial institutions. This situation leaves the harmed party without 
any recourse to legal remedy. This is not fully in line with the main principles of the EU legal 
framework. 

Chapter 18 - Statistics  

EU rules require that EU Member States are able to produce statistics based on professional 
independence,  impartiality,  reliability,  transparency  and  confidentiality.  Common  rules  are 
provided for the methodology, production and dissemination of statistical information. 

Georgia has some level of preparation in the area of statistics. Limited progress was made 
in the reporting period, with the adoption of the Law on official statistics. To a large extent, 
national  legal  instruments  are  in  place  for  producing  required  statistical  data  and  further 
developing the system to approximate it with EU standards. As regards administrative capacity, 
adequacy of resources is of concern. Geostat, the National Statistics Office of Georgia has a 
relatively small number of employees and salary levels are not aligned with those of officials 
in  other areas of public service. Financial and  IT resources are also  relatively  limited. Data 

65 

 
 
transmissions to Eurostat are limited. 

In the coming year, Georgia should: 

→  strengthen  coordination  and  cooperation  between  Geostat  and  the  Administration  of 

Government, as well as with line ministries and agencies; 

→  improve the human and technical capacity of the statistical office; 

→  increase production and transmission of timely and high-quality data to Eurostat. 

On 31 May 2023, the Parliament adopted the new Law on official statistics, which entered into 
force  on  30  August  2023.  The  primary  objective  of  the  law  is  to  bring  Georgia's  official 
statistical legislation in line with international standards and European legislation, as well as to 
fulfil the obligations outlined in the Association Agreement between Georgia and the European 
Union.  

The new Law addresses issues such as the concept of ‘professional independence’; the status 
and appointment of the Executive Director of Geostat; and access to relevant administrative 
data  for  statistical  purposes  in  line  with  the  internationally-recognised  statistical  principles. 
Two institutions are recognised as official statistics producers: Geostat and the National Bank 
of Georgia.  

To  strengthen  the  availability  and  access  to  data  sources,  improved  coordination  and 
cooperation between multiple government institutions is still needed in the national statistical 
system. This applies to holders of administrative data and producers of statistics.  

As  regards  registers  and  classifications,  Georgia  has  been  implementing  NACE  Rev.  2 
(Statistical  classification  of  economic  activities  in  the  European  Community),  CPA  2008 
(Classification  of  products  by  activity),  ISCO-08  (International  standard  classification  of 
occupations), the Standard international trade classification (SITC, Rev. 4) and ISCED 2011 
(International standard classification of education) with different degrees of compliance with 
the  EU  acquis.  The  statistical  business  register  held  by  Geostat  is  largely  in  line  with 
international recommendations and alignment on classification is partial. A population register 
is currently not established in Georgia.  

On macroeconomic statistics, Georgia introduced the UN standard 2008 System of National 
Accounts  (2008  SNA)  methodology  in  2019  and  compiles  main  annual  and  quarterly 
aggregates;  sector  accounts;  and  supply  use  and  input  output  tables.  Georgia  needs  to  start 
submitting  national  accounts  data  to  Eurostat.  Georgia  needs  to  start  submitting  excessive 
deficit procedure tables and data on government finance statistics to Eurostat. In addition, the 
institutional arrangements need to be carefully reviewed to assure statistical independence to 
delineate the general government sector and the recording of its operations. Georgia should 
start  developing  data  compliant  with  the  ESA  2010.  The  country  needs  to  start  submitting 
regional  GDP  tables,  consistent  at  statistical  regions  level  –  equivalent  to  level  two  of  the 
nomenclature of territorial  units for statistics, also  referred to  as NUTS 2. Annual  financial 
sector accounts are not transmitted. 

In 2022, Geostat published the harmonised index of consumer prices (HICP), but it has not 
been validated by Eurostat. Data on housing price statistics are not transmitted to Eurostat.  

Balance  of  Payments  (BOP)  statistics  are  compiled  and  disseminated  by  National  Bank  of 
Georgia  (NBG)  according  to  methodology  of  the  BPM6,  connected  with  BOP  or  its 
components.  

Business statistics are not transmitted to Eurostat.  

66 

 
 
On social statistics, the next population and housing census is scheduled for 2024, between 14 
November  and  19  December  (the  last  population  census  was  conducted  in  2014).  The 
programme of the 2024 general population census was adopted in June 2022. The population 
register  is  yet  to  be  created.  Demographic  statistical  data  were  transmitted  to  Eurostat,  but 
improvements  are needed. Statistics on international  migration are incomplete and work on 
statistics concerning asylum and managed migration is needed.  

The last agriculture census was conducted in 2014. The next agriculture census will be carried 
out  in  2024,  together  with  the  general  population  census.  Geostat  relies  on  an  integrated 
approach  of  agriculture  census  and  sample  surveys  to  produce  the  official  agricultural 
statistics.  

Environment statistics data is not transmitted to Eurostat. There are no waste statistics in the 
country.  Geostat  disseminates  several  environmental  indicators  and  accounts  based  on 
administrative sources or data obtained from other statistical surveys. On transport statistics, 
in 2022, Geostat started producing additional indicators of rail transport statistics, air transport 
statistics and road freight transport statistics, but data is not transmitted to Eurostat. 

On energy statistics, Georgia is aligned with the EU statistical acquis set out in the Statistical 
Requirements Compendium, in line with the provisions adopted by the Energy Community in 
agreement  with  the  European  Commission.  It  includes  for  instance  statistics  on  passenger 
kilometres,  energy  consumption  by  transport  and  energy  efficiency  of  buildings.  The 
production of energy efficiency indicators still needs to be carried out.  

Chapter 32 - Financial control 

The  EU  promotes  the  reform  of  national  governance  systems  to  improve  managerial 
accountability, sound financial management of income and expenditure, and external audit of 
public funds. The financial control rules further protect the EU’s financial interests  against 
fraud in the management of EU funds and the Euro against counterfeiting. 

Georgia has some level of preparation in the area of financial control. No progress was made 
in the reporting period. The Law on public internal financial control (PIFC) is an adequate basis 
for enabling the development of PIFC in line with international standards and to meet EU PIFC 
requirements. Managerial accountability, financial management and control and internal audit 
are not implemented effectively. This is due to insufficient capacity, low understanding of their 
benefit  across  the  public  service  and  ineffective  accountability  arrangements  between 
ministries and their subordinate bodies. 

In the coming year, Georgia should: 

→  Implement financial management and control arrangements and strengthen the managerial 

accountability; 

→  consolidate the capacity of the Central Harmonisation Unit within the Ministry of Finance 

in terms of human and financial resources; 

→  establish an official anti-fraud coordination service. 

Public internal financial control 

The  legal  framework  for  public  internal  financial  control  (PIFC)  is  in  place.  It  adequately 
covers  financial  management  and  control,  internal  audit  and  the  role  of  the  Central 
Harmonisation Unit.  

The 2021-2024 public internal financial control system strategy is being carried out. In terms 
of financial management and control, the focus is on improving the methodological base and 
67 

 
 
promoting awareness and accountability in the target institutions (mostly central ministries), 
followed  by  implementation.  In  terms  of  internal  audit,  key  elements  are:  developing 
methodological and auxiliary manuals; evaluating the quality of the activities of internal audit 
subjects; enhancing the qualifications of internal auditors both at the central and local level; 
and developing the concept of certification of internal auditors. 

Internal audit units are established in all line ministries, local government units and in legal 
entities of public law. Capacity of internal audit units to conduct different types of audit in line 
with international standards and the quality of produced reports vary across ministries. 

Financial  management  and  control  systems  are  still  at  an  early  stage  of  development.  The 
government adopted a decree to regulate the establishment of managerial and control systems 
in the public sector. The progress in establishing the financial management control system is 
limited to few line ministries.  

A central harmonisation unit has been established in the Ministry of Finance. The unit does 
not  have sufficient  leverage and staff to  effectively  support implementing PIFC reform  and 
depends heavily on donor support. The State Audit Office also cooperates (providing training 
courses)  with  the  Central  Harmonization  Unit  to  strengthen  the  efficiency  of  the  internal 
financial control system of public agencies. As for cooperation with the Prosecutor's Office, 
when signs of crime are detected during the audit process, such cases are immediately sent to 
the  Prosecutor's  Office.  The  annual  activity  report  of  the  Prosecutor's  Office  presents 
information on the actions taken on the cases. The report is public. 

External Audit 

Georgia’s State Audit Office operates in line with international best practices. The constitution 
and  organic  Law  on  state  audit  ensure  the  Office’s  financial  and  operational  independence. 
Remaining weaknesses relate to the legal protection and tenure of the auditor general and to 
the unclear mandate for auditing state owned enterprises and tax revenues.  

The State Audit Office carries out all types of audits and provides audit findings to the public. 
Audit  guidelines  are  in  line  with  international  or  ISSAI  standards.  The  State  Audit  Office 
covers  90%  of  central  government  expenditures  and  audits  local  governments  at  least  once 
every  three  years.  Improvements  are  needed  in  terms  of  completion  and  publishing  of 
conducted audit reports and in terms of frequency of municipal finances audits.  

A permanent working group that is functioning under the Budget and Finance Committee of 
the Parliament scrutinises audit reports within 6 months after receiving documents from State 
Audit Office. The audit hearings are open to participation from civil society organisations and 
other interested stakeholders.  

The implementation rate of State Audit Office’s recommendations by the executive remains 
low (47% fully implemented in 2022, compared to 45% in 2021).  

Protection of the EU’s financial interests 

Georgia started the process of legal approximation of the EU acquis requirements of Directive 
on the fight  against fraud to  the EU’s financial interests by means of criminal  law, and the 
continuation of this alignment is to be encouraged. Cooperation in investigations between the 
European Anti-Fraud Office (OLAF) and relevant national authorities takes place on a case-
by-case basis. Georgia nominated the Prosecutor’s Office as main focal point for cooperation 
with  OLAF.  Efforts  should  continue  in  developing  a  track  record  of  cooperation  on 
investigations No anti-fraud coordination service (AFCOS) has been officially designated 
and progress on this should be made. 

68 

 
 
3.  GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

Georgia  maintains  dialogue  and  actively  participates  in  the  framework  of  the  Eastern 
Partnership,  and  in  various  regional  cooperation  platforms  such  as  the  Central  European 
Initiative (CEI), the Black Sea Economic Cooperation Organisation (BSEC), the Organisation 
for Democracy and Economic Development  (GUAM), the Southeast European Cooperation 
Process (SEECP) and the Regional Cooperation Council (RCC).  

Georgia also helps implement the Central European Free Trade Agreement (CEFTA).  

Georgia and Türkiye enjoy a strategic partnership. Since 2016, Georgia and Türkiye have a 
High-Level Strategic Cooperation Council at Prime Minister level. Türkiye is Georgia’s second 
largest trading partner among those with free trade regimes. There are major energy projects 
such  as  the  Baku-Tbilisi-Ceyhan  oil  pipeline  and  the  Baku-Tbilisi-Erzurum  gas  pipeline. 
Georgia, Türkiye and Azerbaijan have a political trilateral  format since 2012 at Minister of 
Foreign Affairs level.   

Georgia and Ukraine, an ‘Association Trio’ member, have a strategic partnership since 2017, 
but  relations  are  currently  strained.  Georgia  is  a  participant  of  the  Crimea  International 
Platform. While Georgia continues to support Ukraine’s territorial integrity and sovereignty, 
including through co-sponsorship of Ukrainian UN resolutions, Ukraine considers Georgia’s 
position on the Russian aggression as ambivalent, criticising, inter alia,  the  non-alignment of 
Georgia with EU sanctions against Russia and absence of military-technical cooperation. The 
Government  of  Georgia  continues  to  support  more  than  24  000  war-affected  Ukrainians 
currently staying in Georgia. The resumption of flights between Russia and Georgia and the 
health  conditions  of  former  Georgian  President  Saakashvili,  a  Ukrainian  citizen,  had  led  to 
additional diplomatic tensions.   

Georgia and Azerbaijan enjoy solid relations built on an understanding of regional geopolitical 
challenges  and  mutual  interests,  particularly  in  energy  and  trade.  Georgia  and  Azerbaijan 
broadly cooperate in regional energy development, transportation and economic partnership 
projects. 

In  December  2022,  Georgia  signed  a  quadrilateral  Memorandum  of  Understanding  with 
Azerbaijan,  Romania  and  Hungary  on  a  strategic  partnership  in  the  field  of  green  energy 
development and transmission. The Memorandum  includes the promotion of a future Black 
Sea electricity cable. In June 2023, the Parliament of Georgia approved a Georgia-Azerbaijan 
bilateral agreement on cooperation on defence issues.  

Georgia  and  Moldova,  an  “Association  Trio’  member,    traditionally  enjoy  good  bilateral 
relations. The recent period has been marked by intensified dialogue manifested in the visits of 
the President and Foreign Minister of Georgia to Moldova, and the visit of the Deputy Prime-
Minister of Moldova to Georgia. During these visits, the two countries discussed strengthening 
their political  dialogue and further  expanding  sectoral  cooperation. A special emphasis  was 
placed on furthering the common goal of EU membership.  

In 2022, Georgia strengthened its engagement and further broadened its range of cooperation 
with  Albania,  Bosnia  and  Herzegovina,  Montenegro,  North  Macedonia  and  Serbia,  
particularly given their experience and expertise in the EU enlargement process. With these 
countries, Georgia enjoys an active exchange of visits at various levels and interactions within 
the international forums, which facilitates the further advancement of bilateral relations based 
on  mutual  interest.  In  addition,  Georgia  has  a  memorandum  of  understanding  with  Serbia 
(between  the  Ministries  of  Foreign  Affairs)  on  cooperation  in  the  field  of  European 
integration,  covering  a  broad  range  of  topics  and  relevant  state  institutions.  It  is  currently 

69 

 
 
considering  signing  similar  memoranda  with  Albania,  Bosnia  and  Herzegovina, 
Montenegro, and North Macedonia. Georgia does not recognise Kosovo* as an independent 
state. 

Relations  with  neighbouring  EU  Member  States  Romania  and  Bulgaria  are  good,  with  a 
strong focus on connectivity in the Black Sea. 

4.  ABILITY TO ASSUME OBLIGATIONS OF MEMBERSHIP   

CLUSTER 2: INTERNAL MARKET  

This cluster covers: free movement of goods (Chapter 1); freedom of movement for workers 
(Chapter 2); right of establishment and freedom to provide services (Chapter 3); free movement 
of  capital  (Chapter  4);  company  law  (Chapter  6);  intellectual  property  law  (Chapter  7); 
competition  policy  (Chapter  8);  financial  services  (Chapter  9);  and  consumer  and  health 
protection (Chapter 28). This cluster is key for Georgia’s preparations for the requirements of 
the EU’s internal market and is of high relevance for the development of the common regional 
market.  

Georgia is moderately prepared in the areas of right of establishment and freedom to provide 
services, with no progress registered in the reporting period. The country has some level of 
preparation in terms of the free movement of goods, on which there was limited progress, and 
in terms of company law, notably with the strengthening of auditing. Georgia is at an early 
stage of preparation when it comes to the free of movement of workers, with limited progress 
on circular migration. Limited progress can also be reported on intellectual property with the 
adoption of amendments to the Law on patent. There was limited progress on free movement 
of  capital,  where  Georgia  needs  to  follow  up  on  outstanding  recommendations  from  the 
Moneyval report.  

Some level of preparation can be noted on consumer and health protection where the country 
made  limited  progress.  Significant  efforts  are  still  needed  on  ensuring  quality  healthcare 
coverage  for  all,  as  well  as  on  ensuring  proper  staffing  of  the  national  competition  agency 
responsible  for  consumer  enforcement.  No  progress  can  be  reported  on  competition  policy, 
where the State Aid Commission still lacks operational independence. Georgia has some level 
of preparation in the area of financial services and made limited progress during the reporting 
period. 

Chapter 1 - Free movement of goods   

The free movement of goods ensures that products can be traded freely across the EU based 
on common rules and procedures. Where products are governed by national rules, the principle 
of the free movement of goods prevents these rules from creating unjustified barriers to trade. 

Georgia  has  some  level  of  preparation  in  the  area  of  free  movement  of  goods.  Limited 
progress was made, notably to align with a few elements of the EU  acquis in the new and 
global approach sectors. There is almost no alignment under the old approach, including almost 
none regarding the EU acquis on motor vehicles and on chemicals and almost all procedural 
measures. 

In the coming year, Georgia should: 

* This designation is without prejudice to position on status and is in line with UNSCR 1244(1999) and 
the ICJ Opinion on the Kosovo declaration of independence. 

70 

 
 
 
 
 
→  implement market surveillance in compliance with the EU acquis and phase out the ‘pre-

notification’ system of market surveillance before placement on the market; 

→  adopt a strategy and action plan with a clear timeline to complete alignment with the EU 
acquis  on  the  standards,  conformity  assessment,  accreditation,  metrology  and  market 
surveillance; 

→  put into force and implement legislation to align with the EU acquis on energy labelling. 

General principles 

Some of the elements of the general principles of the legislative and institutional framework 
for the free movement of goods are in place. Georgia is partly aligned with the EU acquis on 
standards, conformity assessment, accreditation, metrology and market surveillance due to its 
obligations under the AA and DCFTA. 

Non-harmonised area 

Georgia will need to review all its legislation, processes, and procedures that could impact the 
free  movement  of  goods  in  the  non-harmonised  area  and  decide  how  it  will  address  any 
elements  that  are  not  compliant  with  the  obligations  of  Articles  34-36  Treaty  on  the 
Functioning of the European Union. These non-compliant elements will need to be repealed, 
or amended, and/or mutual recognition provisions will need to be introduced. The main entry 
point on technical barriers to trade is Georgia’s national agency for standards and metrology 
(GEOSTM).  

Harmonised area: quality infrastructure 

The legal  basis  and administrative structure for technical  regulations, standards, conformity 
assessment,  accreditation,  metrology  and  market  surveillance  are  in  place.  These  are  partly 
aligned with the EU acquis. 

Standardisation is regulated by a national law that is partly aligned with the EU acquis. The 
Law has provisions on the functioning and organisation of GEOSTM as the national body for 
standardisation.  Since  January  2023,  GEOSTM  is  an  affiliate  member  of  the  European 
Committee  for  Standardisation  and 
the  European  Committee  for  Electrotechnical 
Standardisation.  Since  November  2022,  GEOSTM  has  been  an  associate  member  of  the 
European Association of National Metrology Institutes (EURAMET). As of 2022, Georgia has 
adopted 11 936 European standards. Georgia still has many conflicting Soviet-era standards in 
place. No Georgian entities are members of the European Technical Standards Institute (ETSI). 
Georgia  launched  a  new  export  assistance  programme  in  2022,  which  includes  three 
components:  product  licensing/certification;  branding/product  packaging;  and  stimulating 
international sales/entering the international trade network. Since 1 January 2023, GEOSTM 
offers standards to small and micro enterprises for special prices.  

The  Law  on  product  safety  and  free  movement  code,  which  is  partly  aligned  with  the  EU 
acquis,  regulates  Georgia’s  accreditation  framework.  The  Unified  National  Body  on 
Accreditation, an associate member of the European cooperation for Accreditation, ensures the 
accreditation  of  conformity  assessment.  In  September  2022,  the  digitalisation  of  the  state 
programme  for  accreditation services  was  completed. All  accreditation services  – including 
application for accreditation, document review, exchange with accredited organisations, and 
protection of electronic accreditation documentation – are delivered electronically to certified 
organisations. 

The  legal  base  for  conformity  assessment,  metrology  and  market  surveillance  is  partly 
aligned with the EU acquis. Georgia currently relies on a ‘pre-notification’ system of market 
71 

 
 
surveillance before placement on the market. This is not aligned with the EU acquis and is 
currently only applied to what are identified as high-risk products. The Market Surveillance 
Agency  is  an  independent  body.  In  2022,  the  Market  Surveillance  Agency  did  461  market 
surveillance  inspections,  focusing  on  in  three  types  of  consumer  products  (toys,  devices 
working  on  gas  fuel  and  personal  protective  equipment)  and  three  types  of  industrial  and 
construction  products  (construction  goods,  machinery  and  pressure  equipment).   In  the 
reporting period, the agency took seventeen types of toys off the market. 

Harmonised area: sectoral legislation 

As  regards  the  ‘new  and  global  approach’,  the  level  of  alignment  remains  low.  Georgia 
adopted legislation that is designed to align with the EU acquis on cableways, gas appliances, 
protective  systems  intended  for  use  in  potentially  explosive  atmospheres,  lifts,  measuring 
instruments,  civil  explosives,  recreational  craft,  eco-design,  and  medical  devices.  .  The 
legislation  on  construction  products  is  now  extended  to  22  different  types  of  construction 
products. No progress is reported regarding alignment with the EU acquis on electromagnetic 
compatibility, aerosol dispensers, simple pressure vessels, outdoor equipment noise emissions, 
pyrotechnic articles, measuring equipment, bottles as measuring containers, or non-automatic 
weighing devices. In early 2023 Georgia adopted implementing legislation on radio equipment 
and on electrical equipment intended for use within certain voltage limits designed to ensure 
alignment with the relevant EU acquis. 

On  ‘old  approach product  legislation’,  no  progress  is  reported  on  alignment  with  the  EU 
acquis on motor vehicles, two or three wheeled vehicles, tractors, non-road mobile machinery, 
registration,  evaluation,  authorisation  and  restriction  of  chemicals,  chemicals  classification, 
packaging and labelling, aerosol dispensers; good laboratory practice, fertilizers, detergents, 
pre-packaging, or medicinal products pricing. 

On procedural measures, Georgia has not made any progress on aligning to the EU acquis on 
firearms, crystal glass, defence products, defence procurement, footwear, textile labelling and 
mixtures,  the  return  of  cultural  objects  unlawfully  removed  from  the  territory  of  an  EU 
country, or on drug precursors (although some procedures were reported on this). 

Georgian market surveillance does not foresee measures related to anti-corruption.  

Chapter 2 - Freedom of movement for workers 

Citizens of one Member State have the right to  work in another Member  State and must be 
given the same working and social conditions as other workers. 

Georgia is at an early stage of preparation in the area of free movement for workers. Limited 
progress was made, through closer cooperation with EU Member States to coordinate circular 
migration and the amendments to the Law on labour migration. The country needs to align its 
legislation with the relevant EU acquis, including its interpretation in the case law of the Court 
of Justice of the EU. 

In the coming year, Georgia should: 

→  work on concluding additional agreements on social security coordination, notably with 

EU Member States; 

→  take  into  account  the  EU  acquis  on  the  coordination  of  social  security  systems  when 

conducting social security system reforms; 

→  Start work to prepare for joining the European Network of Employment Services (EURES) 

upon accession. 

72 

 
 
Regarding access to the labour market, the legal framework does not restrict the employment 
of foreigners and does not require a work permit for citizens of the 99 countries (including all 
EU Member States) that benefit from visa-free travel, allowing them to stay in the country for 
a determined period of time without a residence permit. Citizens of countries that require a visa 
to enter Georgia also need a work residence permit. In 2021 3 897 and in 2022 4 712 work 
residence permits were issued. No work permit is required for EU citizens and they can stay 
up to one year without a residence permit with the same labour rights as Georgian citizens. No 
special regime is in place for family members of EU workers. 

Employment in public administration is reserved for Georgian citizens for professional civil 
servant  positions,  but  no  nationality  conditions  apply  to  administrative  and  labour  contract 
employees. 

Parliament adopted amendments to the law "on labour migration" on 17 May 2023 some of 
which entered into force upon publication in the Official Journal, while others will do so on 1 
September  2023.  The  amendments  aim  to  refine  existing  legal  norms  and  enforcement 
mechanisms in terms of labour emigration and immigration, although some have the potential 
to make legal employment of foreigners more difficult. Labour laws prohibit discrimination on 
several grounds, including nationality. 

There  is  no  preparatory  work  in  place  for  Georgia  to  access  the  European  Employment 
Services network. Georgia has three websites for job vacancies (for national / international / 
public  positions).  The  website  for  national  positions  is  managed  by  the  State  Employment 
Support  Agency  (SESA)  and  is  a  countrywide  database  for  publishing  vacancies,  job 
applications  and  CVs.  In  June  2023,  initial  contacts  were  made  with  the  European  Labour 
Authority (ELA). 

As regards the coordination of social security systems, Georgia has signed three international 
bilateral agreements on social security (Germany, Bulgaria and France), and has therefore some 
experience  in  applying  the  principles  of  social  security  coordination.  Death  grants, 
unemployment benefits  and pre-retirement benefits are not  covered by legislation, although 
sickness benefits in kind and family benefits are provided. EU rules related to supplementary 
pension rights of mobile workers are not incorporated into legislation. 

Georgia has not implemented a national health insurance card, so the implementation of the 
European Health Insurance Card (EHIC) might therefore be challenging. 

Chapter 3 - Right of establishment and freedom to provide services   

EU natural and legal persons have the right to establish themselves in any Member State and 
to  provide  cross-border  services.  For  certain  regulated  professions,  there  are  rules  on  the 
mutual recognition of qualifications. EU rules on postal services focus on improving the quality 
of  universal  service,  gradual  market  opening  to  competition,  and  the  establishment  of  an 
independent regulator. 

Georgia is moderately prepared regarding the right of establishment and freedom to provide 
services. There was no progress made. Its legal framework provides equal treatment of the 
rights of foreign natural and legal persons to establish companies and branches of foreign legal 
persons in Georgia. Efforts are needed to align with the EU acquis, notably on postal services 
and mutual recognition of foreign qualifications for regulated professionals.  

In the coming year, Georgia should: 

→  align with the EU Services acquis (Directive 2006/123/EC);  

→  align with the EU postal acquis and update the AA/DCFTA annex on rules applicable to 
73 

 
 
postal and courier services; 

→  align  with  the  Directive  2005/36/EC  on  the  recognition  of  professional  qualifications, 
including Directive 2005/36/EC on recognition of professional qualifications and Directive 
2018/958 on a proportionality test before adoption of new regulation of professions. 

Overall, regarding the freedom of establishment and the freedom to provide services, Georgia’s 
legal framework does not contain differences or discriminatory provisions in respect of the 
rights of foreign natural and legal persons to establish companies and branches of foreign legal 
persons in Georgia. There was no progress in aligning with the Services Directive, with which 
the Georgian legal framework is partially aligned.  

Georgia has a well-structured and advanced institutional and regulatory framework for SME 
policy. New businesses can be established within one day. 

As  regards  postal  services,  Georgia  still  needs  to  align  its  legislation  with  the  three  Postal 
Services Directives and the Regulation on cross-border parcel delivery services. Preparations 
are ongoing in the framework of the EU-Georgia AA/DCFTA process to  update the Annex 
XV-C of the Association Agreement on rules applicable to postal and courier services with the 
EU Regulation on cross-border parcel delivery services. Georgia should continue preparing the 
amendments to its postal law to align with the commitments in the updated Annex by the end 
of 2024.  

Regarding  mutual  recognition  of  foreign  qualifications  for  regulated  professions,  the 
legislation in Georgia is not aligned with the applicable EU acquis. The professions of midwife, 
nurse  responsible  for  general  care,  veterinary  surgeon  and  architect  are  not  regulated  in 
Georgia.   

Chapter 4 - Free movement of capital  

In the EU, capital and investments must be able to move without restrictions, with common 
rules for cross-border payments. Banks and other economic operators apply certain rules to 
support the fight against money laundering and terrorist financing. 

Georgia  is  moderately  prepared  in  terms  of  free  movement  of  capital.  There  was  limited 
progress 
the  anti-money 
including 
laundering/countering  financing  of  terrorism  strategy  and  action  plan.  Georgia  needs  to 
continue alignment with the EU acquis in anti-money laundering and payment systems.  

the  adoption  of 

reporting  period, 

the 

in 

In the coming year, Georgia should: 

→  further align its legal framework with the EU Payment Services Directive 2 and in the area 

of money laundering and combatting terrorist financing; 

→  follow up on outstanding recommendations from Moneyval, in particular on transparency 

and beneficial ownership of legal persons and legal arrangements; 

→  implement the national money laundering and terrorist financing risk assessment. 

On capital movements and payments, existing legislation does not impose capital controls or 
any other restrictions on capital movements. Certain capital transactions are monitored for anti-
money  laundering  purposes  only.  There  are  no  restrictions  in  place  for  foreign  exchange 
operations. 

Except for agricultural land, which can only be owned in exceptional situations, foreigners may 
acquire and own real estate in Georgia.  

As regards payment systems, Georgia is partially aligned with the EU acquis, administrative 
74 

 
 
capacity and enforcement. The government has enacted amendments to the Law on payment 
systems  and  payment  services  in  September  2022  to  align  with  the  EU  Payment  Services 
Directive  2.  This  includes  removing  restrictions  on  using  electronic  money  for  merchant 
accounts; ensuring non-discriminatory access to the payment systems; and enabling payment 
initiation services  and account  information  access services. According to  central  bank data, 
there are 32 registered payment service providers, including e-money providers. 

The  alignment  of  the  legislative  and  institutional  framework  for  anti-money  laundering  is 
incomplete.  Fully  effective  coordination  and  cooperation  between  supervisory,  law 
enforcement and prosecutorial authorities requires more efforts. According to the Law on anti-
money laundering, the national risk assessment of money laundering and terrorist financing, 
first adopted in 2019, should be updated at least once every 3 years. The Government adopted 
the Report on Money Laundering and Terrorism Financing Assessment Risks in Georgia on 3 
October  2023.  The  anti-money  laundering/countering  financing  of  terrorism  strategy  and 
action plan were adopted on 4 April 2023. Georgia’s anti-money laundering legislation partly 
addresses  recommendations  of  the  Financial  Action  Task  Force  and  relevant  international 
legislation. Outstanding recommendations from Moneyval remain unaddressed, as Georgia had 
only  progressed  in  the  field  of  development  of  interagency  cooperation  capacities  of  the 
Financial Monitoring Service.  

The Financial  Monitoring Service of Georgia (the national  FIU) continued to  strengthen its 
analytical capacity for data processing and financial analysis. No beneficial ownership register 
has been created yet. According to the activity report of the Prosecutor General, in the first 9 
months of 2022, 81 million GEL (around 29 million EUR) worth of assets were seized/frozen 
(out of which 49% in immovable properties, 47% in money, and 3% in cars, down from 132 
million GEL (around 47 million EUR) in 2021. 

Chapter 6 - Company law  

The  EU  has  common  rules  on  the  formation,  registration  and  disclosure requirements  of  a 
company,  with  complementary  rules  for  accounting  and  financial  reporting,  and  statutory 
audit. 

Georgia  has  some  level  of  preparation  in  the  area  of  company  law.  There  was  limited 
progress in the reporting period related to increasing the reliability and quality of auditing. 
Georgia needs to align with the EU acquis on cross border operations and company reporting.  

In the coming year, Georgia should: 

→  amend existing national legislation to align with the EU acquis on takeovers, shareholder 
rights,  including  the  encouragement  of  long-term  shareholder  engagement,  and  on 
disclosure of information on foreign branches; 

→  align  national  legislation  with  the  acquis  on  cross-border  conversions,  mergers  and 

divisions and on the use of digital tools and processes in company law 

→  align with the EU acquis on financial reporting standards relating to small entities; 

→  provide  the  appropriate  level  of  financial  and  human  resources  for  effective  oversight, 

investigations and sanctions tasks. 

Georgia is partially aligned with EU acquis in terms of company law. The National Agency 
of  Public  Registry  is  the  authority  responsible  for  registering  companies  and  disclosing 
company information.  There are no rules on disclosing information  on foreign  branches,  as 
required by the EU acquis. Financial information in the business register needs to be disclosed. 
The  National  Agency  of  Public  Registry  (NAPR)  was  established  to  create  a  more  unified, 
75 

 
 
modern,  transparent  and  efficient  public  registry.  The  administrative  capacity  of  the  NAPR 
requires further strengthening. The National Bank of Georgia’s corporate governance code for 
public issuers approved on December of 2021 reflects EU and international standards. Georgia 
is carrying out a gap assessment on takeover bids to further align with the EU acquis in this 
area. Georgia also has to align shareholder rights, including the encouragement of long-term 
shareholder  engagement  (Shareholder  Rights  Directives)  and  gender  equality  on  boards  of 
directors (2022 Directive). Further alignment is needed with the 2019 Directive on digital tools 
and  processes  and  the  2019  Directive  on  cross-border  operations  (mergers,  divisions, 
conversions).  

On company reporting, there is partial alignment of the main legal requirements with the EU 
acquis,  including  the  transparency  requirements  for  listed  companies.  Further  alignment  is 
needed  on  the  financial  reporting  principles  relating  to  small  entities;  the  criteria  to  define 
company  size  categories;  and  country  by  country  reporting  by  very  large  multinational 
companies.  Georgia  will  also  need  to  align  with  the  most  recent  EU  acquis  on  corporate 
sustainability reporting.  

On statutory audit, national legislation is partially aligned with the main legal requirements 
of  the  EU  acquis  in  this  area.    Georgia’s  Service  for  Accounting,  Reporting  and  Auditing 
Supervision (SARAS) is the competent authority for audit oversight, including monitoring the 
quality control system of an auditor/audit firm. In January 2023, a rule – approved by SARAS 
–  for  conducting  investigations  of  auditors/audit  firms  came  into  effect,  and  was  aimed  at 
increasing  the  reliability  and  quality  of  the  statutory  audit  process.  In  December  2022, 
amendments to the Law on accounting, reporting and auditing supervision and to the Law on 
facilitating  the  prevention  of  money  laundering  and  terrorism  financing  were  adopted.  The 
scope of obliged entities under SARAS’ supervision was expanded as a result, Georgia should 
nevertheless pay attention to improving the administrative and financial capacity of SARAS 
for a more effective audit oversight system. 

Chapter 7 - Intellectual property law  

The  EU  has  harmonised  rules  for  the legal  protection  of  intellectual  property  rights  (IPR), 
copyright and related rights. Rules for the legal protection of IPR cover, for instance, patents 
and trademarks, designs, biotechnological inventions and pharmaceuticals. Rules for the legal 
protection  of  copyright  and  related  rights  cover,  for  instance,  books,  films,  software  and 
broadcasting. 

Georgia  has  some  level  of  preparation  in  the  area  of  intellectual  property  law.  Limited 
progress was made with the adoption of the Law on patent.  

Legislation on copyright and industrial property rights is partially aligned with the EU acquis, 
but a substantial amount of work remains to be done. Georgia should continue to strengthen 
the capacity of law enforcement authorities in intellectual property matters.  

In the coming year, Georgia should in particular: 

→  align with the most recent EU acquis in the area of copyright and related rights, including 

on the digital single market; 

→  align with the Directive on trade marks, the Directive on the legal protection of designs and 

the Directive on trade secrets; 

→  continue strengthening collaboration with European Union Intellectual Property Office to 

further advance and consolidate the objectives achieved so far.  

The Law on copyright and related rights regulates the area of copyright and related rights in 
76 

 
 
Georgia. This law is partially aligned with the copyright  acquis. It does not cover the more 
recent EU acquis, most notably the Directive on  copyright in the digital single market. The 
National  Intellectual  Property  Centre  (Sakpatenti)  is  responsible  for  intellectual  property 
policy. It oversees both the development of the intellectual property system in the country and 
the grant of industrial property rights. 

On industrial property rights, Georgia is partially aligned with the Regulation on compulsory 
licensing  of  patents  relating  to  the  manufacture  of  pharmaceutical  products  for  exports  to 
countries  with  public  health  problems.  It  is  also  partially  aligned  with  the  acquis  on 
supplementary protection certificates for medicinal products. The amendments to the Law on 
patents were adopted in May 2023 to ensure compliance with the European Patent Convention. 
Further work is needed to align with the Directive on trademarks and the Directive on the legal 
protection of designs. No progress is registered to align with the Directive on trade secrets. 

In the area of enforcement, stronger border, criminal, civil and administrative enforcement is 
needed.  The  Ministry  of  Finance  and  the  Prosecution  Service  are  the  main  institutions 
competent for enforcing industrial property rights, with both the Ministry of Economic and the 
Communication Commission having a limited role. Georgia drafted the administrative offences 
code, the criminal code, the civil procedure code, and the Law on border measures related to 
intellectual property. In 2022, around EUR 1.2 million worth of counterfeits goods were seized 
by both the Investigation Service of the Ministry of Finance and the Revenue Service.  

Georgia  is  a  member  of  the  World  Trade  Organization.  It  subscribes  to  the  minimum 
intellectual property rights protection standards set in trade-related aspects of the intellectual 
property  rights  agreement.  Georgia  is  not  a  member  of  the  European  Patent  Convention.  A 
validation agreement between Georgia and the European Patent Organisation was signed on 31 
October 2019. The agreement was ratified by the Parliament in May 2023. 

EU-Georgian Intellectual Property Project (EUGIPP), run by the EUIPO to support Sakpatenti 
advanced the trademark, design and copyright framework and helped to harmonise it with EU 
legislation  and  practices.  However,  a  substantial  amount  of  work  remains  to  be  done  thus 
should be continued. 

Chapter 8 - Competition policy  

EU  rules  protect  free  competition.  They  include  antitrust  rules  on  restrictive  agreements 
between companies and abuse of a dominant position, and also include rules on concentrations 
between companies which would significantly impede effective competition. EU rules also set 
out a system of State aid control. Governments are only allowed to grant State aid if restrictive 
conditions are met, with a view to preventing distortion of competition. 

Georgia is at an early stage of preparation in the area of competition policy. There was no 
progress  in  the  reporting  period.  The  country  should  continue  to  align  its  legislative 
framework, in particular on abuse of dominant position and cartels, as well as State aid. The 
Georgian  National  Competition  Agency  needs  to  build  a  solid  track  record  of  enforced 
decisions. Georgia should significantly strengthen the institution’s administrative capacity and 
raise awareness about State aid rules among aid grantors. 

In the coming year, Georgia should in particular: 

→  align the legal framework on antitrust, mergers and State aid with the EU acquis; 

→  grant  enforcement  powers  to  the  State  aid  authority,  in  particular  to  recover 
unlawful/incompatible  State  aid  and  ensure  its  decisions  cannot  be  overturned  by  the 
government; 

77 

 
 
→  strengthen the institutional administrative capacity. 

Antitrust and mergers 

EU  provisions  on  restrictive  agreements  and  on  abuse  of  dominant  positions  are  to  a  large 
extent mirrored in the 2014 Law on competition. The Law also provides ex ante control of the 
effects on competition of mergers above certain turnover thresholds, in line with the principles 
of the EU Regulation on mergers. 

On  the  institutional  framework,  the  Georgian  National  Competition  Agency  (GNCA)  is 
responsible for enforcing competition rules. The agency is an operationally independent body.  

On enforcement capacity, the GNCA currently has 60 staff. Its administrative capacity needs 
to be further strengthened, in particular through relevant training programmes.  

On  implementation,  From  15  June  2022  to  15  June  2023  the  GNCA  completed  5 
investigations and approved 7 concentrations (total amount of decisions -12), which took place 
in hospital services, fuel and construction markets. As of 15 June 2023, GNCA had 6 ongoing 
investigations.  

The GNCA actively participated in three investigations during the reporting period conducted 
by  sector  regulators  and  is  reviewing  the  admissibility  of  seven  complaints  made  by 
undertakings from various industries. 

The GNCA monitored two markets: glass waste collection/recycling and fuel  (gasoline and 
diesel).  Monitoring  of  three  other  markets  is  ongoing:  the  motor  fuel  market  (compressed 
natural  gas  and  liquefied  petroleum  gas),  the  nut  market  and  insurance  services  offered  by 
banks when granting credit. 

State aid 

The legal framework on State aid is not in line with the EU acquis. The Law on competition 
foresees that notification and prior approval of the GNCA is required only for aid for economic 
development  of  certain  regions  and  aid  to  promote  the  preservation  of  culture  and  cultural 
heritage. Other types of aid, such as aid environmental aid; in the case of a disaster; aid granted 
to  fulfil  international  obligations;  and  aid  for  important  national  projects  do  not  require 
notification and prior approval of the agency. The agency has conducted an analysis on the 
current gaps and priorities to be addressed in the area of State aid, including the availability of 
a State aid registry. 

On the institutional framework, enforcement of State aid provision of the Law on competition 
is  the  responsibility  of  the  GNCA.  In  certain  economic  sectors,  such  as  energy,  regulatory 
bodies are responsible for enforcing applicable provisions, on mergers, antitrust and State aid. 
They are also responsible for enforcing the Law on competition. There is no formal complaint 
procedure for State aid.  

The enforcement capacity of the agency needs to be strengthened, notably through relevant 
training for staff. On implementation, no decisions were taken in 2022 on State aid issues, 
only information on de minimis State aid was collected.  

Liberalisation  

Georgia’s competition and State aid legislation is fully applicable to public undertakings and 
those  with  special  or  exclusive  rights.  The  rules  on  financing  services  of  general  economic 
interest are not aligned with the EU acquis. 

78 

 
 
Chapter 9 - Financial services 

EU rules aim to ensure fair competition between, and the stability of, financial institutions, 
namely  banking,  insurance,  supplementary  pensions,  investment  services  and  securities 
markets.  They  include  rules  on  the  authorisation,  operation  and  supervision  of  these 
institutions. 

In the area of financial services Georgia has some level of preparation. Georgia made limited 
progress in the reporting period, by adopting legislation on activity of micro banks covered 
bonds  and  sustainable  finance.  The  country  should  make  further  efforts  to  align  with  the 
financial services acquis, focusing on the priorities identified based on the current state of play.  

In the coming year, Georgia should in particular: 

→  adopt and implement legislation on domestic motor third party liability insurance;  

→  continue efforts in alignment with the EU acquis related to the regulation of banking and 
insurance sectors (including bank resolution and bank deposits guarantee schemes) and the 
regulation of securities markets, investment funds and investment services. 

As regards banks and financial conglomerates, the banking sector appears well capitalised 
(regulatory capital is above 20%, while the Tier 1 capital amounts to over 17%) and highly 
liquid. Following a substantial rise following the outbreak of the pandemic, the level of non-
performing  loans  declined  steeply  in  2021  and  2022.  The  system  of  deposit  insurance  is 
regulated by the Law on deposit insurance, which established the Deposit Insurance Agency, 
implementing the system, and the Deposit Insurance Fund. The Law on Deposit Insurance is 
based on the EU Deposit Guarantee Schemes Directive but requires further alignment with the 
EU acquis. The coverage level in particular is GEL 15 000 (around EUR 5 300), far below the 
EUR 100 000 level needed to comply with the EU acquis. 

Georgia has at its disposal early intervention powers and a resolution regime for banks. The 
National Bank of Georgia is the designated resolution authority. New institutional features have 
been put in place to support the execution of the new regime. Additional steps are needed to 
align the Georgian framework with the EU recovery and resolution framework. Georgia had 
indicated  that  legislation  establishing  a  resolution  fund  and  implementing  the  minimum 
requirements for eligible liabilities would be passed by the end of the reporting period. 

The Law on activity micro banks adopted in February 2023, entering into force on 1 July 2023, 
was designed to increase competitiveness in the market and foster diversification of products 
offered by the microfinance sector.   

As  regards  insurance  and  occupational  pensions,  the  adoption  and  implementation  of 
legislation  on  domestic  motor  third  party  liability  insurance  is  still  pending.  On  28  June, 
Georgia adopted the Law on voluntary private pension, which will enter into force partially on 
1 January 2024, and fully on 1 January 2025. 

For both insurers and reinsurance undertakings, the current supervisory regime in Georgia is 
based on the Solvency I regulatory framework. In December 2022, the NBG developed and 
approved policy guidance on a  corrective action framework for banks, in line with  relevant 
guidelines  of  the  European  Banking  Authority.  These  clarify  the  grounds  for  the  use  of 
supervisory measures, early intervention measures and revocation of banking activity licenses. 

Georgia's  financial  market  infrastructure  legislation  is  only  partly  aligned  with  the  EU 
acquis and the alignment with several EU Regulations is still pending.  

The legislative framework for securities markets and investment services is in place. The 

79 

 
 
Georgian financial sector is moderately sized. The regulated market in Georgia is presented by 
the stock exchange. There are no Multilateral Trading Facilities or Organised Trading Facilities 
on  Georgian  market.  Georgia  has  requirements  regarding  the  listing  on  the  stock  exchange 
which are similar to the rules set out in the EU Listing Directive.   

The Parliament adopted legislation on covered bonds in November 2022 with the objective of 
diversifying the source of financing for the local commercial banks and helping to develop the 
mortgage market.  

The Parliament is also discussing a draft legislation on the development of the securitisation 
instrument for fund raising. 

As regards sustainable and digital finance, in September 2022, the NBG published its working 
paper  on  central  bank  digital  currencies.  In  February  2023  the  NBG  invited  local  fintech 
companies to express interest in participating in a pilot project of the digital lari. 

Georgia has made some progress on sustainable finance. In January 2023, the Regulation on 
Loan Classification and Reporting according to the Sustainable Finance Taxonomy (Taxonomy 
Regulation) entered into force. The Taxonomy Regulation formally defines green, social and 
sustainable  loans  and  imposes  reporting  requirements  for  commercial  banks  on  taxonomy-
aligned  loans.  In  addition,  the  NBG,  in  cooperation  with  various  local  and  international 
stakeholders, has developed the Sustainable Finance Taxonomy for Georgia. The Taxonomy 
provides  the  market  with  a  classification  system  for  identifying  activities  and/or  project 
categories  that  deliver  on  key  climate,  green,  social,  or  sustainable  objectives.  It  is  closely 
linked to  the EU Taxonomy,  but  it is tailored to  the features of the Georgian economy  and 
financial sector and closely follows international practices. Further work could be done in this 
area, in order to implement a comprehensive sustainable finance framework and a disclosure 
regime  for  financial  and  non-financial  companies  taking  into  account  sustainability 
considerations. 

Chapter 28 - Consumer and health protection  

EU  rules  protect  consumers’  economic  interests,  including  in  relation  to  product  safety, 
dangerous imitations and liability for defective products. The EU also ensures high common 
standards for tobacco control, blood, tissues, cells and organs, and medicines for human and 
veterinary use. The EU also has rules for upholding patients’ rights in cross-border healthcare 
and in preparing for and responding to cross-border health threats, including communicable 
diseases. 

Georgia has some level of preparation in the field of consumer and health protection. There 
has  been  limited  progress  in  the  reporting  period  on  consumer  protection  capacity  and  on 
alignment to the EU acquis on blood. Attention should be paid to aligning national legislation 
on consumer protection and on health with the EU acquis and ensuring it is properly enforced. 

In the coming year, Georgia should: 

→  make progress on aligning consumer law with the EU acquis; 

→  ensure that the staffing and capacity of the national competition agency correspond with its 

increased competencies on consumer protection; 

→  make progress  to  align  blood,  tissues,  cells and  organs, tobacco  control  and on medical 

devices with the EU acquis. 

Consumer protection 

The  main  consumer  enforcement  authority  is  legally  the  Georgian  National  Competition 
80 

 
 
Agency (GNCA). After the Law on the protection of consumer rights entered into force on 1 
June 2022, the agency increased its enforcement capacities. For example, it has had a hotline 
in  place  since  September  2022  on  consumer  rights  and  to  file  complaints.  It  also  performs 
awareness raising campaigns.   

Georgia’s national legislation on consumer protection is partly aligned with the EU acquis. It 
is  not  aligned  with  the  EU  acquis  on:  package  travel  and  linked  travel  arrangements; 
timeshares; representative actions; digital content rules; the sale of goods and with the latest 
changes to EU consumer legislation introduced by Directive (EU) 2019/2161. 

Since November 2022, GNCA began receiving consumer complaints and actively conducting 
investigations,  including  in  the  pharmaceutical,  fuel  and  tobacco  markets.  It  also  began 
monitoring prices on the food market. In the first 5 months, 194 applications were submitted 
to GNCA, out of which 118 investigations were launched. Violation of consumer rights was 
proved in five cases (based on 16 applications). Twenty-eight commitment agreements (based 
on 49 applications) have been signed, whereby traders took responsibility to restore the rights 
of affected consumers and to change their policies in line with relevant legislation. 80 % of 
applications were related to distance trading and 20% to on-site trading. Monthly statistics are 
produced and published and will be available in the GNCA’s annual report. 

Georgia’s legal framework on product safety is partly aligned with the EU acquis. Georgia 
currently relies on a ‘pre-notification’ system of market surveillance before placement on the 
market. This is not fully aligned with the EU acquis. Currently, it is only applied to what are 
identified as functions for high-risk products.  In 2022, the agency implemented 461 market 
surveillance inspections, on three types of consumer products (toys, devices working on gas 
fuel and personal protective equipment) and three types of industrial and construction products 
(construction goods, machinery and pressure equipment).  In the reporting period, the agency 
took seventeen types of toys off the market. 

Public health 

As regards public health, a national health strategy covering the period 2022-2030 is in place. 
The objectives are to achieve universal health coverage, ensuring equal access to affordable 
health care and the highest level attainable of health services with financial risk protection for 
all.  On  eHealth,  some  elements  are  in  place,  such  as:  a  registry  of  new  cases;  a  hospital 
discharge registry; data collection on cancer, births and pregnancies. The national strategy for 
2017-2030  has  been  developed  to  support  healthcare  for  mothers  and  new-born  children.  
Maternal mortality remains high in Georgia, most deaths resulting from preventable causes. 
The total health expenditure in Georgia as a % of GDP – 7.4%. 

Georgia  is  partly  aligned  with  the  EU  acquis  on  tobacco  control.  Georgia  adopted 
implementing legislation on tobacco products and packaging designed to partly align to the EU 
acquis in December 2022. It is a party to the WHO Framework Convention on Tobacco Control 
but is yet to complete its accession to the protocol to eliminate illicit trade in tobacco products.  

Georgia  is  partly  aligned  with  the  EU  acquis  on  serious  cross-border  threats  to  health 
including communicable diseases. It has established an epidemiological surveillance system; 
a  list  of  communicable  diseases  that  are  subject  to  surveillance;  a  central  body  for  disease 
control and public health; and an early warning system to notify serious cross-border threats to 
health. Georgia has in place its 2023-2030 strategy for the prevention of non-communicable 
diseases. 

With regards to blood, tissues, cells and organs Georgia’s legislation on blood is designed to 
be aligned with the relevant EU acquis, it is not aligned on tissues, cells and organs. Oversight 

81 

 
 
functions are not yet fully carried out in line with EU standards. 

As regards patients’ rights in cross-border healthcare, under Georgia’s legal base, citizens 
of EU Member States and other countries can receive medical treatment in Georgia. In addition, 
reimbursement is foreseen for Georgian citizens under certain conditions for treatment abroad 
within the framework of a relevant state programme. 

On  community-based  mental  health,  Georgia’s  2022-2030  national  mental  health  strategy 
supports the deinstitutionalisation of mental health services by strengthening community-based 
care for people with mental health issues. In 2022, 8.4% of beneficiaries were treated in mental 
health  hospitals,  while  the  remaining  received  needed  care  at  one  of  the  community-based 
services. 

Georgia is implementing drug abuse prevention and harm reduction legislation to be aligned 
with  the  relevant  EU  recommendations.  Georgia’s  legislation  is  partly  aligned  with  the  EU 
acquis  to  protect  the  workers  from  adverse  health  effects  arising  from  exposure  to 
electromagnetic fields in working conditions. 

As regards non-communicable diseases, Georgia has national cancer screening programmes. 
There is also a national programme in place to treat and provide pharmaceutical products to 
persons with rare diseases. 

Georgia’s national legislation is partly aligned with the EU acquis on market authorisation of 
medicines all products for human use. Pharmaceutical reference prices have been approved 
in early 2023. Issues remain with quality assurance and post-marketing monitoring. As regards 
medicinal products for veterinary use, information was not available on the state of legal 
alignment to the EU acquis, nor was it available on the administrative capacity or enforcement 
system. Information was also not available on aligning cosmetics with the EU acquis. Georgia 
is not aligned with the EU acquis on cosmetics or on medical devices. 

As regards health inequalities, access to health services for the Roma population is guaranteed 
under Georgia’s laws on healthcare and on the elimination of all forms of discrimination.  

The Georgian Law on medicines and pharmaceutical activities is a legal basis for the state to 
ensure the lawful practice of circulating pharmaceutical products. The pharmaceutical sector 
in Georgia has a high-level of vertical and horizontal integration and a holding structure.  The 
medications and medical equipment are procured mainly by means of electronic public bidding 
at specifically designated electronic platform. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH  

This  cluster  covers:  digital  transformation  and  media  (Chapter  10);  taxation  (Chapter  16); 
economic  and  monetary  policy  (Chapter  17);  social  policy  and  employment  (Chapter  19); 
industrial  policy  (Chapter  20),  science  and  research  (Chapter  25);  education  and  culture 
(Chapter 26); and the customs union (Chapter 29).  

Georgia  has  reached  a  moderate  level  of  preparation  in  economic  and  monetary  policy; 
enterprise and industrial policy; science and research, education and culture; and the customs 
union. Georgia has some level of preparation in digital transformation and media, social policy 
and employment and has  some level  of preparation/is  moderately prepared in  taxation. The 
country has made some progress in digital transformation and media, taxation and science and 
research and limited progress in enterprise and industrial policy.  

Chapter 10 - Digital transformation and media   

The EU supports the smooth functioning of the internal market for electronic communications, 
electronic commerce and audio-visual services. The rules protect consumers and support the 
82 

 
 
universal availability of modern services.  

Georgia has some level of preparation in the area of information society and media. Some 
progress  was  made  towards  alignment  with  the  Directive  on  audio-visual  media  services 
(2010/13/EU)  with  amendments  addressing  the  key  issues  of  non-incitement  to  hatred  and 
protection of minors. Georgia should ensure its digital policy strategies are aligned with the 
EU  strategies  ‘Shaping  Europe’s  Digital  Future’  and  the  ‘Digital  Compass’.  The  lack  of  a 
universal  service  regime  prevents  universal  services  being  implemented  under  the  EU 
Electronic Communications Code. 

In the coming year, Georgia should: 

→  ensure high-level as well as inter-institutional coordination on digitalisation reforms; 

→  swiftly  implement  the  recently  adopted  Laws  (Law  on  infrastructure  sharing  and  on 

Electronic-commerce) to align with the EU acquis; 

→  strengthen  the  effective  independence  of  the  media  regulator  (the  Georgian  National 
Communication  Commission),  and  develop  a  cybersecurity  strategy  towards  alignment 
with  the  directive  on  measures  for  a  high  common  level  of  cybersecurity  across  the 
union(NIS 2). 

Georgia  lacks  an  overarching  digital  strategy,  although  the  2021  national  broadband 
development strategy covers the majority of digital related topics and seeks to address the urban 
rural  divide  by  investing  in  broadband  connectivity.  A  system  to  monitor  the  progress  of 
implementing the strategy should be developed.  

Internet  is  accessible  to  over  88%  of  households  in  the  country  with  the number  of  mobile 
internet  subscribers  rapidly  growing.  Full  coverage  with  high-speed  internet  of  some  rural, 
remote and high mountainous areas remains a challenge.  

On  21  May  2023,  parliament  adopted  the  Law  on  infrastructure  sharing,  inspired  by  the 
Broadband Cost Reduction Directive (2014/61/EU). 

On 13 June 2023, the parliament adopted the law on "Electronic Commerce" and related laws, 
aiming to regulate the rights and obligations of intermediary service providers, and enhance 
consumer  protection  through  increased  transparency  and  standardisation  of  information 
services.  

In the field of information society services, Georgia’s basic legal framework on the open reuse 
of public sector information is only partly aligned with the Directive on open data. Georgia has 
not  aligned  with  the  Regulation  on  geo-blocking  or  the  platform-to-business  relations 
Regulation, the Digital Markets Act and the Digital Services Act. Georgia’s participation in 
the  various  areas  of  digital  research  and  innovation  covered  by  Horizon  Europe  (artificial 
intelligence, microelectronics, photonics, quantum, etc.) is limited. The Law on e-commerce 
was adopted on 13 June 2023. 

The 2021-2024 cybersecurity strategy would benefit from alignment with the latest EU acquis 
in the field (NIS 2 Directive). Implementing legislation – such as a technical regulation of the 
network sensor of critical information system entities of first and higher categories – is being 
prepared.  

Georgia has expressed an interest to join the EU’s ‘roam like at home’ regime, which would 
require  approximation  of  the  roaming-related  EU  acquis  and  its  implementation.  The 
Commission has assessed that a long-term roaming arrangement between the EU and Georgia 
is possible, building on Georgia’s Association Agreement with the EU. As a follow up, Georgia 

83 

 
 
should  start  aligning  with  the  relevant  EU  acquis.  In  addition,  a  revised  regional  roaming 
agreement  is  under  negotiation  among  the  five  concerned  eastern  partnership  countries 
(excluding Belarus). 

Regarding audiovisual policy, amendments to the broadcasting Law were adopted in October 
2023. The issues of protection of minors and non-incitement to hatred were addressed in line 
with  the  Audiovisual  Media  Service  Directive.  The  Law  also  introduced  a  self-regulation 
system with a legal backstop as recommended by the EU. Outstanding issues remain on  the 
effective  independence  of  the  national  regulator.  In  particular,  further  work  should  be 
undertaken to increase transparency (i.e publishing of all decisions) and reinforce the grounds 
for dismissal.  

The  Georgian  National  Communication  Commission  (ComCom)  is  the  national  regulatory 
authority.  In  addition  to  the  Constitution,  the  Law  on  National  Regulatory  Bodies  formally 
establishes  ComCom’s  independence  both  financially  and  politically,  although  there  are 
problems with the effectiveness of this independence. ComCom is mandated to develop media 
literacy. Both state and non-state actors are working to promote and improve media literacy 
skills of children and teachers. During the reporting period, the Ministry of Education and the 
National  Communication  Commission  trained  600  teachers  in  tackling  disinformation  and 
promoting digital literacy.  

Chapter 16 - Taxation   

EU rules on taxation cover value added tax, excise duties and aspects of corporate taxation. 
They  also  cover  cooperation  between  tax  administrations,  including  the  exchange  of 
information to prevent tax evasion. 

Georgia is in between some and moderate level of preparation in terms of taxation. There 
was some progress in the reporting period aligning the legislation with the EU acquis on VAT 
and  excise  duties.  Georgia  undertook  important  legal  and  administrative  steps  in  order  to 
introduce an automatic exchange of financial account information in line with OECD global 
standards. 

In the coming year, Georgia should: 

→  further  align  legislation  on  direct  taxation  with  the  EU  acquis  and  international  best 

practices. 

→  ensure the implementation of the automatic exchange of tax information with EU Member 

States in line with the OECD Global Standards. 

→  further align legislation on VAT and excise duties with the EU acquis. 

As regards indirect taxation, the standard VAT in Georgia is 18%. Tax legislation on VAT is 
partly aligned with  the EU  acquis. As regards excise duties on tobacco products,  there was 
limited  progress  in  reintroducing  duties  equally  for  national  and  imported  products.  Excise 
duties on alcohol and alcoholic beverages are partly aligned. Georgia confirmed that it will 
reach the EU minimum levels of taxation on tobacco products by the end 2025. Progress is 
needed,  energy products and electricity to  reach  the EU minimum  levels  of taxation and to 
adopt the EU’s system of warehousing and duty suspension. The EU excise movement control 
system has to be put in place.  

As  regards  direct  taxation,  residents  of  Georgia  are  taxed  on  their  worldwide  income;  the 
income tax rate is 20%. Income from rent is taxed by 5% and from gambling business by 10%. 
A special tax regime is applied for micro and small businesses. Since 2017, only distributed 
profit is  subject  to  taxation, retained or  reinvested profit is  not  taxed. Legislation for direct 
84 

 
 
taxation  has  to  be  brought  in  line  with  a  number  of  EU  Directives  (on  merger,  parent-
subsidiarity, interest and royalties). 

Georgia has taken no action to lay down rules that would cover the scope of the Directives on 
parent-subsidiary, interest and royalties, merger, and anti-tax avoidance. 

Regarding administrative cooperation and mutual assistance, Georgia is a member of the 
inclusive framework on base erosion and profit shifting. Georgia has signed the Multilateral 
Convention  to  implement  tax  treaty-related  measures  to  prevent  base  erosion  and  profit 
shifting. The country is also a member of the OECD Global Forum on Transparency and the 
OECD Exchange of Information for Tax Purposes. Georgia has committed to introducing the 
international standard on automatic exchange of financial account information by 2023. Double 
taxation agreements with all EU Member States are in force.  

In  November  2022,  Georgia  signed  the  Multilateral  Competent  Authority  Agreement  on 
Automatic  Exchange  of  Financial  Account  Information.  In  December  2022,  Georgia  then 
passed primary legislation and signed the Common Transmission System Agreement, which 
will take effect before their first exchange in 2024. Georgia also joined the Global Revenue 
Statistics Initiative in December 2022. 

Georgia joined and is a full member of the EU Fiscalis programme. 

On  operational  capacity  and  computerisation,  the  Georgian  revenue  service  under  the 
Ministry of Finance is tasked with collecting all national taxes. It is also tasked with customs 
control of incoming and outgoing goods. The revenue service employs around 3 700 staff in 
15 departments, organised along functional lines. This allows for a separation of policy and 
planning, as well as operational and support responsibilities. The revenue service adequately 
performs its functions and is broadly in line with international practice.   

Chapter 17 - Economic and monetary policy   

EU rules require the independence of central banks and prohibit them from directly financing 
the public sector. Member States coordinate their economic policies and are subject to fiscal, 
economic and financial surveillance. 

Georgia is moderately prepared in the area of economic and monetary policy. No progress 
was made in the reporting period. Any change to the central bank’s governance framework 
should be carefully contemplated not to undermine its independence.  

In the coming year, Georgia should: 

→  maintain  the  independence  of  the  National  Bank  of  Georgia  and  ensure  an  orderly 

appointment of the next governor of the bank;  

→  make  steps  towards  strengthening  the  institutional  set  up  of  the  independent  fiscal 
institution, its legal mandate and the capacity to undertake qualitative analytical work. 

On monetary policy, the country’s legal framework is partially aligned with the EU acquis. 
The National Bank of Georgia (NBG) oversees monetary policy, and its primary objective is 
to ensure price stability, which is in line with the EU monetary policy legislative framework.  

The NBG intervenes sporadically to offset short-term fluctuations arising from capital flows. 
Last year’s NBG interventions on foreign exchange markets contributed to increased foreign 
currency reserves. 

The institutional independence of the NBG is guaranteed by the constitution and the organic 
Law on the NBG. The NBG is presided by the governor and the board; the bank’s governor is 

85 

 
 
selected  by  the  bank’s  board  and  appointed  by  the  President.  The  incumbent  Governor 
completed  his  seven-year  term  in  March  2023.  His  successor  needs  to  be  appointed  in  an 
orderly manner to ensure that the independence of the NBG is maintained.  

In February 2023, the amendments adopted by the Parliament created a new position of first 
vice-president  of  the  NBG  to  assume  the  role  of  an  acting  governor  after  the  expiry  of  the 
governor’s  term  for  an  undetermined  period  of  time.  This  provision  is  not  in  line  with  EU 
acquis, which requires that the statutes of national central banks should provide clear rules for 
the  appointment  of  the  new  governor  in  order  to  ensure  the  institutional  independence  and 
avoid any external interference. The amendments were subsequently vetoed by the President 
of Georgia. Parliament overrode the veto with the adoption of amendments on 13 June 2023. 
In line with these amendments, the first vice-president of the bank, acting also as its governor, 
was selected in June. In September, three vice presidents resigned over a decision taken by the 
acting  governor  to  reverse  an  initial  NBG  decision  to  enforce  US  sanctions  imposed  on  a 
Georgian-Russian businessman. 

Regarding economic and fiscal policy, the system of public finances in Georgia is considered 
strong and transparent, as confirmed by the Public Expenditure and Financial Accountability 
Assessment carried out in 2022. However, there are some issues where further alignment with 
the  international  standards  and  EU  acquis  is  needed,  including  on  the  role  of  Georgia’s 
independent fiscal institution.  

The Parliamentary Budget Office (PBO) provides budget analysis and macro-fiscal projections 
and is considered by the authorities as the independent fiscal institution. A self-assessment in 
line with the OECD Principles for Independent Fiscal Institutions carried out by the PBO in 
2022  indicated  several  areas  for  improvement,  including  PBO’s  official  mandate,  legal 
guarantees of independence and autonomy, strengthening skills in quantitative analysis, and 
the necessity to add an advisory council. Therefore, the institutional set up, legal mandate and 
capacity  to  undertake  analytical  work  of  the  independent  fiscal  institution  need  to  be 
substantially strengthened to be in line with the OECD and EU requirements. 

Georgia implements a medium-term budgetary framework that covers macro-fiscal framework 
and sectoral expenditures over a four-year period.  

Georgia’s numerical fiscal rules set ceilings on general government deficit (3% of GDP) and 
government debt (60% of GDP). These rules were strictly complied with before the pandemic, 
then suspended and complied with again in 2022. 

Chapter 19 - Social policy and employment   

EU rules in the social field include minimum standards for labour law, equality, health and 
safety at work and non-discrimination. They also promote social inclusion, social protection, 
and social dialogue at EU level. 

Georgia has some level of preparation in the field of social policy and employment. Some 
progress was made in the reporting period, including the adoption of resolutions on health and 
safety  at  work  aimed  at  aligning  with  the  EU  acquis,  and  strengthening  the  capacity  of  the 
Labour  Inspection  Office.  On  social  policy,  further  steps  were  taken  towards  a  more 
comprehensive and sustainable social protection system. Across all policy areas Georgia needs 
to continue work on aligning with the EU acquis. 

In the coming year, Georgia should: 

→  further align with the EU labour and occupational safety and health acquis; specifically with 

the pending Directives on occupational safety and health; 

86 

 
 
→  adopt a comprehensive and sustainable social protection system, including unemployment 
and minimum income benefits, promote social dialogue, and engage in a wider discussion 
on the reform of the minimum wage; 

→  ratify and implement relevant International Labour Organization conventions, in particular 

C081 on labour inspection. 

Regarding labour law, Georgia has legislation concerning all eight Directives where it has an 
obligation to harmonise with the EU acquis under the AA/DCFTA. Legislation concerning the 
rights of young workers aims at aligning with the relevant EU acquis. Georgia demonstrates 
an overall good understanding of the EU acquis in most areas of labour law. However, further 
alignment efforts are required, including as regards directives applicable in specific sectors, 
such as transport. 

The Labour Code reform of 2020 significantly improved the labour regulations in the country, 
however,  the  reform  contains  major  gaps  in  terms  of  introducing  gender-responsive  family 
policies in particular paternity or carer’s leave and flexible working arrangements.  

Georgia  has  not  yet  ratified  some  relevant  International  Labour  Organization  conventions, 
including those on labour inspections, occupational safety and health at work, and violence and 
harassment at work. As regards labour inspections, Georgia is working towards ratification of 
ILO Convention 81.  

On occupational health and safety at work, the 2019 Organic Law on Occupational safety is 
mainly based on the EU Framework Directive. However, it seems not fully aligned with the 
EU acquis on occupational safety and health since it only applies to employers and workers 
bound  by  a  labour  agreement  –  including  child  workers,  –  and  limits  the  possibility  to 
detect/identify instances of exploitation and forced labour. This limits its application and leaves 
out informal employers and employees outside its application.  

Work  is  also  ongoing  to  align  legislation  with  individual  directives  on  health  and  safety  at 
work.  In  this  context,  between  July  2022  and  May  2023,  Georgia  adopted  four  resolutions 
aimed at incorporating provisions of 5 EU Directives (90/270/EEC, 89/654/EEC, 89/656/EEC, 
92/58/EEC, 90/269/EEC).  

The enforcement of labour law and health and safety at work is covered by the mandate of the 
Labour Inspection Office under the Ministry of Internally Displaced Persons. In the course of 
2022, the Labour Inspection Office’s capacities – both institutional and human resource – were 
strengthened. Due to the specific nature of the work, continuous upskilling activities are needed 
to maintain a high quality of inspection activities. 

During  2022,  35  people  died  –  compared  to  37  in  2021  –  and  253  were  injured  at  work. 
Although  there  is  a  steady  decrease  in  the  number  of  occupational  accidents  the  average 
incidence of fatal occupational accidents remains higher than in the EU. 

Concerning social dialogue there is a limited coverage of collective agreements in the country. 
Collective agreements are mostly signed at company or enterprise level and only one sectoral 
collective agreement has been concluded. Social partners require capacity-building activities in 
order to allow for effective social dialogue.  

On  employment  policy,  there  are  two  main  policy  documents:  the  Law  on  Employment 
Promotion  and  the  2019-2023  National  Strategy  of  Labour  and  Employment  policy.  Some 
efforts  have  been  made  to  adopt  legislation  in  line  with  the  EU  acquis  on  guidelines  for 
employment policies and on enhanced cooperation between public employment services.  

On Labour force participation, the government’s new initiative to improve the employability 
87 

 
 
of  the  population  receiving  social  allowances,  managed  by  the  State  Employment  Support 
Agency, benefited 29 323 individuals between March 2022 and March 2023.  

The unemployment rate in 2022 in Georgia constituted 17.3%, down from 20.6% in 2021, 
presumably as a result of post-COVID-19 recovery. However, already in the first quarter of 
2023, unemployment rate increased to 18%. Unemployment rate among men is higher than 
that  of  women  (19.3%  vs  14.6%).  In  2022,  women’s  labour  force  participation  rate  (%) 
remained much lower (41.5%) compared to men’s (64%). Women’s employment rate (%) is 
again much lower (35.4%) than that of men (51.7%). 

Informal employment remains a challenge, with approximately a third of the population being 
engaged in it in 2022 (28.4%). Here, again, more men are engaged in informal employment 
that women (33.4% vs 22.5%). 

Share of NEETs (youth aged 15-29 not in employment, education or training) remains high, 
ranging between 23.4% (15-24) and 30.7% (15-29 years old) and needs to be addressed. 

On social protection and inclusion Georgia’s social protection system is funded by the general 
tax revenue, except for statutory funded pensions, which are funded by contributions. In 2022, 
5.7%  of  GDP  was  spent  on  social  protection  programmes  –  compared  to  6.4%  in  2021. 
Universal pension was increased in 2023. In 2021, 17.5% of the population lived below the 
national poverty line. 

In February 2023, the Ministry of Internally Displaced Persons from the Occupied Territories, 
Labour, Health and Social affairs adopted the 2023-2030 action plan for the strategy on the 
independent  living  and  de-institutionalising  of  persons  with  disabilities.  This  started  the 
process  of  shifting  from  institutional  to  community-based  care  for  vulnerable  people.  The 
legislative framework to enable municipalities to plan social services, as well as their capacities 
to implement these, need to be strengthened.  

Georgia  lacks  a  national  strategy  on  the  de-institutionalisation  of  children.  However,  the 
government  has  made  steps  to  deinstitutionalise  remaining  non-state  regulated  religious 
residential institutions. Further measures are needed to address the lack of proper standards in 
boarding schools.  

The Constitution of Georgia includes several articles related to principles and rights at work, 
including  equality  and  non-discrimination.  The  Law  on  the  elimination  of  all  forms  of 
discrimination forbids all forms of discrimination.   

As regards equality between women and men in employment and social policy, the basic 
institution and provisions exist in current legislation.  

The  government  increased  the  state  allowance  of  maternity/child  adoption  benefits  from 
GEL 1 000 to 2 000 from 1 January 2023. Secondary school teachers can now receive 100% 
salary during maternity leave. 

Chapter 20 - Enterprise and industrial policy  

EU  industrial  policy  strengthens  competitiveness,  facilitates  structural  change,  and 
encourages  a  business-friendly  environment  that  stimulates  small  and  medium-sized 
enterprises. 

Georgia  is  moderately  prepared  in  the  area  of  enterprise  and  industrial  policy.  There  was 
limited progress in the reporting period. Special attention is needed to diversify inward foreign 
direct investment to tradable industries and linkages to the domestic industrial tissue.  

In the coming year, Georgia should: 

88 

 
 
→  adopt strategies for green growth and on investment promotion; 

→  develop  an  industrial  strategy  and  action  plan  with  stakeholder  consultations  for 

implementation starting 2025; 

→  align with EU legislation on late payments; 

→  strengthen the capacity of the administration and of the private sector to apply regulatory 

impact assessments. 

As  regards  industrial  and  enterprise  policy  principles,  Georgia  bases  its  development 
strategy  on  the  driving  forces  of  infrastructure  development,  domestic  and  foreign  direct 
investment in industry as well as on SMEs, notably innovative start-ups. digital transformation 
(see  chapter  10  -  Digital  transformation  and  media).  Georgia’s  government  programme 
expresses the orientation of its industry strategy, yet not its means. Its expiry in 2024 requires 
the  early  start  of  formulating  a  strategy  for  economic  and  industrial  development,  with 
sufficient concrete detail to reduce a fragmentation and thorough stakeholder consultations. An 
update to the “investment promotion strategy and action plan 2020-2022” is overdue and the 
adoption of a green growth strategy still outstanding. Georgia is piloting the design of a smart 
specialisation  strategy  in  the  Imereti  region.  The  reduction  of  skill  mismatches  through  re-
training of the workforce remains to be seen.  

The  business  environment  is  overall  good  with  certain  important  challenges  in  need  of 
determined  improvement  (see  the  section  on  Functioning  of  product  markets).  Informal 
business practices may hinder scale up notably in non-food manufacturing. 

The  government  adopted  in  December  2022  a  new  governance  code  for  state-owned 
enterprises. A strong oversight role of the Ministry of Finance is part of it. Three of the main 
state-owned enterprises started introducing the new governance in the first quarter of 2023. 

The  scope  of  applying  regulatory  impact  assessment  remains  limited.  Capacity  within  the 
government and within the private sector needs to be strengthened in this regard.  

The SME policy environment in Georgia is generally considered to be well-developed and 
supportive. The strategy for the development of small and medium-sized enterprises for 2021-
2025 continues to be implemented. Women entrepreneurship policies were enhanced with the 
state concept on the economic empowerment of women. The SME definition is in line with the 
EU definition to the extent that it is based on staff headcount and annual turnover. 

As  regards  industrial  and  enterprise  instruments,  an  alignment  is  needed  with  the  Late 
Payment  Directive.  Notably  provisions  on  payment  terms  require  clarification  and  the  key 
provision on late payment interests to be introduced. 

Enterprise  Georgia  is  launching  an  export  assistance  programme  to  promote  the  growth  of 
export-oriented small and medium-sized businesses.  A technology transfer pilot programme 
has been successfully implemented by the Georgian Innovation and Technology Agency. The 
government  plans  to  adopt  and  expand  the  programme  under  the  state  budget  and 
institutionalise a central technology transfer office at the innovation and technology agency.  

No practical steps were taken to implement the cluster development framework.  

Negotiations are currently in their early stages regarding Georgia’s participation in the new 
Single  Market  Programme.  In  the  event  of  a  positive  outcome  of  these  negotiations, 
considerable  awareness-raising and capacity building  would be needed to support Georgian 
applicants.  

As regards sectoral policies, noteworthy is the expected development of a new mining code. 

89 

 
 
Chapter 25 - Science and research   

The  EU  provides  significant  support  for  research  and  innovation.  All  Member  States  can 
participate in the EU’s research and innovation programmes and benefit from them, especially 
where there is scientific excellence and solid investment in research and innovation. 

Georgia is moderately prepared in the area of science and research. There was some progress 
in the reporting period, particularly in terms of integration into the European Research Area 
(ERA) and increasing participation in Horizon Europe. Georgia expressed a commitment to 
participate in all 20 ERA Actions, launched open science initiatives and  opened its Horizon 
Europe Office. 

In the coming year, Georgia should: 

→  prepare  and  adopt  a  national  European  research  area  roadmap  including  a  strategic  and 
well-defined approach to open science, researchers’ mobility, and implementing European 
Research Area voluntary actions; 

→  proactively support cooperation between research and industry and promote innovation in 

line with the 5 flagships of the new European innovation agenda;  

→  strengthen  the  implementation  and  internationalisation  of  sector-specific  scientific 

priorities, and implement smart specialisation in the Imereti Region.  

Georgia has been taking important steps to modernise its research and innovation policy and 
to align with EU policies, following the recommendations of the Horizon 2020 Policy Support 
Facility. The new Unified National Strategy for Education and Science for 2022-2030 and the 
Sectoral Action Plan for 2022-2024 were adopted in 2022. Both are aligned with the strategic 
objectives of the European Research Area. The internationalisation strategy approved in March 
2023  for  the  Shota  Rustaveli  National  Scientific  Foundation  should  contribute  to  further 
integration into the European Research Area. 

Since  January  2021,  Georgia  has  been  associated  to  the  framework  programme  Horizon 
Europe with 16 grants awarded to Georgian research and innovation stakeholders, a success 
rate of 16.54% and an overall EU contribution of EUR 2.2 million. Georgia joined the European 
Cooperation in Science and Technology (COST) association in 2022. Georgia remains active 
in Eastern Partnership regional cooperation on research and innovation. 

There were 11 860 researchers in Georgia in 2021. State funding for science and research is 
gradually increasing. In 2023, the total state funding amounts to EUR 27,563,787.20 which is 
13.8% higher than in 2022. 

Georgia  has  successfully  implemented  several  measures  in  the  reporting  period  aiming  to 
increase  its  participation  in  Horizon  Europe.  A  Georgian  researcher  mobility  scheme  was 
launched  with  EU  funding.  The  Georgian  Horizon  Europe  office  trained  stakeholders  in 
proposal drafting and organised National Contact Points (NCP) information events. Georgia is 
well connected to all NCP Networks (including the Widera network). 

Georgia launched in cooperation with the European Open Science Cloud Association a national 
open  science  cloud  (GEOSC)  and  took  important  steps  to  establish  the  GEOSC  National 
Association and to integrate in the European Open Science Cloud. 

The  Georgian  Innovation  and  Technology  Agency  (GITA)  launched  new  national  funding 
schemes for public grants  and established  a centralised Technology  Transfer Office (TTO). 
Georgia  should  be  encouraged  to  take  up  the  opportunities  presented  by  the  European 
Institution of Innovation and Technology (EIT).  

90 

 
 
Work  on  developing  a  regional  smart  specialisation  strategy  in  Imereti  was  launched 
following  the  finalisation  of  the  entrepreneurial  discovery  process  in  October  2022.  The 
adoption of the strategy document is planned for the end of 2023. 

Chapter 26 - Education and culture  

The EU supports cooperation in education and culture through funding programmes and the 
coordination of Member State policy through the ‘open method of coordination’. The EU and 
the Member States must also prevent discrimination and ensure quality education for children 
of migrant workers, including those from disadvantaged backgrounds. 

Georgia  is  moderately  prepared  in  the  area  of  education  and  culture.  There  was  some 
progress in  the reporting period in  that policies are in  place which need  to  be adopted and 
implemented. The education system and youth policy, and training and qualifications policy, 
are broadly aligned with EU objectives. Cultural policy broadly reflects the general priorities 
of the new European agenda for culture. Georgia enjoys a good level of cooperation with its 
European partners on sport. 

In the coming year, Georgia should: 

→  implement its education and science strategy, and adopt and start implementation of the 

2022-2027 vocational education and training strategy; 

→  adopt and start to implement the 2022-2027 career guidance strategy; 

→  enhance public consultation and civil dialogue on culture. 

On education and training, the constitution ensures the right to education.  In August 2022 
the government approved a unified strategy of education and science for 2022-2030. 

Data  collection  on  education  is  well-developed,  overseen  by  EMIS  –  the  education 
management and information system12. Georgia participates in international surveys, such as 
PISA – the OECD programme for international student assessment. In the 2018 PISA studies, 
Georgia’s  share  of  15-year-old  underachievers  in  reading  was  64.4%,  compared  to  an  EU 
average of 22.5%. Georgia participated in PISA 2022 and results will be available in Autumn 
2023. 

In the field of higher education, Georgia has been a member of the Bologna process since 2005 
and has ratified the Lisbon Recognition Convention.  

Concerning social inclusion in education, the state ensures universal access to primary, basic 
and  secondary  education  for  every  child.  The  Law  on  general  education  and  the  national 
curriculum  recognise  the  individual  and  alternative  forms  of  education.  For  accessible  and 
quality education, Georgia developed additional services for students with special educational 
needs in public schools. 

In the field of vocational education training (VET), Georgia aims to promote private sector 
involvement in work-based learning and dual education. Creating partnerships with business 
is a guiding principle in Georgia’s technical and VET reform. The Vocational Skills Agency 
was established in 2021 by the Ministry of Education and Science and Georgian Chamber of 
Commerce and Industry to promote interaction and partnership with private sector. Two new 
strategies: the 2022-2027 VET strategy and career management services strategy for all formal 
education levels are expected to be approved in  2023. Parliament adopted on 28 June 2023 

12 EMIS collects data on pupils/students and teachers/trainers at the different levels and sectors of the 
educational system, including: early childhood education and care; school education; vocational education and 
training; higher education; and adult learning.  

91 

 
 
 
amendments  to  the  Law  on  education  quality  enhancement  regarding  teaching  of  VET 
programmes. 

In 2022, Georgia joined the European Alliance for Apprenticeships. 

Georgia  has  revised  its  regulations,  procedures  and  tools  to  align  with  the  EU’s  2012 
recommendation on validation of non-formal and informal learning. 

The development of digital skills is an integral part of Georgia’s educational curricula in VET 
and at each level of higher education. 

On green education the new national strategy places emphasis on digital transformation, global 
citizenship,  democratic  culture,  and  the  green  transition,  and  sustainable  development  is 
required in institutional and program level programmes. Green and digital education and STEM 
are  priority  topics  of  the  new  national  curriculum,  and  teacher  training  on  environmental 
education  and  on  sustainable  development  takes  place.  In  order  to  promote  scarce 
environmental professions, the "Green Scholarships" programme was introduced. 

In the field of youth policy, both the 2020-2030 Georgian national youth policy concept and 
the 2023-2026 state youth strategy prioritise the active involvement of young people in public 
life and democratic processes. There are no concrete mechanisms for youth  participation  in 
policy making at national and local levels. although the local self-government code describes 
the principles and forms of citizen’s participation in local self-government in general.  

Georgia cooperates on sport with European partners, including through the European Week of 
Sport Beyond Borders and the Council of Europe’s sport partnership.  

Overall, Georgia’s cultural policy documents and programmes, including the 2020-25 culture 
strategy, reflect the general priorities of the new European agenda for culture, although in the 
reporting period there were a few cases of limiting cultural freedom. There is limited dialogue 
on overall cultural policy between the government and civil society in general. 

Georgia participates in  international  actions of the  2021-2027  Erasmus+ programme  and  in 
eTwinning, and benefits from international youth actions of Erasmus+ and European Solidarity 
Corps programmes, participates in the Culture and Cross-Sectoral (and partially in the MEDIA) 
strands of the Creative Europe programme, and regional actions such as EU4Culture. 

Chapter 29 - Customs union  

All Member States are part of the EU customs union and follow the same customs rules and 
procedures.  This  requires  legislative  alignment  as  well  as  adequate  implementing  and 
enforcement capacity, and access to the common computerised customs systems. 

Georgia is moderately prepared in the area of the customs union. There was some progress 
in the reporting period. Customs legislation is not aligned with the EU acquis.  

In the coming year, Georgia should: 

→  further align its 2019 national Law on customs with the Union Customs Code; 

→  improve  administrative  and  operational  capacity  and  increase  resources  of  the  customs 

service; 

→  strengthen the administrative capacity in the IT customs sector. 

Customs legislation 

The new customs code entered into force in 2019 and is partly aligned with the Union Customs 
Code. The code needs to further align on duty relief; value added tax on imports; transit; and 

92 

 
 
simplification procedures. In January 2023, Georgia adopted an amendment to its code on duty 
relief. Namely, Book X, on an exemption from customs debt, which will enter into force on 1 
January 2026.  

Georgia is a party of the Pan-Euro Mediterranean Convention on the rules of origin. Georgia 
also  benefits  from  diagonal  cumulation  of  origin  between  the  Pan-Euro  Mediterranean 
Convention member countries. Georgia completed the procedure to apply revised transitional 
rules of the convention in 2021.  

Since August 2022, there is progress with two authorised economic operators now in operation 
in the country. Nevertheless, the national programme for authorised economic operators needs 
to mature. 

Georgia  is  in  the  process  of  accession  to  the  Convention  on  the  Simplification  in  Trade  in 
Goods and the Convention on a Common Transit Procedure. Georgia has developed the NCTS 
IT  system  and  on  3  April  2023,  Georgia  has  started  the  national  application  of  transit  and 
published national instructions on the possibility of using the new computerised transit system 
when carrying  out  customs  formalities. For the  past  year,  Georgia regularly attends the EU 
counter-terrorism coordinator working group meetings as an informal observer. 

The risk management system is automated and compares import, export and transit data against 
active risk profiles.  

The legislation on customs enforcement of intellectual property rights is generally in line with 
the EU acquis, despite some divergences. Clarifications are needed on whether Georgia’s law 
on border measures related to intellectual property predicts the destruction of goods suspected 
of infringing intellectual property rights sent in small consignments. Georgia is aligned on ex 
officio  control  measures  on  IPR  at  the  border,  although  trends  for  ex  officio  detentions  are 
declining. 

Georgia seems to have in place a cash controls system that appears to be aligned with the EU 
acquis despite some differentiations. 

The legislation concerning the import and export of cultural goods is in broadly aligned with 
the EU acquis. Cross-border smuggling of tobacco products and other illicit activities in the 
regions  close  to  breakaway  regions  is  an  area  where  improvements  are  needed.  It  is 
recommended  that  Georgia  joins  the  WHO  Framework  Convention  on  Tobacco  Control 
Protocol to Eliminate Illicit Trade in Tobacco Products. 

In  October  2022,  Georgia  expressed  interest  in  deploying  the  electronic  freight  transport 
information  (eFTI  scheme)  within  the  framework  of  the  EU4Digital  project.  Georgia’s 
participation in the eFTI network would further strengthen the regulatory convergence in the 
relevant customs areas. 

Administrative and operational capacity 

The Georgia Revenue Service is the legal entity established under the Ministry of Finance. It 
has  adequate  financial  and  operational  capacity  to  cope  with  assigned  tasks.  The  revenue 
service  needs  to  adapt  its  structure  to  the  EU  customs  requirements  and  attract  additional 
resources. The revenue service also has to upgrade its procedures and customs information and 
technology systems to make it compatible with those of the EU. 

Georgia is a full member of the EU Customs programme. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

The cluster on Green Agenda and sustainable connectivity covers: transport policy (chapter 

93 

 
 
14); energy (chapter 15); trans-European networks (chapter 21); and environment and climate 
change (chapter 27).  

Georgia is at an early stage of preparation in environment and climate change. Georgia adopted 
its long-term low emission development strategy. It has some level of preparation in the areas 
of energy, transport policy and trans-European networks. A new market-based support scheme 
for  renewable  energy  production  was  introduced.  Some  progress  was  achieved  on  trans-
European  networks  and  more  efforts  are  needed  to  improve  transport  and  energy 
infrastructures. Some progress was recorded with the adoption of the National Transport and 
Logistics  Strategy  (2023-2030)  in  August  2023,  the  adoption  of  the  new  Rail  Strategy  in 
February 2023 and the adoption of the Maritime Code in May 2023. More efforts are needed 
in the transport sector, with notable focus on road safety, rail sector reform and incorporation 
of the smart and sustainable mobility strategy principles. Georgia continued improving its civil 
protection system and showcased a clear commitment in strengthening its resilience in the area 
of disaster risk. 

Chapter 14 - Transport policy   

The EU has common rules on technical and safety standards, security, social standards, State 
aid  and  market  liberalisation  in  road  transport,  railways,  inland  waterways,  combined 
transport, aviation and maritime transport. 

Georgia has some level of preparation in terms of transport policy. Some progress was noted 
in  the  reporting  period  with  the  adoption  of  the  National  Transport  and  Logistics  Strategy 
(2023-2030)  and  its  2023-2024  action  plan  in  August  2023,  the  adoption  of  the  new  Rail 
Strategy in February 2023 and the adoption of the Maritime Code in May 2023. Georgia needs 
to make additional efforts on road safety (e.g align with EU acquis concerning the procedures 
for checks on the transport of dangerous goods by road).  

In the coming year, Georgia should: 

→  align  and  implement  itself  with  the  transport  acquis  in  all  sectors  and  at  all  levels  of 

government; 

→  enhance the administrative capacity and infrastructure maintenance for road safety, as well 
as launch and implement awareness-raising campaigns to reduce the high number of road 
accidents and fatalities. 

On general transport, since December 2022, Georgia is an observer member of the Transport 
Community  Treaty  and  is  collaborating  pro-actively  within  the  treaty’s  structures.  This 
association  will  contribute  to  closer  integration  of  Georgia  within  the  EU  transport  market. 
Closer association with the Transport Community can support Georgia on its European path, 
as  the  Transport  Community  plays  an  important  role  supporting  the  enlargement  process 
through the implementation  of the relevant  EU transport  acquis. The national transport and 
logistics  strategy  was  adopted  on  15  August  2023  for  the  period  2023-2030,  with  a 
corresponding  action  plan  for  2023-2024.  Larger  cities  should  develop  sustainable  urban 
mobility  plans,  which  respect  of  environmental  and  social  standards,  following  best  EU 
practices.  

The main competences in the transport sector are exercised at state level by the Ministry of 
Economy and Sustainable Development The other key bodies are: the Land Transport Agency, 
the  Maritime  Transport  Agency  and  the  Civil  Aviation  Agency.  The  gradual  integration  of 
Georgia into the EU internal aviation market is governed by the European Common Aviation 
Area Agreement signed in 2010 and in force since 2 August 2020. 

94 

 
 
Regarding road transport and road safety, the 2022-2025 national Road Safety Strategy was 
approved in July 2022 and is in line with EU and UN targets to reduce fatal and serious road 
traffic  injuries.  Road  safety  is  still  a  concern  with  higher  levels  of  casualties  than  the  EU 
average.  Georgia  is  largely  aligned  with  relevant  provisions  of  the  European  agreement 
concerning the work of crews of vehicles engaged in international road transport. Tbilisi will 
host the Secretariat of the Regional EaP Road Safety Observatory (RSO), due to be established 
in 2023. 

Georgia has not adopted main EU texts related to driving and rest times, such as the Regulation 
on the harmonisation of certain social legislation relating to road transport; the Directive for 
posting drivers in the road transport sector; and the Directive on the organisation of the working 
time  of  people  performing  mobile  road  transport  activities.  Amendments  were  made  to  the 
Regulation on periodic technical inspection in December 2022, including on noise inspection. 
Georgia acceded on 19 September 2016 to the UNECE Agreement concerning the International 
Carriage  of  Dangerous  Goods  by  Road  (ADR)  and  should  now  extend  the  scope  of  its 
legislation  to  the  national  operations  with  dangerous  goods.  Relevant  EU  acquis  (e.g. 
concerning the procedures for checks on the transport of dangerous goods by road) needs to be 
transposed as well. 

Regarding  market  access,  the  regulation  establishing  common  rules  on  conditions  to  be 
complied with to pursue the occupation of road transport operators has been fully aligned for 
domestic  transport  operators,  but  only  partially  for  transport  operators  dealing  with 
international transportation of goods and passengers. 

On  rail  transport,  the  latest  amendments  to  the  Railway  Code  of  May  2023  foresee  the 
establishment of a Railway Transport Agency, under the Ministry of Economy and Sustainable 
Development, as of 1 July 2023. The Agency will act as an incident and accident investigation 
body.  There  is  no  market  and  no  competition  for  rail  services.  Separation  between 
infrastructure  management  and  transport  operations  is  not  provided.  There  is  only  one 
integrated  railway,  the  JSC  Georgian  Railway.  Safety  responsibilities  lay  solely  with  the 
incumbent rail company JSC Georgian Railway. 

There is  no independent safety  supervision.  Technical  specifications for interoperability are 
not implemented.  

On  maritime  transport,  the  country  is  a  member  of  the  Black  Sea  Memorandum  of 
Understanding and has implemented the Directive on port state control to some extent. Georgia 
needs to implement legislation aligning to the Port Services Regulation. The Maritime Code 
was adopted end May 2023 and improves the labour and social status of the Georgian sailors. 
The national procedure for the ratification of the International Labour Organisation’s Maritime 
Labour  Convention  is  completed.  Georgia  also  participates  in  the  Black  and  Caspian  Sea 
(BCSEA  II)  technical  assistance  project  implemented  by  the  European  Maritime  Safety 
Agency (EMSA). 

On civil aviation, Georgia has implemented more than half of the aviation acquis governing 
market access, air traffic management, aviation safety, security, environment, and consumer 
protection which is fully implemented. The EU regulations on social aspects have not been 
implemented yet. Georgia is signatory of EUROCONTROL, the International Civil Aviation 
Organization and the European Civil Aviation Conference. It is an observer of the European 
Union Aviation Safety Agency. 

There  are  some  provisions  on  EU  passenger  rights  and  clear  progress  made  in  terms  of 
passenger rights in the aviation sector. Further efforts are needed to reinforce passenger rights 
in all modes of transport. 

95 

 
 
There are no provisions on multimodal and combined transport. 

Chapter 15 - Energy   

EU energy policy covers energy supply, infrastructure, the internal energy market, consumers, 
renewable energy, energy efficiency, nuclear energy, nuclear safety, radiation protection and 
nuclear safeguards. 

Georgia has some level of preparation in the area of energy. There was limited progress in 
the  reporting  period.  The  country  needs  to  reinforce  interinstitutional  cooperation  and 
coordination  to  improve  its  fragmented  and  inconsistent  legislative  framework.  Overall, 
Georgia  needs  to  step  up  its  efforts  towards  establishing  functional  internal  markets  and 
integrating  into  the  regional  market.  Unbundling  its  energy  utilities  remains  an  important 
priority for Georgia, as does establishing its oil stocks. 

In the coming year, Georgia should: 

→  finalise electricity market opening and the unbundling of the transmission system operators 

in electricity and gas;  

→  transpose  and  implement  the  Electricity  Integration  Package  adopted  by  the  Energy 

Community Ministerial Council in December 2022. 

→  Adopt the National Energy and Climate Plan (NECP) in line with the Energy Community 
2030  energy  and  climate  targets,  taking  due  account  of  recommendations  issued  by  the 
Energy  Community  Secretariat  and  commit  the  necessary  institutional  capacity  for  its 
implementation. 

Georgia developed an adequate regulatory framework and liberalised their energy markets in 
line within a fixed timeframe and in line with the treaty requirements. Parts of the EU acquis 
are derogated since Georgia currently has no direct connection to energy networks of any EU 
or Energy Community Treaty country.  

There are currently no main overarching strategic documents on energy policy in place.  The 
draft National Energy and Climate Plan (NECP) has been submitted to the Energy Community 
Secretariat on 21 July 2023, slightly beyond the deadline of 30 June. The final NECP will have 
to be in line with the Energy Community 2030 energy and climate targets and take due account 
of  recommendations  issued  by  the  Energy  Community  Secretariat.  Georgia  does  not  have 
emergency oil stocks to ensure security of supply. There is a lack of human resources in the 
Ministry  of  Energy,  in  particular  concerning  fulfilling  security  of  supply  obligations.  The 
country  has  not  aligned  with  Directive  on  oil  stocks  imposing  an  obligation  to  maintain 
minimum stocks of crude oil and/or petroleum products. The adoption of gas security of supply 
rules is pending. Georgia’s main electricity supplier, the Enguri/Vardnili hydropower cascade, 
is partially located in the breakaway region of Abkhazia. 

Concerning the internal energy market, Georgia has aligned with the third energy package, 
mainly through the Law on energy and water supply, as well as with a set of implementing 
legislation. The transposition and implementation of the newly adopted Electricity Integration 
Package is still pending (transposition deadline is end of 2023). Georgia has not finalised the 
unbundling of the transmission system operators in electricity and gas. The Georgian electricity 
transmission system operator GSE is still not unbundled, despite the Georgian National Energy 
and Water Supply Regulatory Commission provisionally certified the electricity transmission 
system  operators  in  2021.  The  electricity  distribution  system  operators  are  legally  and 
functionally  unbundled.  The  gas  distribution  system  operators  (including  SOCAR  owned 
undertakings) are not unbundled. The Georgian National Energy and Water Supply Regulatory 

96 

 
 
Commission  is  responsible  for  maintaining  balance  in  the  energy  and  water  supply  sectors 
between the interests of customers and regulated companies. This ensures the development of 
the regulatory framework and promotes competition. 

In the electricity sector, the launch of day-ahead, intra-day, balancing and ancillary services 
markets was postponed. The deregulation of production and large customers follows the market 
opening scheme of the electricity market concept design and is expected to be finalised in the 
upcoming  years.  Small  enterprises  and  households  will  remain  subject  to  the  historical 
electricity supplier. A high number of renewable energy producers are under power purchase 
agreements. A new support mechanism – market-based contracts for differences – has already 
been  introduced.  The  first  auction  for  300 MW  of  renewable  energy  was  successfully 
completed  in  April  2023.  Joint  capacity  allocations  between  Georgia  and  Türkiye  via  the 
allocation platform for the region of Southeast Europe should be discussed following the launch 
of market opening.  

Georgia  is  not  directly  interconnected  with  EU  Member  States.  Its  electricity  network  is 
synchronised with Russia’s and Azerbaijan’s electricity grids. Electricity is either exported or 
imported from its neighbours, including Türkiye, depending on the season. 

In the gas sector, Georgia concludes supply contracts bilaterally for the long term. The natural 
gas  market  concept  includes  the  establishment  of  a  natural  gas  exchange  and  an  over-the-
counter  auction  platform.  The  Georgian  gas  exchange  was  established  but  is  not  yet 
operational. The gas market is characterised by a high level of concentration. Gas-fired thermal 
power plants operate with gas received from Azerbaijan. Georgia already aligned its legislation 
with the Regulation on wholesale energy market integrity and transparency. 

The country hosts important gas and oil pipelines for the Southern Gas Corridor. It is dependent 
on gas imports from Azerbaijan and Russia, though at a marginal level from the latter. Georgia 
needs  to  implement  the  security  of  gas  supply  regulation.  Gas  cross-border  interconnection 
points are nearing their maximum physical operating capacities. Georgia does not possess gas 
storage, which poses some risks during high-demand peak days. 

In the area of  renewable energy, the Law on promotion  of generation and consumption of 
energy from renewable sources needs to be aligned with the Renewable Energy Directive. The 
revision  is  in  its  final  stages.  A  new  market-based  support  scheme  for  renewable  energy 
production was introduced in December 2022, envisaging auctions for a total installed capacity 
of  up  to  1 500  MW.  The  first  auction  announced  in  February  2023  has  been  completed. 
Provisions related to the sustainability of biofuels are pending.  

On energy efficiency, Georgia is aligned with the Directives on energy labelling and the energy 
performance in buildings. Fifteen energy efficiency bylaws were adopted in 2022 and 2023. 
The  remainder  of  implementing  legislation  is  still  to  be  adopted.  On  energy  labelling,  the 
adoption of eleven product regulations is pending, in addition to three that are already adopted. 
An advanced draft  of the long-term building renovation strategy has already been developed. 

On nuclear energy, nuclear safety and radiation protection, Georgia has no nuclear power 
sites  on  its  territory.  Georgia  is  a  party  to  international  conventions  concluded  under  the 
auspices of the International Atomic Energy Agency, except for the Convention on Nuclear 
Safety.  Georgia has developed a national  strategy for radioactive waste management taking 
into consideration provisions under the Directive on radioactive waste. Georgia has adopted 
the  Law  of  Georgia  on  radiation  protection,  nuclear  safety  and  security  on  15  June  2023. 
Georgia  still  has  to  fully  align  with  and  implement  the  Directives  on  nuclear  safety;  the 
management  of  spent  fuel  and  nuclear  waste;  basic  safety  standards  and  drinking  water. 
Georgia still also has to consider accession to the Convention on Nuclear Safety. 

97 

 
 
On nuclear safeguards, upon accession, the existing systems of accountancy and control of 
nuclear  materials  in  Georgia  would  need  to  be  adapted  to  accommodate  for  the  safeguards 
provisions  (Chapter  7)  of  the  Euratom  Treaty.  This  means  that  state  and  operators  systems 
would need to  incorporate reporting obligations to  the Commission  and allow for access  to 
nuclear materials and installations by Commission Inspectors.  

Georgia would also have to accede to the existing safeguards agreement (INFCIRC/193 and its 
Additional  Protocol)  between  the  Euratom  Non-nuclear  Weapon  States,  the  Euratom 
Community  and  the  International  Atomic  Energy  Agency  (IAEA).  Georgia’s  own  existing 
comprehensive safeguards agreement with the IAEA would be suspended. 

Chapter 21 - Trans-European networks   

transport, 
The  EU  promotes 
telecommunications and energy to strengthen the internal market and contribute to growth and 
employment. 

trans-European  networks 

the  areas  of 

(TENs) 

in 

Georgia has some level of preparation in trans-European networks. There was some progress 
in the reporting period, notably with the adoption of the 2023-2030 National Transport and 
Logistics Strategy and the actual implementation of TEN-T projects (e.g East-West Highway). 
The legislative framework needs to be aligned with the trans-European networks for transport 
and  trans-European  networks  for  energy  regulations  to  implement  transport  and  energy 
projects.  Transport  and  energy 
insufficiently  developed.  The 
implementation of connectivity reform measures in Georgia is slow. 

infrastructures  are 

In the coming year, Georgia should: 

→  improve the performance of the rail and road networks in terms of quality, capacity and 

safety; 

→  align with the Regulation on guidelines for trans-European energy infrastructure. 

The Trans-European Transport Networks (TEN-T) were extended to the Eastern Partnership, 
including Georgia. The extension to Georgia identifies core and comprehensive networks. An 
indicative  trans-European  transport  networks  investment  action  plan  for  the  Eastern 
Partnership was jointly prepared by the World Bank and the European Commission. The action 
plan supports key investments priorities with EUR 3.4 billion for all modes of transport on the 
extended core network. Its deadline is in 2030.  

Developing transport infrastructure is listed in key strategic documents, such as the 2021-2024 
Towards Building a European State programme and the recently adopted 2023-2030 National 
Transport and Logistics Strategy.  

An  amendment  to  the  TEN-T  map  was  formalised  through  the  signature  of  the  High-Level 
Understanding  between  the  EU  and  Georgia  on  the  adaptation  of  the  indicative  TEN-T  in 
March  2023  and  added  a  new  core  road  alignment  in  Algheti-Sadakhlo.  The  Georgian 
indicative  network  consists  of  751 km  of  railways  (out  of  which  599 km  are  on  the  core 
network), 856 km of motorways (out of which 795 km are on the core network), three ports 
(one of which is core) and one core airport. Georgia has yet to inform if transport infrastructure 
meets TEN-T infrastructure requirements. 

The limited capacity of existing international state roads are the main bottlenecks reducing the 
performance  of  the  core  motorway  network.  The  road  infrastructure  is  generally  of  a  poor 
standard, in terms of safety, capacity and quality. 

Concerning railways, authorities are addressing bottlenecks that have been have identified on 

98 

 
 
the core network via the railway modernisation project. The works are expected to be finalised 
by the end of 2023. The rail network infrastructure and rolling stock are often obsolete with 
respect to quality, capacity and safety standards. The Baku-Tbilisi-Kars railway line is another 
major railway project, which is 85% completed.  

Alignment with the Regulation on guidelines for the trans-European energy infrastructure 
–  TEN-E  Regulation  –  as  adapted  and  adopted  by  the  Ministerial  Council  of  the  Energy 
Community is required. The project application was selected in the list of projects to potentially 
be  included  in  the  2022  European  Network  of  Transmission  System  Operators  ten-year 
electricity network development plan. Replacing the dead-end gas supply system with a highly 
secure circular-type system of loops and interconnectors is the objective of the 2021-2030 ten-
year natural gas transmission network development plan. 

Challenges to the gas transmission network include: the difficulty or even impossibility of the 
existing  transmission  system  or  contractual  limitations  to  balance  hourly  consumption 
disparity;  non-backed-up  cross-border  pipelines;  and  suspended  construction  of  natural  gas 
storage. The non-back up of interconnection lines; the radial/inadequately backed-up network 
of western Georgia; the dead end (mainly 220 kV) transmission lines both in the western and 
eastern part of the power transmission system; and exploring alternative solutions to ease the 
impacts  of cross border  infrastructure constraints are the main  challenges for the electricity 
transmission network. 

A  derogation  from  cross-border  cooperation  rules  applies  until  Georgia  has  a  physical 
interconnection with the EU or the Energy Community electricity markets. At this stage, there 
is only a bilateral cross-border capacity allocation on the interconnectors with Türkiye. Rules 
for the management of cross-border electricity flows and capacity allocation were drafted as 
part  of  the  transmission  grid  code.  No  agreements  with  neighbouring  transmission  system 
operators  and  the  development  of  the  framework  for  market-based  mechanisms  for  cross-
border exchange are yet signed. 

Chapter 27 - Environment and climate change  

The  EU  promotes  strong  climate  action,  sustainable  development  and  protection  of  the 
environment. EU rules contain provisions addressing climate change, water and air quality, 
waste  management,  nature  protection,  industrial  pollution,  chemicals,  noise  and  civil 
protection. 

Georgia is at an early stage of preparation in the field of environment and climate change. 
There was some progress in the reporting period, notably with the adoption of a long-term low 
emission development strategy and with the improvement of the capacity of its civil protection 
and disaster risk management system. The gaps in the level of alignment with policy ambition 
and legal obligations in sectors covered under this chapter remain wide. Climate neutrality by 
2050  was  established  as  a  policy  target.  Moving  more  vigorously  towards  a  low-emission, 
resilient, green economy needs increased political attention, as well as a whole-of-government 
and whole-of-the-economy approach. Georgia continued to strengthen its civil protection and 
disaster risk management system. 

In the coming year, Georgia should: 

→  strengthen administrative and inspection capacities in the environment and climate sector 

and implement structural reforms; 

→  align with the EU water acquis;  

→  implement commitments under the Energy Community’s Decarbonisation Roadmap and 

99 

 
 
urgently  prepare  for  the  Emissions  Trading  System  (ETS)  in  line  with  the  Energy 
Community  recommendation,  notably  on  the  Monitoring,  Reporting  and  Verification  of 
emissions; 

→  adopt a climate law in order to enhance the level of ambition of Georgia on climate change 

mitigation and adaptation and ensure consistent, timely implementation. 

Environment  

Georgia has some level of alignment with EU horizontal legislation. The country is party to 
the  Aarhus  Convention  and  follows  some  of  its  provisions  on  access  to  environmental 
information and justice. Several IT portals help to ensure a certain degree of public access to 
insufficient,  fragmented  and  cumbersome. 
environmental 
Environmental policy implementation and enforcement represent a challenge, notably due 
to  limited  administrative  capacity.  Various  aspects  of  Georgia’s  environmental  compliance 
assurance system must improve to tackle the high level of environmental non-compliance in 
the country. 

information.  This  remains 

Although Georgia’s legislation on environmental impact assessments is in place, it still needs 
to be further developed and effectively implemented. This includes transboundary cooperation 
given  that  Georgia  is  not  a  party  to  the  Espoo  Convention.  The  country  signed  but  has  not 
ratified  the  protocol  on  strategic  environmental  assessment.  Overall,  there  are  significant 
capacity constraints in implementing, monitoring and enforcing the Environmental Assessment 
Code. 

The Law on environmental liability establishes financial liability for environmental damage 
and  a  requirement  to  remediate  environmental  damage.  While  being  a  step  in  the  right 
direction, the Law is not fully in line with the EU Environmental Liability Directive as concerns 
its scope and definitions. Four resolutions necessary for the implementation of the Law were 
adopted during the reporting period.  

On air quality, Georgia is partially aligned with the EU acquis. Air quality standards were 
established for all pollutants covered by the Directives on ambient air quality. Exceedances are 
recorded,  notably  those  concerning  particulate  matter  in  major  cities.  The  air  quality 
monitoring system is partially aligned with EU standards and an air quality index website is 
accessible.  The  Central  Zone  Air  Quality  Plan  was  approved  in  July  2023.  Since  2021, 
continuous monitoring of air emissions applies to 94 large stationary facilities but only about 
a fifth of them report information to an electronic system established to this end. An air quality 
monitoring plan for Rustavi has been prepared. Significant gaps still exist regarding alignment 
with the Directive on national emission reduction commitments, but progress is made notably 
on  emission  projections  and  inventories.  The  technical  regulation  determining  the  emission 
standards for vehicles was approved in June 2023. The regulatory framework was amended in 
order to ban the export of catalyst converters for three years. Georgia is party to the United 
Nations Economic Commission for Europe Air Convention but not yet to any of the latest three 
protocols. 

Georgia is at an early stage of alignment with EU noise legislation. Preparation of the strategic 
noise maps and action plans needs to start. 

Georgia’s alignment with the EU waste management and circular economy legislation is at 
an early stage. Alignment with the revised Waste Framework Directive, and all relevant waste 
streams legislation needs to be further consolidated. This includes adopting national legislation 
in line with the EU sewage sludge and ship recycling rules. Significant investments are needed 
to modernise the waste management system and put in place waste collection and treatment 

100 

 
 
infrastructure,  especially  at  municipal  level.  The  2013-2030  national  waste  management 
strategy was amended in August 2022, incorporating modified targets and addressing the issues 
of  bio-degradable  and  hazardous  waste.  A  new  structural  unit  for  industrial  emissions  and 
waste  control  services  was  established  in  April  2023,  as  part  of  the  Department  for 
Environmental Supervision. 

In the  area of  water quality, the level  of  alignment is  limited. A new  water  Law has been 
adopted in June 2023. A Georgian water information system has been developed. Identification 
of nitrate vulnerable zones and an assessment of the need to upgrade the existing surface and 
groundwater  monitoring  networks  are  currently  conducted.  The  legal  framework  for  the 
protection of marine environment is included within the fourth national environmental action 
programme  adopted  in  2022.  The  country  conducts  hydrobiological  monitoring  of  coastal 
waters of the Black Sea.  

There is good alignment on nature protection, notably through compliance with some of the 
obligations  under  the  Bern  Convention.  Georgia’s  current  emerald  network  presents  a 
sufficiency rate to achieve the network objectives by only 30% despite the relatively constant 
progress. Georgia needs to update its national biodiversity strategy and action plan. A dedicated 
biological diversity Law is being developed. A biodiversity monitoring system and a strategy 
for  invasive  alien  species  need  to  be  developed.    Georgia  should  strengthen  administrative 
capacities  and  increased  dedicated  financial  resources.  A  new  national  forest  programme 
process  was  approved  in  April  2023,  which  will  further  enhance  discussion  in  the  forestry 
sector. 

Regarding the EU acquis on industrial pollution control and risk management, compliance 
with  the  EU’s  industrial  emissions  legislation  require  significant  legislative  work  and 
investments.    Further  legislative  alignment  with  the  EU  industrial  accidents  acquis  is  also 
necessary.  A  single  national  pollutant  release  and  transfer  register  that  gathers  the  various 
information in one place does not yet exist in the country. Public authorities view the existing 
electronic  systems  for  air  emissions  reporting  and  water  reporting,  as  well  as  the  waste 
reporting system that is under development, as steps towards having a national pollutant release 
and transfer register. Georgia is a signatory of the Protocol on pollutant release and transfer 
registers to the Aarhus Convention and plans to eventually ratify it. Work in this area needs to 
be accelerated and guided by the European Regulation on pollutant release and transfer register.  

As  for  chemicals  management,  to  implement  the  Stockholm  Convention  on  Persistent 
Organic  Pollutants,  the  polychlorinated  biphenyls  inventory  of  equipment  in  the  electricity 
supply sector was carried out and a database was developed. Rules and safety norms for the 
management of equipment and oils containing polychlorinated biphenyls and their waste were 
adopted in December 2022. The level of transposition of the chemicals acquis is limited and 
important  provisions  are  missing.  The  Parliament  ratified  the  Minamata  Convention  on 
Mercury in May 2023. Significant efforts are needed to enforce and implement the chemicals 
legislation, considering the complex tasks under this sector.  

Georgia  made  progress  in  building  the  capacity  of  its  civil  protection  and  disaster  risk 
management system at central and local levels. It has a 24/7 operational duty service, which 
cooperates with the European Commission’s Emergency Response Coordination Centre. Roles 
and responsibilities of different actors involved in disaster risk management are clearly defined 
and, together with the establishment of the Training Division, the basic training programme 
has been upgraded. Emergency management plans have been developed at a local level in six 
municipalities.  The  overall  strategy  for  the  development  and  modernisation  of  its  civil 
protection system should be developed focusing on preparedness and prevention measures. In 
this regard, the early warning systems of Georgia could be further strengthened.  

101 

 
 
Climate change 

Georgia is at an early stage of preparation and made some progress over the reporting period 
on the climate change acquis, including its obligations under the Energy Community Treaty. 
A long-term low emission development strategy was adopted on 24 April 2023 with a climate 
neutrality target in 2050. Georgia submitted an updated Nationally Determined Contribution 
under the Paris Agreement in May 2021 including an unconditional 35% emission reduction 
target by 2030 compared to 1990 and a conditional 50-57% target; it adopted a 2030 climate 
change strategy and a 2021-2023 action plan. Georgia has no climate change law yet. 

Georgia has currently only a basic national system for monitoring and reporting of greenhouse 
gas emissions. Georgia prepares its greenhouse gas inventory biennially. Considerable efforts 
are needed to align Georgia with relevant EU legislation in that respect, notably in the context 
of the Energy Community. 

Consistently with the Energy Community’s Decarbonisation Roadmap, Georgia needs to roll 
out a robust MRV system for as a preliminary step to carbon pricing. Georgia needs to take the 
necessary steps to set up a mechanism for emission trading to stimulate industrial and energy 
decarbonisation  and  to  appropriately  prepare  for  the  introduction  of  the  EU  Carbon  Border 
Adjustment Mechanism.  

Georgia did not align with the Directive establishing a scheme for greenhouse gas emission 
allowance trading and needs to urgently step up the introduction of an emission trading system.  

Regarding emissions from transport Georgia has not implemented CO2 performance standards 
for  new  vehicles,  nor  has  it  enacted  measures  to  promote  monitoring  and  availability  of 
consumer information on fuel economy and CO2 emissions in respect of the marketing of new 
cars. Concerning fuel quality, legislation is in place and the quality of petrol and diesel meets 
the Euro 5 standard. The country participates in the European Civil Aviation Conference and 
volunteered to participate in the global carbon offsetting and reduction scheme for international 
aviation. 

Georgia is a party to the Montreal Protocol on substances that deplete the ozone layer. The 
parliament ratified the Kigali amendment to the Montreal Protocol in June 2023. Georgia is not 
fully aligned with the current versions of the Regulation on ozone depleting substances or the 
Regulation on fluorinated greenhouse gasses. Some efforts have been made to align with the 
basic elements of previous versions of those regulations.  

Georgia has not developed relevant national legislation in line with the Directive on carbon 
capture and storage.  

Georgia established a climate change council at ministerial level to ensure better coordination; 
However,  the  country  still  lacks  a  consistent  whole-of-government  approach  systematically 
mainstreaming  climate  considerations  into  policy-making.  Administrative  capacity  remains 
weak in terms of both human and financial resources and needs to be urgently enhanced. 

Over the reporting period, major pieces of EU climate legislation were updated in order for the 
EU to cut emissions by at least 55% by 2030 compared to 1990, starting with the EU ETS 
Directive. Georgia should take this revision into account and align its own legislation. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION  

Cluster  5  on  resources,  agriculture  and  cohesion  covers:  agriculture  and  rural  development 
(chapter  11);  food  safety,  veterinary  and  phytosanitary  policy  (chapter  12);  fisheries  and 
aquaculture (chapter 13); regional policy and coordination of structural instruments (chapter 
22); financial and budgetary provisions (chapter 33).  

102 

 
 
Georgia is at an early stage of preparation in the chapters agriculture and rural development, 
financial and budgetary provisions. Georgia is in between an early stage and  some level of 
preparation regarding regional policy and coordination of structural instruments. It has some 
level  of  preparation  in  food  safety,  veterinary  and  phytosanitary  policy  and  fisheries  and 
aquaculture. Some progress was made in regional policy and limited progress in agriculture 
and  rural  development  with  the  amendment  of  the  Law  on  agricultural  cooperatives.  No 
progress was registered in fisheries and aquaculture and on financial and budgetary provisions. 
Additional  efforts  are  needed  to  increase  human  and  administrative  capacity  in  the  field  of 
fisheries and aquaculture. It is also important to adopt the new regional development strategy 
and consider expanding the coverage to the whole country.  

Chapter 11 - Agriculture and rural development  

The EU’s common agricultural policy supports farmers and ensures Europe’s food security. It 
helps tackle climate change and the sustainable management of national resources; maintains 
rural areas and landscapes across the EU; and keeps the rural economy alive by promoting 
jobs in farming, agri-food industries and associated sectors. This requires strong management 
and control systems. There are also common EU rules for marketing standards, quality policy 
and organic farming.  

Georgia is at an early stage of preparation in the area of agriculture and rural development. 
Limited progress was made in the reporting period, such as on the amendment of the Law on 
agricultural cooperatives. Georgia will need to fully align with the EU’s acquis in the area of 
agriculture and rural development, and establish the structures, systems and the administrative 
capacity to be able to implement and enforce it effectively. 

In the coming year, Georgia should: 

→  progress on aligning the legal framework with the EU acquis in the field of agriculture and 

rural development; 

→  continue efforts towards a full-scale land parcel identification system layer for the entire 

country and create a plan; 

→  the setting-up of an integrated administration and control system in line with the EU acquis; 

→  start the creation of a farm accountancy data network (FADN) or similar system monitoring 

farm income activities; 

→  review the resolution on organic production to align it with the EU’s new regulation on 

organic production, in force since January 2022. 

On horizontal issues, Georgia’s policy in this area is governed by the 2021-2027 strategy for 
agriculture and rural development and an action plan for its implementation. The Ministry of 
Environmental  Protection  and  Agriculture  (MEPA)  is  responsible  for  agriculture  and  rural 
development policy formulation. Within the food and rural development department of MEPA, 
two sectoral departments were created in 2023.  

An integrated administration and control system (IACS) in line with the EU acquis will need 
to be established. A land parcel identification system (LPIS) software is in place at the National 
Wine  Agency,  but  progress  is  needed  towards  a  full-scale  LPIS  for  the  entire  country. 
Amendments to the Law on wine were adopted in June 2023 envisaging the production of a 
single cadastre of vineyards by the National Wine Agency. 

A  National  Pasturelands  Management  Policy  document  was  adopted  focusing  on  the 
prevention  of  land  degradation,  biodiversity  conservation  of  pasture  lands,  improvement  of 

103 

 
 
their productivity and promotion of sustainable development of livestock production. There is 
no  farm  accountancy  data  network  (FADN)  or  similar  system  monitoring  farm  income 
activities.  A  farm  advisory  system  operates  under  the  Rural  Development  Agency  (RDA) 
providing information at centres across the country on RDA programmes and projects. 

On Common market organisation (CMO), alignment with the EU acquis remains limited 
mostly related to certain marketing standards where Georgia should make efforts to fully align 
with EU acquis. The Law on agricultural cooperatives was amended in December 2022 with 
the ambition to modernise and align it with the EU acquis. A vineyard register is in place with 
more  than  80%  of  the  vineyards  registered  based  on  orthophoto  maps  design  by  global 
positioning system (GPS) technology and the declaration of grape growers. 

On  rural  development,  the  2021-2027  agriculture  and  rural  development  strategy  with  its 
2021-2023 action plan constitutes Georgia’s policy framework. An inter-agency coordination 
council,  including  relevant  stakeholders,  coordinate  and  closely  monitor  the  strategy’s 
implementation.  Funding  is  provided  through  the  agriculture  budget.  No  progress  on 
approximation was registered.  

As regards quality policy, Georgia has legislation regulating the registration, protection and 
use of protected designations of origin and geographical indications.  

Legislation in the area of organic farming, needs to be further aligned with the EU’s acquis.  

Chapter 12 - Food safety, veterinary and phytosanitary policy  

EU hygiene rules for foodstuff production ensure a high level of food safety. Animal health and 
welfare and the safety of food of animal origin are safeguarded together with the quality of 
seeds,  plant  protection  material,  the  protection  against  harmful  organisms  and  animal 
nutrition. 

Georgia has some level of preparation in the area of food safety, veterinary and phytosanitary 
policy. There was some progress made over the reporting period, by signing an amendment to 
Annex XI-B of the Association and Deep and Comprehensive Free Trade agreement. There is 
a  risk  of  a  widening  gap  between  legal  approximation  and  effective  implementation.  A 
comprehensive food safety implementing strategy, review of policy and institutional reforms 
needs  to  be  carried  out.  There  are  significant  delays  in  effective  implementation  of  new 
legislation, weakening some of them and leading to reduction in controls. 

In the coming year, Georgia should in particular: 

→  further align legislation with the EU acquis; 

→  enhance  implementation  of  aligned  legislation  by  regional  and  local  services  as  well  as 

industries concerned; 

→  strengthen surveillance capacity and diagnostic resources. 

In the area of general food safety, food safety rules and specific rules for feed, Georgian 
producers have not obtained yet authorisation for the export to the EU of queen bees and fishery 
products  from  aquaculture.  Budgetary  allocations  have  not  increased  since  2020.  They  are 
insufficient  to  effectively  implement  some elements  of the new legislative framework or to 
provide  the  required  support  to  food  business  operators.  Meeting  the  EU  requirements  for 
hazelnuts remains difficult for Georgia. The EU maintains a high level of regulated imports 
controls to detect contaminations with aflatoxins. 

In March 2023, Georgia and the EU signed an amendment to Annex XI-B of the Association 
and Deep and Comprehensive Free Trade agreements, according to the Council Decision (EU) 
104 

 
 
2023/187 of 23 January 2023.  

Legislation and organisation of the Georgian control system is partially in line with EU acquis. 
National legislation and implementing rules for export to the EU are generally in line with EU 
requirements.  Due  to  ineffectiveness  of  the  surveillance  system  and  lack  of  diagnostic 
resources, the competent authorities cannot yet deliver the full necessary level of assurances. 

Alignment on veterinary policy has not yet been achieved on animal welfare, notably during 
transport  and  slaughter.  Georgia  continued  to  carry  out  activities  to  control,  prevent  and 
eradicate  communicable  animal  diseases  in  line  with  the  ‘One  Health’  approach.  National 
legislation to align with the acquis on crisis management has not yet been achieved. Georgia’s 
state laboratory of agriculture oversees  food safety,  veterinary  and phytosanitary inspection 
activities. Its main responsibilities are laboratory testing. The laboratory has been accredited 
according  to  ISO  IEC  17025.  The  laboratory  network  operates  countrywide.  Residue 
monitoring is being carried out. Georgia has established the rapid alert system for food and 
feed and has a national contact point of communication with the relevant team in the EU. 

As regards placing on the market of food, feed and animal by-products, the National Food 
Agency  continued  to  carry  official  checks.  Business  operators  producing,  processing  and 
distributing food of animal origin are not yet registered in the registry of economic activities. 
Laboratory  testing  of  samples  taken  within  the  scope  of  official  controls  is  performed  at 
laboratories  accredited  in  accordance  with  the  ISO  17025  standard.  Georgia’s  in-country 
laboratory testing  capacity  does not  yet  correspond to  the EU acquis on either sanitary  and 
phytosanitary or food safety. Some operational issues persist as regards EU’s trade control and 
export  system,  notably  on  issuing  electronic  certificates.  Georgia  is  now  able  to  add  new 
establishments, as well as apply for amendments through the system.  

On phytosanitary policy, considerable implementing legislation to align with the EU acquis 
is in place. Economic operators with relevance in the field of plant health are not yet registered 
in  the  register  of  economic  activities.  National  legislation  on  maximum  residue  levels  of 
pesticides in  or on food and feed of plant and animal  origin is not  yet aligned with  the EU 
acquis. 

As  regards  genetically  modified  organisms,  legislation  is  in  place  to  regulate  their  use  in 
closed  systems;  cross-border  movement;  traceability;  labelling;  marketing;  safety  and 
packaging.  

Chapter 13 - Fisheries and aquaculture 

The  common  fisheries  policy  lays  down  rules  on  fisheries  management,  protects  living 
resources  of  the  sea  and  limits  the  environmental  impact  of  fisheries.  This  includes  setting 
catch quotas, managing fleet capacity, rules on control and inspection, rules on markets and 
aquaculture  and  support  for  fisheries  and  coastal  communities.  Further,  it  promotes  a 
sustainable aquaculture. 

Georgia has some level of preparation in this chapter. There was no progress made in the 
reporting period. Georgia lacks a standardised fisheries policy and effective implementation 
across the country in line with the EU acquis. Focus should be on improving administrative 
structures, including the establishment of a managing authority. 

In the coming year, Georgia should particularly: 

→  continue aligning its legislation with the EU’s common fisheries policy and fisheries and 

aquaculture acquis; 

→  increase its human and administrative capacity in the field of fisheries and aquaculture;  
105 

 
 
→  become  a  fully-fledged  member  of  the  General  Fisheries  Commission  for  the 

Mediterranean.  

Georgia has adopted legislation to manage fisheries and aquaculture in line with the principles 
of the common fisheries policy. Georgian legislation effectively defines the basic requirements 
such as the obligation of the flag state, coastal state, port state and market state. The number of 
marine fishing vessels was indicated by Georgia as 32 in 2022. These vessels are only active 
in national waters.  

Sea fishing production was 53 53 500 tonnes in 2022 (declined from 89 600 tonnes in 2019). 
Aquaculture production in 2019 reached almost 2 500 tonnes, exceeding the production in 2017 
by 20 percent. 

Georgia manages the fisheries resources based on scientific advice and on the collection of 
data. The data collection framework needs to be strengthened. Georgia should invest efforts in 
reducing by-catch of sensitive species and promote the use of selective gear. There is active 
and constructive cooperation in the framework of the bilateral EU-Georgia dialogue in the fight 
against illegal, unreported and unregulated fishing. A proper level of implementation has yet 
to be achieved. A fleet management system is in place. A fishing vessel register and regime 
are lacking. 

Some  limited  elements  of  an  inspection  and  control  system  have  been  developed  but  an 
overall  approach  to  checks  and  inspection  is  needed.  Georgia  has  no  specific  structural 
actions  for  fisheries.  A  limited  number  of  state  aid  measures  exist  applicable  to  fishing, 
including a specific credit programme with low interest rates. 

Concerning  market  policy,  general  standards  on  hygiene  for  food  and  products  of  animal 
origin are in place. Product information is provided to consumers, such as ingredients, weight, 
and shelf life. Georgia needs to align specific provisions on fishery and aquaculture products 
put on the market with the EU Common Market Organisation Regulation. Legal Framework 
of recognition of professional organisations, such as producer or inter-branch organisations are 
not in place. 

Regarding international agreements, Georgia cooperates on marine fisheries with the General 
Fisheries  Commission  for  the  Mediterranean  as  the  relevant  regional  fishery  management 
organisation. It is strongly encouraged that Georgia becomes a full member.  The country has 
to invest efforts in reducing by catch of sensitive species and promote the use of selective gear. 
Georgia has a bilateral agreement on fish farming with Ukraine. 

Georgia  participates  in  the  Common  Maritime  Agenda,  the  EU  sea-basin  strategy  for  the 
development  of  a  sustainable  blue  economy  in  the  Black  Sea.  It  is  quite  active  in  the 
implementation of its priorities, with a positive commitment both at the national and grassroots 
level. Georgia is encouraged to continue its positive regional cooperation under the Common 
Maritime  Agenda  with  the  other  participating  countries  and  to  lead  work  on  areas  that  are 
considered important for the country. 

Chapter 22 - Regional policy and coordination of structural instruments  

Regional  policy  is  the  EU’s  main  tool  for  reducing  regional  disparities  and  investing  in 
sustainable  and  inclusive  socio-economic  growth.  It  is  operating  through  “shared 
management”  between  the  Commission  and  EU  Member  States.  The  implementation  of 
cohesion policy programmes requires appropriate administrative capacity on programme and 
project level, the establishment of systems of sound financial management and control and also 
the  fulfilment  of  other  EU  acquis  elements  such  as  environmental  or  public  procurement 
legislation.   

106 

 
 
Georgia is in between an early stage and some level of preparation in the area of regional 
policy and some progress was made with the adoption of the intermediate harmonisation plan 
to align with the EU statistical system. The legislative framework on regional policy should be 
further aligned with the EU acquis to implement this policy effectively. The country needs to 
strengthen  its  administrative  capacity  in  programming,  implementing,  monitoring  and 
evaluating  EU  funds,  while  building  on  the  experience  from  the  European  Neighbourhood 
Instrument (ENI) cross-border cooperation (CBC) and Interreg NEXT programmes. Regional 
development  and  cohesion  remain  important  challenges.  Efficient  coordination  is  needed 
among the levels of government on preparing and implementing relevant sector strategic and 
planning documents. Strengthened capacity is needed to identify and target regional disparities 
and  plan  interventions  (in  terms  of  programmes  and  projects)  in  line  with  the  EU  practice 
(programming cohesion funds). 

In the coming year, Georgia should in particular: 

→  build on its experience with EU shared management through involvement in ENI CBC and 

Interreg NEXT programmes; 

→  use positive outcomes of the pilot regional development programme (PIRDP 2019-2022) 
in  the  new  state  programme  targeting  territorial  development  and  increase  coverage  to 
potentially  the  whole  country  (excluding  large  urban  centres  Tbilisi  and  Batumi)  and 
deepening the competitive project selection procedure. 

The legislative framework remained broadly unchanged. A number of initiatives related to 
transferring  certain  types  of  property  to  local  authorities  and  fostering  inter-municipal 
cooperation were adopted during the reporting period. Those changes cleared administrative 
bottlenecks and facilitated the successful implementation of regional policy programmes.    

On the institutional framework, at national level, the Ministry of Regional Development and 
Infrastructure  oversees  regional  development  policy  planning  and  coordination.  In  2022, 
municipalities were equipped with six new devolved powers in the fields of education; child 
protection; social protection; natural resources management; and environmental protection to 
increase the role of municipalities in managing a substantial share of public affairs. As of 2023, 
a minimum guaranteed amount under VAT has been introduced for municipalities with smaller 
revenues to further strengthen their financial independence and complement the equalisation 
concept.  

Georgia has number of regional policy strategies and programmes that aim to align with EU 
cohesion  policy principles, including  the 2019-2022 pilot  regional  development  programme 
and 2019-2023 strategy for development of Georgia’s mountain settlements. The first phase of 
the  programme  covered  four  regions13  and  was  implemented  according  to  the  participatory 
model of multilevel governance used under the EU cohesion policy.  

The regulation regarding the distribution of funds for projects to be implemented in the regions 
of Georgia – which is one of the tools to tackle disparities within the country – was amended 
in  2022.  The  regulation  introduces  competition  between  municipalities  based  on  their 
performance. 

Georgia has gained experience with EU shared management through its participation in the 
2014-2020 European neighbourhood instrument cross-border cooperation programme for the 
Black Sea basin.  It  also  actively  participates in  its successor the  Interreg  NEXT 2021-2027 
Black Sea programme that is fully in line with EU cohesion policy principles. 

13 Kakheti, Imereti, Guria, Racha-Lechkhumi and Kvemo Svaneti 

107 

 
 
 
Georgia  started  piloting  smart  specialisation  in  the  Imereti  region  with  the  support  of  the 
European  Commission’s  Joint  Research  Centre.  The  entrepreneurial  discovery  process  was 
implemented  in  2022,  which  followed  a  framework  methodology  agreed  with  the 
Commission’s Joint Research Centre.  

Monitoring  data  is  collected  according  to  the  methodology  approved  by  the  government 
commission  on  regional  development.  The  annual  monitoring  reports  present  financial  and 
physical progress and the achievement of outputs. The annual budget allocations, as well as 
actual expenditures are included in the monitoring data that is collected.  

Evaluations of the programmes are performed on an ad hoc basis and are mostly conducted 
by external experts, with support from international partners. 

The nomenclature of territorial units for statistics methodology is not yet applied in Georgia. 
The intermediate harmonisation plan that aims to align Georgia’s statistical system with the 
European  system  was  consolidated  and  adopted  in  early  2023,  paving  the  way  for  further 
integration in the EU system and practices.  

On financial management, control and audit, the financial framework doesn’t allow budget 
flexibility in terms of carryover to the next year’s budget. There are good examples of EU-
funded programmes that involve co-funding from the State. These include the pilot integrated 
regional development programme, as well as EU direct grants provided to municipalities under 
'Mayors for Economic Growth’, ‘Covenants of Mayors’ and ‘Civil Society Organisations and 
Local Authorities’ instruments. 

The  financial  management  and  control  system  for  EU  funds  in  place  is  entrusted  to  the 
authorities. The internal financial control system (as described in chapter 32) remains weak.  

Internal audits are established in (i) line ministries and autonomous republics, (ii) legal entities 
of  public  law  and  state-owned  enterprises,  (iii)  local  administrations.  External  audit  is 
performed by the State Audit Office which is part of the group of auditors for the ENI CBC 
and Interreg programmes. The office has a commitment to audit each municipality every three 
years. There were no developments in the reporting period.  

Chapter 33 - Financial and budgetary provisions  

This chapter covers the rules governing the funding of the EU budget (‘own resources’). These 
resources  mainly  consist  of:  (i)  contributions  based  on  the  gross  national  income  of  each 
Member State; (ii) customs duties; (iii) the non-recycled plastic resource and (iv) a resource 
based  on  value-added  tax.  EU  Member  States  must  have  the  appropriate  administrative 
capacity to adequately coordinate and ensure the correct calculation, collection, payment and 
control of own resources. 

In  the  area  of  own  resources  Georgia  is  at  an  early  stage  of  preparation.  There  was  no 
progress made. The basic principles and institutions for the underlying policy areas are in place 
and functioning but need further alignment with the EU acquis. The country should focus on 
aligning with the accounting standards of the 2010 European System of Accounts. It should 
also focus on setting up a coordinating body to implement the own resources’ administrative 
conditions. 

In the coming year, Georgia should: 

→  further align its 2019 Law on customs with the Union Customs Code; 

→  strengthen the operational capacity of the revenue service; 

→  align with the accounting standards of the 2010 European System of Accounts.  

108 

 
 
As regards traditional own resources, Georgia has structures in place to levy customs duties 
at the point of import. It operates a national VAT system. VAT legislation is partially aligned 
with the EU acquis. Some provisions still need to be standardised. Georgia needs to further 
align its 2019 Law on customs with the Union Customs Code.  

The mid-term revenue strategy 2021-2024 sets out three strategic priorities: improved tax and 
customs legislation; institutional development; and international cooperation.  

Georgia will need to continue to work on establishing the relevant institutions involved in the 
own resources system, an own resource coordination body and implementing rules. 

As  regards  administrative  infrastructure,  the  Ministry  of  Finance  has  the  overall 
responsibility  for  financial  and  budgetary  issues.  The  revenue  service,  in  charge  of  tax  and 
customs  issues,  is  a  legal  entity  of  public  law  under  the  Ministry  of  Finance.  The  revenue 
service needs to strengthen its operational capacity and computerise its key business processes. 

National  accounts  and  gross  national  income  are  computed  but  they  are  based  on  the 
definitions and accounting rules of the 2008 United Nations System of National Accounts and 
not on the 2010 European System of Accounts standards. There has been no work to switch to 
the European system or to collect national data. 

CLUSTER 6: EXTERNAL RELATIONS  

There  are  two  chapters  in  this  cluster:  external  relations  (Chapter  30);  foreign,  security  & 
defence  policy  (Chapter  31).  Georgia  is  moderately  prepared  and  made  limited  progress  in 
both.  

Chapter 30 - External relations 

The EU has a common commercial policy towards third countries, based on multilateral and 
bilateral  agreements  and  autonomous  measures.  There  are  also  EU  rules  in  the  field  of 
humanitarian aid and development policy. 

Georgia is moderately prepared in the area of external relations. There was limited progress 
made.  Some  measures  were  taken  to  improve  the  investment  climate  Georgia  has  good 
administrative  capacity  to  manage  commitments  in  external  commercial  relations,  and  as  a 
World Trade Organization member, is already following a large part of the main multilateral 
trade agreements that the EU also follows.  

In the coming year, Georgia should, in particular: 

→  align the relevant legislation with the EU acquis on trade in certain goods that could be 
used  for  capital  punishment,  torture  or  other  cruel,  inhuman  or  degrading  treatment  or 
punishment;  

→  establish a legal framework covering international cooperation and development policy as 
well as humanitarian aid towards non-EU countries in line with EU policies and principles. 

On the common commercial policy, Georgia officially became a member of the joint initiative 
on the Services Domestic Regulation at the 12th WTO Ministerial Conference in June 2022, 
based  on  EU  recommendations.  Georgia  also  became  a  party  to  the  joint  initiatives  on  the 
investment facilitation for development and on micro, small and medium enterprises. Georgia 
participated in the Ukraine solidarity meeting in the WTO and aligned with the meeting press 
statement on 12 June 2022.  

For Georgia, it remains important to focus on removing regulatory constraints to improve the 
investment climate – including the wider legal framework, investment promotion strategy and 

109 

 
 
institutions, policies to promote responsible business conduct, and impediments to growth of 
priority  sectors.  This  will  help  Georgia  attract  FDI  that  can  have  a  positive  impact  on 
productivity and inclusive, sustainable growth. 

Concerning dual-use items, export controls on dual-use goods are applied in accordance with 
its  2013  Law  on  the  control  of  military  and  dual-use  goods.  Georgia  is  not  a  member  of 
multilateral  export  control  regimes  such  as  the  Wassenaar  53  arrangement,  the  Nuclear 
Suppliers Group, and the Missile Technology Control Regime. Additionally, Georgia is neither 
a participant nor an adherent to the Australia Group. There are certain trade restrictions in place, 
particularly  regarding  some  goods  from  the  Russian  Federation  and  Belarus.  Regarding  the 
transit  of  goods  through  Georgia,  customs  controls  on  the  movement  of  military  and  dual 
designation goods (as well as other sanctioned products) are particularly tightened. 

Regarding trade defence instruments, Georgia has a law in place on anti-dumping measures. 
No legislation on the application of countervailing and safeguard measures is in place. Until 
now, there have been no cases recorded. The Georgian Competition Agency is equipped with 
the necessary personnel and is encouraged to share European experience on awareness raising 
among the industry. 

No  specific  legislation  regarding  export  controls  on  goods  that  could  be  used  for  capital 
punishment, torture or other cruel, inhumane or degrading treatment is in place. Georgia is a 
member of the Alliance for Torture-Free Trade. Georgia is not a member of the Kimberley 
Process and as such does not control trade in rough diamonds. There is no national framework 
in place to control foreign direct investment in strategically sensitive sectors, infrastructure, 
technologies or inputs. 

In  terms  of  administrative  capacity,  Georgia  has  shown  good  capacity  in  managing  its 
commitments in external commercial relations in implementing the Deep and Comprehensive 
Free  Trade  Agreement  Area  and  in  its  function  as  a  member  of  the  WTO.  Regarding 
enforcement,  the  institutional  capacity  has  been  reinforced  and  modified  in  line  with  the 
country’s  regulatory  approximation  commitments  under  the  Deep  and  Comprehensive  Free 
Trade Agreement. 

As  regards  bilateral  agreements  with  third  countries,  Georgia  is  a  party  to  16  free  trade 
agreements,  including  with  the  European  Free  Trade  Association,  China,  Türkiye,  and  the 
United Kingdom. Preferential agreements are in place with some countries with whom the EU 
does  not  have  preferential  agreements:  Armenia,  Azerbaijan,  the  Russian  Federation, 
Turkmenistan  and  Uzbekistan.  In  March  2023,  the  United  Arab  Emirates  and  Georgia 
concluded negotiations on the Comprehensive Economic Partnership Agreement. 

Georgia has 34 Bilateral Investment Treaties in force with other countries, including with 16 
Member  States,  the  United  Kingdom  and  Belarus.  In  February  2023,  the  fifth  round  of 
negotiations on the Foreign Investment Promotion and Protection Agreement with Canada was 
completed. The sixth round is expected by the end of 2023. 

As  regards  development  policy  and  humanitarian  aid,  Georgia  is  a  recipient  of  aid 
programmes rather than a humanitarian aid donor. Only limited support to other countries was 
provided. There is no legislation in place on humanitarian aid and no dedicated budget line. 
Dedicated administrative structures are not in place. Georgia has no legislation on development 
policy nor an administrative structure for it. 

Chapter 31 - Foreign, security and defence policy  

Member States must be able to conduct political dialogue under the EU foreign, security and 
defence policy, align with EU statements, take part in EU action, and apply agreed sanctions 

110 

 
 
and restrictive measures. 

Georgia is moderately prepared in this area. Limited progress was made in the reporting 
period.  Following  Russia’s  war  of  aggression  against  Ukraine,  Georgia  aligned  with  EU 
positions in international fora, including in the UN General Assembly (UNGA). Georgia has 
not aligned with restrictive measures (sanctions) against the Russian Federation and Belarus 
and  with  the  High  Representative  (HR)  declarations  on  this  matter.  However,  Georgia 
cooperated very closely and proactively with the EU on prevention of sanctions circumvention. 
Georgia’s alignment rate with declarations by the High Representative on behalf of the EU and 
Council  decisions  on  restrictive  measures  remained  largely  at  the  same  level.  Georgia 
continued to participate in EU crisis management missions and operations under the common 
security and defence policy.  

Considerable additional efforts are needed to increase the convergence in the area of foreign 
and security policy, in particular the alignment with declarations by the High Representative 
on behalf of the EU and Council decisions as well as the application of restrictive measures. 

In the coming year, Georgia should, in particular: 

→  considerably  increase  its  alignment  rate  with  EU  CFSP  statements  and  decisions;  avoid 
actions and statements that go against EU positions on foreign policy; continue efforts to 
increase hybrid/cyber resilience, through the adoption of a whole of society approach.  

→  continue to ensure that the territory of Georgia and/or legal entities registered in Georgia 

are not used to circumvent EU sanctions, notably in relation to Russia and Belarus. 

The political dialogue between the EU and Georgia on common foreign and security policy 
(CFSP)  continued.  The  EU  and  Georgia  engaged  in  a  policy  dialogue  on  CFSP  in  the 
framework of the EU-Georgia Association Council in September 2022. In addition, the annual 
High-Level Political and Security Dialogue was held in January 2023, complementing regular 
exchanges and further promoting gradual convergence. Annual consultations on security and 
defence also took place in January 2023 with representatives of the Ministry of Defence. 

In the area of the CSFP, in 2022, Georgia’s alignment rate with relevant statements of the High 
Representative  on  behalf  of  the  EU  and  Council  decision  was  44%.  The  rate  has  remained 
largely at the same level (decreased to 43%) in 2023.  

In line with its long-standing policy, Georgia did not align with the EU’s restrictive measures 
regarding Russia, including airspace closure. Georgia aligned with the special “Donetsk and 
Luhansk”  sanctions.  Georgia  also  did  not  align  with  any  of  the  Belarus  sanctions,  the 
statements by the High  Representative on behalf of the EU  and Council  Decisions on  Iran, 
Türkiye and several African countries, nor with sanctions under the EU Global Human Rights 
sanctions regime.  

Despite the lack of alignment, Georgia has pro-actively engaged in ensuring that the territory 
of  Georgia  and/or  legal  entities  registered  in  Georgia  are  not  used  to  circumvent  these 
sanctions,  including  financial  sector  sanctions.  Georgia  introduced  control  for  sanctioned 
goods at  its borders. Georgia also  controls  transit  of goods destined not  only  to  Russia and 
Belarus,  but  also  to  Central  Asia,  Armenia  and  Iran.  Georgia  is  reporting  cases  of 
controlled/stopped goods where circumvention of EU sanctions is suspected with relevant EU 
authorities.  

More  widely,  Georgia  has  aligned  itself  with  international  and  EU  initiatives  in  support  of 
Ukraine, including on resolutions adopted by the General Assembly of the United Nations, the 
Human Rights Council, the Council of Europe.  

111 

 
 
Georgia cooperates constructively with the EU in international fora and is a member of various 
international  organisations,  including  the  United  Nations,  the  Council  of  Europe,  the 
Organisation for Security and Cooperation in Europe and the Organisation of the Black Sea 
Economic Cooperation. Georgia is a member of the Human Rights Council until 2025. Georgia 
ratified the Rome Statute of the International Criminal Court in 2003. Georgia aspires to 
North Atlantic Treaty Organisation membership (enshrined also in its Constitution) and has 
been contributing to NATO-led operations. 

Georgia  is  actively  engaged  in  supporting  disarmament  and  non-proliferation  at 
international,  regional  and  bilateral  levels.  Georgia  is  fulfilling  all  its  commitments  to  the 
International  Atomic  Energy  Agency,  the  Organisation  for  the  Prohibition  of  Chemical 
Weapons and the Biological Weapons Convention.  

On security measures, Georgia and the EU signed an agreement on security procedures for 
the exchange and protection of classified information in  2016, but  the agreement is  not  yet 
implemented as the finalisation of relevant procedures is still ongoing on both sides.  

Security and defence cooperation strengthened over the reporting period, including  in the 
framework  of  the  European  Peace  Facility.  Georgia  continued  to  actively  participate  in  EU 
crisis management missions and operations under the Common Security and Defence Policy 
(CSDP),  notably  the  EU  Training  Mission  in  the  Central  African  Republic.  Georgia 
discontinued its contribution in June 2023. 

Georgia continued to cooperate with the EU to address its vulnerabilities to hybrid threats, 
identified through the hybrid risk survey process.  

112 

 
 
  
  
 
  
  
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND GEORGIA  

On 3 March 2022, Georgia presented its application for membership of the European Union. 
The  European  Council  granted  European  perspective  to  Georgia  in  June  2022,  with  12 
priorities to be addressed in order to be granted candidate status.  

The  EU  and  Georgia  signed  an  Association  Agreement,  including  a  Deep  and 
Comprehensive Free Trade Area in 2014, which fully entered into force on 1 July 2016. The 
AA/DCFTA is the legal instrument serving as the basis for political association and economic 
integration between the EU and Georgia. Overall, Georgia continued to broadly implement its 
obligations  under  the  Association  Agreement.  Regular  political  and  economic  dialogue 
between  the  EU  and  Georgia  has  continued  through  the  AA/DCFTA  structures.  The 
Association  Council  met  in  September  2022,  the  Association  Committee  in  Trade 
Configuration in December 2022 and the Association Committee in July 2023 and the. Regular 
subcommittee  meetings  were  held  throughout  the  period.  The  Parliamentary  Association 
Committee met in June 2023.  

In addition to the AA/DCFTA structures, a Human Rights Dialogue with Georgia is in place 
since 2009 and convenes annually. The High-Level Strategic and Security Dialogue, taking 
forward cooperation on foreign and security policy, was held in January 2023.  

The Georgian government does not exercise effective control over the breakaway regions of 
Abkhazia and South Ossetia. The EU supports Georgia’s sovereignty and territorial integrity 
within  its  internationally  recognised  borders  and  has  been  engaged  since  2008  in  peaceful 
conflict resolution efforts, including through the EU Monitoring Mission and the work of the 
EU  Special  Representative  for  the  South  Caucasus  and  the  crisis  in  Georgia.  The  EU 
Monitoring Mission is the only international presence on the ground, counting more than 300 
personnel.  

Citizens of Georgia enjoy visa free travel to the Schengen since March 2017. As part of the 
visa liberalisation monitoring mechanism, the Commission  has been regularly  assessing  the 
progress made by the country in implementing reforms introduced under the visa roadmap. The 
Commission’s sixth Report under the Visa Suspension Mechanism published in October 2023 
concluded  that  Georgia  continues  to  fulfil  the  visa  liberalisation  benchmarks  and  has  taken 
action to address the Commission’s previous recommendations, however, further efforts are 
needed. A readmission agreement between the European Union and Georgia is in place since 
2011.  

Regarding bilateral financial assistance, the indicative bilateral allocation for Georgia for the 
period 2021-2024 amounts to EUR 340 million under the Neighbourhood, Development and 
International  Cooperation  instrument  –  Global  Europe  2021-2027  (NDICI-GE).  The  2022 
annual action programme was adopted in December 2022 with an envelope of EUR 85 million, 
with two action documents focusing on support Georgians SMEs, the implementation of the 
DCFTA as well as supporting the new public finance management reform strategy. In addition, 
EUR 25 million are allocated for the Neighbourhood Investment Plan (NIP) and EUR 6 million 
for the Civil Society Facility. The bilateral annual programmes are complemented by a package 
of multi-country and regional programmes supporting, among others, the environmental sector, 
dealing with migration, education, culture, as well as TAIEX and competitiveness programmes 
together  with  IFIs  and  international  organisations.  Georgia  also  actively  participates  in  the 
Interreg  NEXT  2021-2027  Black  Sea  programme.  To  facilitate  progress  on  sustainable 
development in the country, Georgia is participating as observer in a pilot project under the 
Technical Support Instrument. 

113 

 
 
Since  its  launch  in  2009,  Georgia  has  participated  in  the  Eastern  Partnership  (EaP).  This 
overarching framework has further boosted bilateral and regional relations with the EU. Under 
the Eastern Partnership Economic and Investment Plan (EIP), in cooperation with European 
financial institutions, the EU aims to mobilise for Georgia around EUR 3.9 billion in public 
and private investments. The EIP accompanies the recovery, resilience and reform: post 2020 
Eastern Partnership priorities as agreed during the Eastern Partnership Summit in 2021.The 
core  of  these  investments  is  the  six  flagships  identified  with  the  Georgian  government, 
including  Black  Sea  connectivity  (electricity  and  digital  cables)  and  transport,  SME 
development, digital connectivity, air quality and energy efficiency). Implementation under the 
flagships is generally progressing well. So far EUR 1.7 billion has been leveraged in key sectors 
of the Plan.  

The  new  activities  are  built  on  and  added  to  the  closed  and  the  few  on-going  regional 
programmes under European Neighbourhood Instrument 2014-2020 which are providing 
significant  support  through  EU  Technical  Cooperation  Facility,  budget  support,  the  Civil 
Society Facility and projects aiming at the social and economic development of the country, as 
well as improving the reform process of the Rule of Law sector, Fundamental Rights, Public 
Administration Reform, and other critical sectors. 

Since  2014  Georgia  has  progressively  extended  its  participation  in  EU  programmes.  It 
currently takes part in Horizon Europe, Creative Europe, EU4Youth, and the Black Sea Interreg 
programme and has recently joined the Customs programme. Organisations and individuals 
from Georgia can also benefit from certain actions of the Erasmus+ and European Solidarity 
Corps Programme.  

114 

 
 
 
STATISTICAL DATA (as of 31/08/2023) 
Georgia 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
Gross domestic product (GDP) (million euro) 
GDP (euro per capita) 
GDP per capita (in purchasing power standards (PPS)) 
GDP per capita (in PPS), relative to the EU average (EU-27 = 100) 
Real GDP growth rate: change on previous year of GDP volume (%) 
Employment growth (national accounts data), relative to the previous year (%) 
Labour productivity growth: growth in GDP (in volume) per person employed, relative to 
the previous year (%) 
Unit labour cost growth, relative to the previous year (%) 
**3 year change (T/T-3) in the nominal unit labour cost growth index (2015 = 100) 
Labour productivity per person employed: GDP (in PPS) per person employed relative to 
EU average (EU-27 = 100) 
Gross value added by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
Final consumption expenditure, as a share of GDP (%) 
Gross fixed capital formation, as a share of GDP (%) 
Changes in inventories, as a share of GDP (%) 
Exports of goods and services, relative to GDP (%) 
Imports of goods and services, relative to GDP (%) 
Gross fixed capital formation by the general government sector, as a percentage of GDP 
(%) 

Note 

Note 

1) 
1) 
1) 

2) 1) 

1) 

1) 

1) 3) 
1) 3) 
1) 3) 
1) 3) 
1) 
1) 
1) 
1) 
1) 

2010 
4 436 s 
69 700 w 

2010 
21 822 w 
9 229 w 
2 437 w 
: 
: 
6.2 w 
-  28 bsw 
: 

: 
: 
: 

9.6 w 
14.9 w 
4.2 w 
71.4 w 
96.5 w 
18.9 w 
1.6 w 
33.0 w 
49.9 w 
: 

2017 
3 726 s 
69 700 w 

2017 
40 762 w 
14 392 w 
3 861 w 
: 
: 
4.8 w 
-  1 sw 
5 w 

-  3 w 
133.8 sw 
: 

7.2 w 
14.2 w 
9.1 w 
69.5 w 
83.7 w 
25.5 w 
1.8 w 
46.5 w 
57.5 w 
: 

2018 
3 730 s 
69 700 w 

2018 
44 599 w 
14 910 w 
4 001 w 
: 
: 
4.8 w 
1 sw 
4 w 

-  1 w 
128.3 sw 
: 

7.8 w 
14.6 w 
8.3 w 
69.3 w 
82.5 w 
25.1 w 
3.0 w 
50.6 w 
61.2 w 
: 

2019 
3 723 s 
69 700 w 

2019 
49 253 w 
15 609 w 
4 196 w 
: 
: 
5.0 w 
0 sw 
5 w 

2 w 
123.2 sw 
: 

7.4 w 
14.7 w 
8.5 w 
69.4 w 
83.7 w 
24.0 w 
1.3 w 
54.8 w 
63.8 w 
: 

2020 
3 717 s 
69 700 w 

2020 
49 267 w 
13 871 w 
3 726 w 
: 
: 
-  6.8 w 
-  4 sw 
-  3 w 

-  2 w 
118.7 sw 
: 

8.3 w 
15.5 w 
8.7 w 
67.5 w 
95.4 w 
22.4 w 
1.5 w 
37.3 w 
56.6 w 
: 

2021 
3 729 s 
69 700 w 

2021 
60 003 w 
15 732 w 
4 242 w 
: 
: 
10.5 w 
-  2 sw 
13 w 

-  7 w 
114.6 sw 
: 

7.4 w 
17.0 w 
7.5 w 
68.1 w 
97.5 w 
20.9 w 
-  2.0 w 
43.2 w 
59.6 w 
: 

Business 
Industrial production volume index (2015 = 100) 
Number of active enterprises (number) 
Birth rate: number of enterprise births in the reference period (t) divided by the number of 
enterprises active in t (%) 

Note 

4) 
5) 

2010 
: 
42 524 w 
: 

2017 
: 
124 982 w 
18.2 w 

2018 
: 
127 153 w 
18.5 w 

2019 
: 
128 623 w 
23.0 w 

2020 
: 
129 659 w 
17.5 w 

2021 
: 
139 741 w 
21.2 w 

115 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Death rate: number of enterprise deaths in the reference period (t) divided by the number 
of enterprises active in t (%) 
People employed in SMEs as a share of all persons employed (within the non-financial 
business economy) (%) 
Value added by SMEs (in the non-financial business economy) (EUR million) 
Total value added (in the non-financial business economy) (EUR million) 

4) 

4) 
4) 

5) 

: 

15.4 w 

19.2 w 

19.7 w 

17.4 w 

17.5 w 

67.3 sw 

67.7 sw 

67.7 sw 

66.1 sw 

63.7 sw 

63.4 sw 

1 528 sw 
2 835 w 

4 454 sw 
6 721 w 

4 553 sw 
6 929 w 

4 856 sw 
7 383 w 

4 205 sw 
6 268 w 

4 647 sw 
7 300 w 

Inflation rate and house prices 
Consumer price index (CPI), change relative to the previous year (%) 
**Annual change in the deflated house price index (2015 = 100) 

Balance of payments 
Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 
Balance of payments current account: net services (million euro) 
Balance of payments current account: net balance for primary income (million euro) 
Balance of payments current account: net balance for secondary income (million euro) 
Net balance for primary and secondary income: of which government transfers (million 
euro) 
**3 year backward moving average of the current account balance relative to GDP (%) 
**Five year change in share of world exports of goods and services (%) 
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-27 countries (million euro) 
Foreign direct investment (FDI) in the reporting economy (million euro) 
of which FDI of the EU-27 countries in the reporting economy (million euro) 
**Net international investment position, relative to GDP (%) 
Year on year rate of change in gross inflow of remittances (in national currency) from 
migrant workers (%) 

Public finance 
General government deficit / surplus, relative to GDP (%) 
General government gross debt relative to GDP (%) 
Total  government revenues, as a percentage of GDP (%) 
Total government expenditure, as a percentage of GDP (%) 

Financial indicators 
Gross external debt of the whole economy, relative to GDP (%) 
Gross external debt of the whole economy, relative to total exports (%) 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 

Note 

6) 

Note 

1) 

Note 

1) 
1) 
1) 
1) 

Note 

1) 

2010 
7.1 w 
: 

2017 
6.0 w 
: 

2018 
2.6 w 
: 

2019 
4.9 w 
: 

2020 
5.2 w 
: 

2021 
9.6 w 
: 

2010 
-  905.2 w 
- 1 983.6 w 
415.1 w 
-  162.8 w 
826.2 w 
: 

: 
: 
552.1 w 
101.7 w 
56.8 w 
653.8 w 
139.8 w 
-  97.8 w 
3.4 sw 

2010 
-  4.3 w 
35.0 w 
26.9 w 
25.1 w 

2017 
- 1 163.0 w 
- 3 361.5 w 
1 779.7 w 
-  709.6 w 
1 128.4 w 
: 

: 
: 
1 515.7 w 
237.7 w 
92.8 w 
1 753.5 w 
493.3 w 
-  139.2 w 
4.6 sw 

2018 
- 1 004.9 w 
- 3 489.5 w 
1 905.4 w 
-  576.1 w 
1 155.2 w 
: 

: 
: 
854.5 w 
286.5 w 
124.3 w 
1 141.0 w 
355.8 w 
-  131.4 w 
4.9 sw 

2019 
-  917.2 w 
- 3 390.4 w 
1 945.4 w 
-  700.6 w 
1 228.4 w 
: 

: 
: 
956.6 w 
252.3 w 
90.3 w 
1 208.9 w 
388.0 w 
-  138.0 w 
5.3 sw 

2020 
- 1 728.8 w 
- 2 771.0 w 
120.4 w 
-  653.2 w 
1 575.0 w 
: 

: 
: 
498.7 w 
30.1 w 
120.8 w 
528.8 w 
299.7 w 
-  158.6 w 
7.4 sw 

2021 
- 1 641.0 w 
- 3 211.4 w 
615.9 w 
-  997.5 w 
1 952.0 w 
: 

: 
: 
783.6 w 
271.7 w 
110.1 w 
1 055.4 w 
299.8 w 
-  142.3 w 
8.6 sw 

2017 
-  0.8 w 
41.0 w 
26.8 w 
23.7 w 

2018 
-  0.7 w 
40.4 w 
26.5 w 
21.5 w 

2019 
-  2.7 w 
41.8 w 
26.2 w 
22.0 w 

2020 
-  9.3 w 
60.1 w 
25.2 w 
27.2 w 

2021 
-  6.3 w 
49.6 w 
25.2 w 
25.6 w 

2010 
83.7 sw 
253.9 w 
1 068.1 w 

2017 
100.6 sw 
217.1 w 
3 069.2 w 

2018 
104.5 sw 
206.2 w 
2 621.5 w 

2019 
107.8 sw 
197.2 w 
2 900.6 w 

2020 
135.5 sw 
361.6 w 
2 825.9 w 

2021 
124.0 sw 
284.6 w 
2 970.3 w 

116 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money supply: M2 (M1 plus deposits with maturity up to two years, million euro) 
Money supply: M3 (M2 plus marketable instruments, million euro) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 
**Private credit flow, consolidated, relative to GDP (%) 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, per annum (%) 
Lending interest rate (one year), per annum (%) 
Deposit interest rate (one year), per annum (%) 
Euro exchange rates: average of period (1 euro = … national currency) 
Trade-weighted effective exchange rate index, 42 countries (2015 = 100) 
**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2015 = 100) 
Value of reserve assets (including gold) (million euro) 

External trade in goods 
Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms of trade (export price index / import price index * 100) (number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
Crude rate of natural change of population (natural growth rate): number of births minus 
deaths (per thousand inhabitants) 
Infant mortality rate deaths of children under one year of age (per thousand live births) 
Life expectancy at birth: male (years) 
Life expectancy at birth: female (years) 

Labour market 
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 
that is economically active (%) 
*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that 
are in employment (%) 
Male employment rate for persons aged 20–64 (%) 
Female employment rate for persons aged 20–64 (%) 
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that 
are in employment (%) 
Employment by main sectors 

117 

1) 

7) 
8) 
9) 

Note 
10) 11) 
10) 11) 
10) 11) 

10) 11) 
10) 11) 

Note 

1 259.7 w 
2 637.9 w 
2 638.4 w 
: 
: 
30 w 
8.49 w 
6.50 w 
7.64 w 
2.364 w 
85.8 w 
0.1 sw 

3 694.7 w 
8 054.7 w 
: 
: 
: 
54 w 
7.97 w 
6.97 w 
7.06 w 
2.832 w 
103.8 w 
0.2 sw 

3 234.2 w 
6 932.0 w 
: 
: 
: 
59 w 
8.12 w 
7.00 w 
7.22 w 
2.991 w 
107.6 w 
0.1 sw 

3 644.3 w 
7 729.1 w 
: 
: 
: 
64 w 
7.05 w 
6.98 w 
7.22 w 
3.155 w 
102.1 w 
- 0.0 sw 

3 845.8 w 
8 553.1 w 
: 
: 
: 
79 w 
8.45 w 
8.52 w 
8.46 w 
3.552 w 
97.8 w 
- 0.1 sw 

4 223.3 w 
8 874.2 w 
: 
: 
: 
72 w 
9.50 w 
9.46 w 
9.13 w 
3.814 w 
97.3 w 
- 0.1 sw 

1 707.9 w 

2 537.8 w 

2 867.3 w 

3 132.6 w 

3 532.4 w 

3 787.3 w 

2010 
3 919 sw 
1 255 sw 
- 2 663 sw 
: 
17.4 sw 
26.8 sw 

2017 
6 718 sw 
2 289 sw 
- 4 429 sw 
: 
23.4 sw 
26.4 sw 

2018 
8 176 sw 
2 952 sw 
- 5 224 sw 
: 
21.1 sw 
26.2 sw 

2019 
8 474 sw 
3 381 sw 
- 5 093 sw 
: 
21.2 sw 
24.2 sw 

2020 
6 563 sw 
2 726 sw 
- 3 838 sw 
: 
20.9 sw 
23.0 sw 

2021 
8 917 sw 
3 746 sw 
- 5 171 sw 
: 
16.9 sw 
22.9 sw 

2010 
3.3 

11.2 
70.0 
78.8 

2017 
1.5 

9.6 
69.2 
77.8 

2018 
1.2 

8.1 
69.7 
78.2 

2019 
0.4 

7.9 
69.8 
78.4 

2020 
-  1.1 

7.9 
: 
: 

2021 
-  3.8 

: 
: 
: 

Note 

2010 
76.3 w 

2017 
76.7 w 

2018 
75.2 w 

2019 
74.5 w 

2020 
63.2 bw 

2021 
64.5 w 

61.7 w 

65.3 w 

64.9 w 

65.1 w 

51.1 bw 

50.6 w 

68.7 w 
55.4 w 
64.4 w 

71.4 w 
59.5 w 
66.8 w 

72.2 w 
58.2 w 
67.2 w 

72.3 w 
58.3 w 
65.8 w 

58.7 bw 
43.9 bw 
47.0 bw 

58.1 w 
43.5 w 
47.3 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
People employed in the public sector as a share of total employment, persons aged 20–
64 (%) 
People employed in the private sector as a share of total employment, persons aged 20–
64 (%) 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed 
(%) 
Long-term unemployment rate: proportion of the labour force that has been unemployed 
for 12 months or more (%) 
Unemployment rate for persons (aged 25–64) having completed at most lower secondary 
education (ISCED levels 0-2) (%) 
Unemployment rate for persons (aged 25–64) having completed tertiary education 
(ISCED levels 5-8) (%) 

12) 
12) 
12) 

13) 12) 

48.0 w 
7.2 w 
: 
44.8 w 
20.6 w 

43.2 w 
8.1 w 
: 
48.8 w 
17.7 w 

38.9 w 
8.3 w 
: 
52.8 w 
18.6 w 

38.2 w 
7.8 w 
: 
54.0 w 
18.3 w 

19.8 bw 
11.4 bw 
6.9 bw 
61.9 bw 
23.5 bw 

18.9 w 
11.3 w 
7.8 w 
62.1 w 
24.3 w 

79.4 w 

82.3 w 

81.4 w 

81.7 w 

76.5 bw 

75.7 w 

14) 
14) 
14) 

17.4 w 
19.1 w 
15.5 w 
37.9 w 

13.9 w 
15.0 w 
12.7 w 
28.9 w 

12.7 w 
13.9 w 
11.2 w 
29.9 w 

11.6 w 
12.8 w 
10.1 w 
30.4 w 

18.5 bw 
20.2 bw 
16.2 bw 
39.4 bw 

20.6 w 
22.7 w 
17.8 w 
42.9 w 

14) 

8.1 w 

5.8 w 

5.1 w 

4.3 w 

5.8 bw 

7.2 w 

15) 

10.2 w 

9.3 w 

10.5 w 

10.8 w 

25.0 bw 

32.1 w 

21.0 w 

15.7 w 

12.6 w 

11.3 w 

14.5 bw 

15.3 w 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (2016 = 100) 
GINI coefficient 
Poverty gap 
*Early leavers from education and training: proportion of the population aged 18–24 with 
at most lower secondary education who are not in further education or training (%) 

Standard of living 
Number of passenger cars relative to population size (number per thousand population) 
Number of mobile phone subscriptions relative to population size (number per thousand 
population) 
Mobile broadband penetration (per 100 inhabitants) 
Fixed broadband penetration (per 100 inhabitants) 

Note 

16) 

Note 

2010 
598 w 
: 

47 w 
7.4 w 
: 

2017 
999 w 
100 w 

42 w 
6.7 w 
8.9 w 

2018 
1 068 w 
104 w 

40 w 
5.9 w 
9.6 w 

2019 
1 129 w 
105 w 

39 w 
5.7 w 
9.3 w 

2020 
1 191 w 
106 w 

37 w 
5.5 w 
8.2 w 

2021 
1 305 w 
106 w 

36 w 
5.5 w 
7.3 w 

2010 
130.1 sw 
984.7 w 

2017 
277.2 sw 
1 399.1 w 

2018 
291.1 sw 
1 392.9 w 

2019 
303.7 sw 
1 314.1 w 

2020 
320.2 sw 
1 273.7 w 

2021 
339.5 sw 
1 343.6 w 

: 
: 

: 
: 

: 
: 

: 
: 

: 
: 

: 
: 

Infrastructure 
Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Note 

2010 
22.5 sw 

69 w 

2017 
22.6 sw 

158 w 

2018 
22.6 sw 

208 w 

2019 
22.6 sw 

208 w 

2020 
22.6 sw 

208 w 

2021 
22.2 sw 

263 w 

Innovation and research 

Note 

2010 

2017 

2018 

2019 

2020 

2021 

118 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to GDP (%) 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of 
GDP (%) 
Percentage of households who have internet access at home (%) 

17) 1) 
1) 
1) 

2.8 sw 
0.28 sw 
0.19 w 

3.6 sw 
: 
0.23 w 

3.5 sw 
: 
0.23 w 

3.9 psw 
: 
0.23 w 

3.8 psw 
: 
0.23 w 

3.6 sw 
: 
0.21 w 

18) 

18.6 w 

70.7 w 

75.8 w 

79.3 w 

83.8 w 

86.1 w 

Environment 
*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 
Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 
constant prices) 
Electricity generated from renewable sources relative to gross electricity consumption (%) 
Road share of inland freight transport (based on tonne-km) (%) 

Note 

2010 
: 
: 

2017 
: 
: 

2018 
: 
: 

2019 
: 
: 

2020 
: 
: 

2021 
: 
: 

107.1 w 
9.1 ew 

19) 

75.3 w 
18.7 ew 

76.8 w 
21.0 ew 

68.1 w 
19.3 ew 

66.1 w 
19.6 ew 

73.0 
17.8 ew 

Energy 
Primary production of all energy products (thousand TOE) 
Primary production of crude oil (thousand TOE) 
Primary production of solid fuels (thousand TOE) 
Primary production of gas (thousand TOE) 
Net imports of all energy products (thousand TOE) 
Gross inland energy consumption (thousand TOE) 
Gross electricity generation (GWh) 

Agriculture 
Agricultural production volume index of goods and services (at producer prices) (2010 = 
100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Source: Eurostat and/or the statistical authorities in Georgia 

: = not available 
  b = break in series 
  e = estimated value 
  p = provisional 

s = Eurostat estimate 

119 

Note 

Note 

20) 

2010 
1 105 w 
: 
: 
: 
: 
: 
10 058 w 

2010 
: 

: 
1 049.4 w 
110.1 w 
653.9 sw 
587.7 w 
: 
: 
216.6 w 

2017 
1 334 
32 
109 
7 
3 642 s 
4 992 
11 531 

2017 
: 

: 
909.7 w 
150.7 w 
907.0 sw 
528.4 w 
: 
: 
206.0 w 

2018 
1 251 
31 
56 
9 
3 752 s 
4 957 
12 149 

2018 
: 

: 
878.9 w 
163.2 w 
869.4 sw 
555.3 w 
: 
: 
212.4 w 

2019 
1 092 
36 
6 
8 
4 118 s 
5 205 
11 857 

2019 
: 

: 
869.5 w 
155.5 w 
891.6 sw 
561.8 w 
: 
: 
241.0 w 

2020 
1 043 
32 
40 
8 
3 984 s 
4 998 
11 160 

2020 
: 

: 
925.8 w 
165.7 w 
946.5 sw 
569.0 w 
: 
: 
259.7 w 

2021 
1 248 
36 
60 
14 
4 133 s 
5 385 
12 645 

2021 
: 

: 
928.6 w 
152.9 w 
956.8 sw 
587.9 w 
: 
: 
226.9 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any assurance as regards their quality 

and adherence to EU statistical methodology 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 

  Footnotes: 

1)  Based on 2008 SNA. 
2)  Based on 1993 SNA. 
3)  Calculations are made according to NACE Rev. 2. 
4)  The value given is the size of the survey frame for business statistics. This excludes NACE Rev. 2 Sections K, O, T and U and Group 47.8. 
5) 

Includes: limited liability companies, joint stock companies, joint liability companies, cooperatives, limited partnerships, individual enterprises, foreign enterprise branches. Excludes: 
NACE Rev. 2 Sections K, O, T and U. 

6)  Consumer price inflation 
7)  TIBR 1 Day 
8)  Refinancing credits auctions. 
9)  CD auctions. 

Including construction. 

10)  Data converted in EUR by Eurostat for 2005-2014 
11)  Data converted in EUR by Eurostat 
12)  Since 2020 - NACE Rev.2, before 2020 - NACE Rev.1.1. 
13) 
14)  Persons aged 15 years and older. 
15)  Persons without education are excluded. 
16)  Consumption based relative poverty. 
17)  GDP is calculated according to 2008 SNA. Based on 2008 SNA. 
18)  Percentage of households having fixed internet connections at home (therefore excluding mobile phone network). 
19)  Does not follow the 'territorial principle'; including the performance of all resident carriers on the national territory and abroad. 
20) 

Including kitchen gardens. 

120 

 
 
 
 
 
 
121