COMMISSION STAFF WORKING DOCUMENT Georgia 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy
Date: 2024-10-30
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, 30.10.2024  SWD(2024) 697 final  COMMISSION STAFF WORKING DOCUMENT Georgia 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy                             {COM(2024) 690 final} - {SWD(2024) 690 final} - {SWD(2024) 691 final} - {SWD(2024) 692 final} - {SWD(2024) 693 final} - {SWD(2024) 694 final} - {SWD(2024) 695 final} - {SWD(2024) 696 final} - {SWD(2024) 698 final} - {SWD(2024) 699 final}  
 
 
Contents 

1. INTRODUCTION .......................................................................................................................................3 

1.1. Context ............................................................................................................................................3 
1.2. Main findings of the reports ............................................................................................................4 
1.3. Assessment of the implementation of the steps / priorities ........................................................... 22 

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ........................................... 27 

2.2.1. 
2.2.2 

2.1. Functioning of democratic institutions and public administration reform .................................... 27 
2.1.1 Democracy ...................................................................................................................... 27 
2.1.2. Public administration reform .......................................................................................... 30 
2.2 Rule of law and fundamental rights ............................................................................................... 32 
Chapter 23: Judiciary and fundamental rights ......................................................... 32 
Chapter 24: Justice, freedom and security ............................................................... 47 
2.3. Economic criteria .......................................................................................................................... 54 
2.3.1 The existence of a functioning market economy ............................................................. 54 
2.3.2. The capacity to cope with competitive pressure and market forces within the Union ... 59 
2.4. Public procurement, statistics, financial control ........................................................................... 61 
Chapter 5 - Public procurement................................................................................................ 61 
Chapter 18 - Statistics .............................................................................................................. 62 
Chapter 32 - Financial control .................................................................................................. 64 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION ....................................... 65 

4.  ABILITY TO ASSUME OBLIGATIONS OF MEMBERSHIP .................................................... 65 

Cluster 2: Internal Market .................................................................................................................... 65 
Chapter 1 - Free movement of goods ....................................................................................... 66 
Chapter 2 - Freedom of movement for workers ....................................................................... 67 
Chapter 3 - Right of establishment and freedom to provide services ....................................... 67 
Chapter 4 - Free movement of capital ...................................................................................... 67 
Chapter 6 - Company law ......................................................................................................... 68 
Chapter 7 - Intellectual property law ........................................................................................ 69 
Chapter 8 - Competition policy ................................................................................................ 69 
Chapter 9 - Financial services .................................................................................................. 70 
Chapter 28 - Consumer and health protection .......................................................................... 71 
Cluster 3: Competitiveness and inclusive growth ................................................................................ 72 
Chapter 10 - Digital transformation and media ........................................................................ 73 
Chapter 16 - Taxation ............................................................................................................... 74 
Chapter 17 - Economic and monetary policy ........................................................................... 74 
Chapter 19 - Social policy and employment ............................................................................ 75 
Chapter 20 - Enterprise and industrial policy ........................................................................... 77 
Chapter 25 - Science and research ........................................................................................... 78 
Chapter 26 - Education and culture .......................................................................................... 79 
Chapter 29 - Customs union ..................................................................................................... 80 
Cluster 4: The Green agenda and sustainable connectivity .................................................................. 81 
Chapter 14 - Transport policy .................................................................................................. 81 
Chapter 15 - Energy ................................................................................................................. 82 

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Chapter 21 - Trans-European networks .................................................................................... 84 
Chapter 27 - Environment and climate change ........................................................................ 84 
Cluster 5: Resources, Agriculture and Cohesion .................................................................................. 87 
Chapter 11 - Agriculture and rural development ...................................................................... 87 
Chapter 12 - Food safety, veterinary and phytosanitary policy ................................................ 88 
Chapter 13 - Fisheries and aquaculture .................................................................................... 89 
Chapter 22 - Regional policy and coordination of structural instruments ................................ 90 
Chapter 33 - Financial and budgetary provisions ..................................................................... 91 
Cluster 6: External relations ................................................................................................................. 91 
Chapter 30 - External relations ................................................................................................. 91 
Chapter 31 - Foreign, security and defence policy ................................................................... 93 
Annex I – Relations between the EU and Georgia ............................................................................... 95 
Annex 2 – Statistical data ..................................................................................................................... 97 

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1. INTRODUCTION1  

1.1. CONTEXT 

Georgia applied for EU membership in March 2022. Based on the Commission’s Opinion, Georgia was 
given a European perspective on 23 June 2022 by unanimous agreement between the leaders of all 27 EU 
Member  States.  In  December  2023,  the  European  Council  granted  Georgia  candidate  status  on  the 
understanding that the relevant nine steps set out in the Commission recommendation of 8 November 2023 
were taken. The nine steps primarily relate to reforms in the area of democracy, rule of law and fundamental 
rights. On 27 November 2023, the government of Georgia adopted an action plan on the implementation of 
the nine steps necessary to advance on the EU path. On 26 March 2024, the government adopted the 2024 
Action Plan for Georgia’s EU Integration. The decision to resuscitate and the subsequent adoption of the 
Law on transparency of foreign influence on 28 May, were followed by other negative developments that 
do not reflect the government’s stated commitment to the EU path.   

These  developments  were  discussed  by  the  European  Council  on  27 June 2024.  In  its  conclusion,  the 
European  Council  underlined  that,  in  particular,  the  adopted  Law  on  transparency  of  foreign  influence 
represented  backsliding  on  the  steps set  out in  the  Commission’s recommendation  for  candidate  status. 
Building on its conclusions in June 2024, on 17 October 2024 the European Council reiterated its serious 
concerns regarding the course of action taken by the Georgian government, which runs counter to the values 
and principles upon which the EU is founded. The European Council recalled that such a course of action 
jeopardises Georgia’s European path, and de facto halts the accession process.  

The rate of alignment with the EU’s common foreign and security policy remains considerably low, i.e. at 
49%, and Georgia has not participated in EU crisis management missions and operations under the common 
security and defence policy since June 2023. The number of direct flights to various destinations to/from 
Russia has significantly increased during the reporting period. Georgia cooperated with the EU to prevent 
circumvention of sanctions.  

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.  

1.2. MAIN FINDINGS OF THE REPORTS2  

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS  

1The 2024 report is presented in a renewed format and structure. Main findings of the report, together with the recommendations 
(previously grey assessment boxes) are brought together at the beginning of the report. Furthermore, under the fundamentals 
cluster, for better readability and comparability across all reports, certain data is provided (also) in the form of graphs. 

2 This report covers the period from 15 June 2023 to 1 September 2024. It is based on inputs from a variety of sources, including 
contributions from Georgia, 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.  

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2.1.1 Democracy  

The electoral framework is largely in line with relevant international standards, but presents a number of 
shortcomings. The Election Code was amended in March and May 2024 with limited consultation. The 
adopted provisions are not in line with European Commission recommendations nor with joint opinions of 
the Venice Commission and OSCE/ODIHR, including on the appointment procedure for the chairperson 
of the Central Election Commission (CEC).  Recent changes to fundamental aspects of the electoral law 
mark a step backwards overall. Parliamentary elections were held on 26 October 2024. A Joint international 
election observation mission led by OSCE/ODIHR was deployed to Georgia as of 10 September 2024. In 
their  preliminary  findings  and  conclusions  published  on  27  October3,  the    election  observation  mission 
identified several shortcomings that occurred in a tense and highly polarised environment.  The reported 
weaknesses include i.a. the recent legislative amendments to the election process, frequent compromises 
on vote secrecy, procedural inconsistencies, intimidation and pressure on voters that negatively impacted 
public  trust  in  the  process.  These  preliminary  findings  confirm  the  need  for  a  comprehensive  electoral 
reform that was already highlighted in past key recommendations.  

Parliament has exercised its powers in an unsatisfactory way. The quality of the legislative processes was 
adversely affected by the profound political polarisation and limited extent to which the opposition was 
included in the substance of the reforms. The level of cross-party cooperation on EU-related reforms was 
very limited. The level of constructive political dialogue was significantly reduced, particularly after the 
reintroduction  of  the  Law  on  transparency  of  foreign  influence.  Civil  society  was  not  given  sufficient 
opportunity to  engage  meaningfully  and  constructively.  The  Georgian  National Platform  of the  Eastern 
Partnership Civil Society Forum terminated the Memorandum of Cooperation with Parliament. Members 
of  Parliament (MPs)  utilised  parliamentary  oversight  tools  to  scrutinise  the  government.  The  quality  of 
oversight  of  security  services  remained  limited.  Investigations  into  allegations  of  large-scale  illegal 
wiretapping in 2021 have not yet led to any prosecutions.  

The institutions in charge of the EU integration process are mostly in place. While EU integration remains 
a  stated  policy  objective,  reforms  and  some  developments  over  the  last  year  were  not  in  line  with  this 
objective and limited political attention was mobilised by the government to progress on the EU agenda. 
Georgia’s authorities should clarify their intentions by reversing this course of action. Stronger cross-party 
political support in all decision-making state institutions is required to pursue EU-related reforms more 
effectively. Inter-ministerial coordination and civic participation to implement the EU agenda should be 
strengthened. Georgia’s authorities also need to replace anti-EU narratives with proactive and objective 
communication about the EU and its support for the country.   

There was overall limited progress during the reporting period in strengthening good governance. Political 
polarisation restrains inter-institutional relations as well as policymaking and legislative processes.  

Civil  society  organisations  (CSOs)  in  Georgia  operate  in  an  increasingly  difficult  environment  that 
constrains the vibrant civil society.  The enabling environment for civil society has been affected by the 
persistent negative rhetoric, increasing acts of intimidation, threats and physical assaults directed against 
critical and watchdog CSOs, and the adoption of stringent disproportionate legislation aimed at stigmatising 
CSOs  and  media  that  receive  foreign  funding.  Both  formal  and  informal  frameworks  for  state-civic 
cooperation  have  been  severely  affected.  Georgia  still  lacks  a  comprehensive  government  strategy  to 
support  and  cooperate  with  civil  society.  Dedicated  mechanisms  for  public  online  consultations,  or  for 
contributions to draft laws or policy documents, still need to be created. 

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. 

3 579346.pdf (osce.org) 

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Public administration reform  

Georgia  is  moderately  prepared  in  the  area  of  public  administration  reform  (PAR)  and  made  limited 
progress over the reporting period. Georgia’s civil service continues to present some fragmentation, with 
a lack of clarity of the role and scope of legal entities of public law (LEPLs), limited standardisation of 
procedures  and  limitations  in  the  effective  application  of  public  service  legislation.  Efforts  need  to  be 
maintained to ensure a stable, modern, people-centred, effective, accountable and transparent civil service.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

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

→  strengthen the legal mandate and capacity of the government administration to coordinate the activities 

of the ministries;  

→  continue  and  consolidate  the  reform  to  extend  the  mandate  of  the  Civil  Service  Bureau  for 
standardisation,  monitoring  and  scrutiny  beyond  its  advisory  role;  continue  to  review  the  legal 
framework to effectively guarantee people’s right of access to public information, and to guarantee 
consistent and equal enforcement of current legislation. 

Chapter 23: Judiciary and fundamental rights 

In  the  area  of  judiciary  and  fundamental  rights,  Georgia  has  some  level  of  preparation.  There  was  
backsliding during the reporting period. 

Functioning of the judiciary 

Georgia has some level of preparation and there was  backsliding. Together, the amendments from June 
2023 and May 2024 address two key Venice Commission recommendations while some newly introduced 
provisions  go  against  European  Commission  and  Venice  Commission  recommendations.  Systemic  and 
substantial recommendations of the Venice Commission remain outstanding. In addition, Georgia needs to 
address most of the recommendations highlighted by the EU’s nine steps, in particular regarding the High 
Council of Justice (HCJ), the Supreme Court and the Prosecutor’s Office. Several negative developments 
have taken place, undermining independence and integrity of the judicial system and implementation of 
recommendations  addressed  to  Georgia  in  2023.  These  include  the  appointment  of  a  new  Prosecutor-
General with simple majority in July 2024, as well as the suspension by the Tbilisi City Court of the decision 
of the President to appoint a new non-judge member to the HCJ, as well as a prohibition to appoint new 
members for five months in July 2024. In addition, in 2024, the Parliament appointed four Supreme Court 
judges, despite the fact that the legal framework concerning the selection process remains not fully in line 
with European standards. The main recommendations from last year were not addressed and remain valid. 
In particular, Georgia needs to: 

→  adopt  further  amendments  to  the  Law  on  common  courts  to  bring  it  fully  in  line  with  Venice 
Commission recommendations on the powers of the HCJ concerning transfers of judges and  on the 
selection process for the Supreme Court (including effective appeal, qualifications of Supreme Court 
judges and an anti-deadlock mechanism). 

→  adopt and implement a broader reform of the judiciary, in particular, to reform the HCJ in line with 
Venice  Commission  recommendations,  including  restrictions  on  the  reappointment  of  its  members, 
notably by fixed non-renewable terms. Moreover, establish a system of extraordinary integrity checks, 
with the involvement of international experts with a decisive role in the process, for candidates and 

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persons currently appointed to all leading positions in the judiciary, in particular the HCJ, the Supreme 
Court and court presidents. 

→  adopt  draft  constitutional  amendments  which  include  changing  the  appointment  procedure  of  the 
Prosecutor General from simple to qualified majority in Parliament; align the Law on the Prosecutor’s 
Office with European standards, following the recommendations of the Venice Commission, OECD 
and the Technical Assistance and Information Exchange (TAIEX) peer review on the functioning of 
the justice sector and the fight against organised crime carried out in May 2023. 

Fight against corruption  

Georgia  has  some  level  of  preparation  and  has  made  limited  progress  in  the  reporting  period. 
Amendments to the Law on the fight against corruption were adopted on 30 May 2024, but do not address 
substantial European Commission and Venice Commission recommendations, in particular regarding the 
independence and political neutrality of  the Anti-Corruption Bureau (ACB). This has yet to be adequately 
addressed. More efforts are needed to tackle high-level corruption and, in particular, to address large-scale 
vested interests and their influence in the political, judicial, and economic spheres. The ACB has not yet 
developed  a  new  national  anti-corruption  strategy  or  an  action  plan.  Targeted  risk  assessments  and 
dedicated measures are needed to address corruption in the most vulnerable sectors. 

The Commission’s 2023 recommendations were partly implemented. In the coming year, Georgia needs in 
particular to: 

→  continue  its  efforts  to  align  the  legislation  on  the  ACB  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; Georgia should also develop 
and  adopt  an  anti-corruption  strategy  and  action  plan,  and  ensure  that  it  is  comprehensively 
implemented through realistic timelines, adequate funding and appropriate monitoring mechanisms; 

→  repeal  the  decision  of  February  2023  to  withdraw  from  the  OECD/ACN  and  fully  implement 

recommendations from the previous assessment rounds;   

→  continue implementing a systemic approach on de-oligarchisation in line with the recommendations by 

the Venice Commission (Opinions of March 2023 and June 2023). 

Fundamental rights  

The  legislative  and  institutional  framework  on  fundamental  rights  is  largely  in  place,  but  was  severely 
challenged by the adoption of concerning decisions over the reporting period. The adoption of the Law on 
transparency of foreign influence in May 2024, and the adoption of the legislative package on ‘family values 
and  protection  of  minors’  in  September  2024  undermine  the  overall  legal  framework  for  upholding 
fundamental rights. Both initiatives infringe upon human rights and fundamental freedoms, in particular 
the rights to freedom of association, expression and privacy. The 2024-2026 action plan on the protection 
of human rights was adopted following a limited consultation process. The Law on personal data protection 
service was amended in May 2024 without addressing key Venice Commission recommendations. Tbilisi 
Pride did not take place in 2024 due to fears of reprisals and violence. By abolishing the mandatory electoral 
gender quotas in Parliament, the Parliament reversed the commitment to extend those quotas until 2032, 
which was positively assessed by the Commission in 2023 as a reason to consider the priority on gender 
equality completed.   

The Commission’s recommendations from last year were not implemented and remain valid. In the coming 
year, Georgia should in particular: 

→  repeal the Law on transparency of foreign influence; 

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→  adopt national strategies to fight all forms of hatred and discrimination, and protect ethnic and religious 
minorities;  strengthen  the  implementation  of  the  anti-discrimination  legislation;  take  more  decisive 
measures to address and prevent hate speech and hate crimes;  

→  repeal the legislative package on “family values and protection of minors”; investigate and prosecute 
the  organisers  of  the  violence  on  5 July 2021  and  8 July 2023  at  Tbilisi  Pride;  amend  the  national 
strategy and action plan on human rights to ensure that the rights of lesbian, gay, bisexual, transgender, 
intersex and queer (LGBTIQ) persons are fully upheld; 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; 

→  align the data protection legal framework with the EU acquis: Regulation (EU) 2016/679 and Directive 

(EU) 2016/680.   

→  Strengthen / resume efforts to achieve gender equality, in particular by aligning the legal framework 
with the Istanbul Convention, addressing recommendations provided in the GREVIO report of 2022, 
and promoting women's political participation in Parliament. 

Freedom of expression  

Backsliding was observed during the reporting period, leading to a situation where Georgia is now between 
an early stage of preparation and having some level of preparation on freedom of expression. Georgia 
maintained a pluralist and diverse media landscape. Extreme polarisation remains a challenge. The adoption 
of  the  Law  on  the  transparency  of  foreign  influence  negatively  impacts  freedom  of  expression  and  the 
ability of the media to operate freely. Increasing acts of intimidation, threats and verbal and physical assault 
against  civil  society  representatives  and journalists  took  place  during  the  reporting  period.  Discrediting 
rhetoric against media professionals by high-level public officials and politicians created an increasingly 
hostile environment, threatening media freedom, pluralism, and the safety of journalists. The adoption of 
the legislative package on “Family values and protection of minors” further restricts freedom of expression. 
These instances run counter to international human rights standards. Instigators of the 5 July 2021 violence 
against journalists remain free and investigations into the 2024 attacks have not yet been launched. On the 
positive side, the Law on broadcasting was amended to further align with the Audiovisual Media Services 
Directive. Closer alignment is still needed to strengthen the independence of the regulatory bodies.  

The Commission’s recommendations from last year on the independence of the national media regulator 
were  implemented.  Other  recommendations  need  to  be  followed  up,  and  therefore  remain  valid.  In  the 
coming year, Georgia needs in particular to: 

→  ensure the safety of journalists and provide prompt, impartial and due legal follow-up to cases of attacks 
against and intimidation of journalists, including as regards the instigators of the 5 July 2021 violence 
against over 50 journalists; ensure the media can work unimpeded and ensure an environment that is 
free of hate speech;  

→  further align the legislative framework with European and international standards, in particular on hate 
crimes and hate speech, including the 2008 Council Framework Decision on combating certain forms 
and expressions of racism and xenophobia; 

→  ensure the public has timely access to information by creating an effective supervisory mechanism. 

Chapter 24: Justice, freedom and security   

Georgia  has  some  level  of  preparation.  Limited  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. The envisaged key legislation on the 

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separation  of  powers  between  criminal  prosecution  and  investigation  bodies  is  still  pending.  Reception 
centres for migration and asylum are now operational and, so far, coping with the inflow of migrants.  

The Commission’s recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular:  

→  ensure continuous fulfilment of the visa liberalisation benchmarks and strengthen action to address the 
issue of increasing number of unfounded asylum applications and irregular stays in EU Member States;  

→  continue  to  fulfil  the  visa  liberalisation  benchmarks  regarding  anti-money  laundering  measures  to 
combat money laundering, prevent/tackle corruption and organised crime, and address asset recovery; 

→  maintain an effective level of implementation of the Integrated Border Management strategy and 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  Commission’s  recommendations  from  last  year  were  partly  implemented  and  remain  valid.  In  the 
coming year, Georgia should in particular: 

→  increase  the  effectiveness  of  the  investigation  into  criminal  networks  with  progress  on  the 
implementation of intelligence-led policing (ILP) and increase investigators’ analytical capabilities; 

→  adopt legislation on the separation of powers between criminal prosecution and investigation bodies; 

set up asset recovery and asset management offices; 

→  continue strengthening the independence, accountability and oversight of law enforcement agencies.  

ECONOMIC CRITERIA 

The existence of a functioning market economy 

Georgia  is  moderately  prepared  and  has  made  limited  progress  in  creating  a  functioning  market 
economy. The authorities continued to implement sound fiscal and monetary policies that are supportive 
in managing exceptionally high levels of economic growth, while achieving sharp disinflation, despite a 
challenging external environment and a high level of polarisation in domestic politics. While further steps 
were  taken  to  strengthen  public  finance  management  and  to  address  labour  market  bottlenecks,  little 
progress was made in dealing with important structural issues including strengthening the independence 
of the central bank and reforming the governance of state-owned enterprises. 

Georgia has advanced on last year’s recommendations, which remain valid. In the coming year, Georgia 
should in particular: 

→  continue to implement prudent fiscal and monetary policies and ensure that the 2024 budget deficit is 
within the target set in the budget law, adopt and start to implement the medium-term revenue strategy, 
improve the analysis of tax expenditures and prepare recommendations to implement its findings, and 
improve fiscal oversight and governance of state-owned enterprises; 

→  adopt and start implementing the new Labour Market Strategy addressing the main weaknesses of the 
labour market, such as the low employment rate, especially among women and young people, and the 
significant regional differences, as well as take steps to prepare a policy plan to address the significant 

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size of the informal economy in a holistic manner;  

→  further develop the non-banking segments of the financial sector, including by implementing the capital 
market  development  strategy,  in  particular  by  increasing  the  quantity  and  types  of  government 
securities in local currency, and by developing the insurance market.   

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

Georgia has some level of preparation and has made some progress in coping with competitive pressure 
and market forces within the EU. There was limited progress on education reform including in vocational 
education and training (VET), but the level of educational achievement remains limited. Despite public 
support for the development of the innovation ecosystem, spending on research and innovation remains 
very  low.  The  level  of public  investment  was  high,  especially  in transport,  and the  authorities  attracted 
private  investors  in  renewable  energy  through  competitive  auctions.  The  structure  of  the  economy  is 
dominated  by  low-skilled  services,  but  the  IT  sector  recorded  a  significant  growth  recently.  Economic 
integration with the EU remains moderate, with the EU accounting for 20.9% of Georgia’s external trade 
in 2023. 

Georgia has advanced on last year’s recommendations, which remain valid. In the coming year, Georgia 
should in particular: 

→ further develop its ports, railways, roads and the necessary energy infrastructure, as well as improve the 

quality of assessment of public investment projects;  

→ stimulate innovation and make efforts to increase exports of higher value-added goods and services, in 
particular  through  facilitating  certification,  compliance  with  sanitary  and  phytosanitary  standards, 
export promotion, logistics and the development of the necessary infrastructure for exports; 

→ further improve the quality and inclusiveness of education and training to ensure that their outcomes 
align  with  labour  market  needs,  in  particular  by  accelerating  reforms  of  vocational  education  and 
training,  revising  the  secondary  education  curricula,  and  improving  teachers’  professional 
development.   

Chapter 5 - Public procurement   

Georgia  has  some  level  of  preparation  in  the  area  of  public  procurement.  Some  progress  was  made, 
notably with the adoption of several pieces of legislation to implement the new Law on public procurement, 
and the adoption of guidelines on green procurement.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

→  further align its legislative framework with the EU public procurement  acquis, including on 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  to  ensure  impartiality  and 

independence. 

Chapter 18 - Statistics  

Georgia has some level of preparation in the area of statistics. Limited progress was made during the 

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reporting period with the adoption of the new Law on official statistics and the strategy for the development 
of official statistics 2024-2027. 

The Commission's 2023 recommendations were partially implemented and remain valid. In the coming 
year, Georgia should in particular: 

→  further  strengthen  coordination  and  cooperation  between  Geostat  and  the  government,  as  well  as 

between Geostat and line ministries and agencies; 

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

→  increase the production and dissemination of timely and high-quality data. 

Chapter 32 - Financial control 

Georgia has some level of preparation in the area of financial control. No progress was made during the 
reporting period as reforms are still in the initial stages.  

The Commission's recommendations from last year were not implemented and remain valid. In the coming 
year, Georgia should in particular: 

→  implement financial management and control arrangements and strengthen managerial accountability; 

→  consolidate the capacity of the central harmonisation unit within the Ministry of Finance in terms of 

human and financial resources; 

→  set up an official anti-fraud coordination service. 

CLUSTER 2: INTERNAL MARKET  

Chapter 1 - Free movement of goods   

Georgia has some level of preparation in the area of free movement of goods. No progress was made 
during the reporting period.  

The Commission's recommendations from last year were not implemented and remain valid. In the coming 
year, Georgia should in particular: 

→  initiate  work  on  the  implementation  of  market  surveillance  in  compliance  with  the  EU  acquis  and 

phase-out the ‘pre-notification’ system of market surveillance before the placing on the market; 

→  adopt a strategy and action plan with a clear timetable to complete Georgia’s alignment with the EU 

acquis on standards, conformity assessment, accreditation, metrology and market surveillance; 

→  further implement legislation to align with the EU acquis on energy labelling. 

Chapter 2 - Freedom of movement for workers 

Georgia is at an early stage of preparation in the area of free movement of workers. No progress was 
made during the reporting period.  

The Commission's recommendations from last year were not implemented and remain valid. In the coming 
year, Georgia should in particular: 

→  engage  in  further  negotiations,  and  conclude  additional  bilateral  agreements  on  social  security 

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coordination with EU Member States where no such agreements have been signed; 

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

security system reform; 

→  initiate preparatory work towards joining the European Network of Employment Services (EURES) 

upon accession. 

Chapter 3 - Right of establishment and freedom to provide services  

Georgia is moderately prepared in the area of the right of establishment and freedom to provide services. 
There was no progress during the reporting period.  

The Commission's recommendations from last year were not implemented and remain valid. In the coming 
year, Georgia should in particular: 

→  further align with Directive 2006/123/EC on services in the internal market (Services Directive);  

→  update the Association Agreement (AA)/ Deep and Comprehensive Free Trade Area (DCFTA) annex 
on the rules applicable to postal and courier services and continue progress on aligning with the EU 
postal acquis; 

→  start  to  align  with  the  EU  acquis  on  the  recognition  of  professional  qualifications  and  on  a 

proportionality test before adoption of new regulation of professions. 

Chapter 4 - Free movement of capital  

Georgia is moderately prepared in the area of free movement of capital. There was limited progress in 
the  reporting  period,  including  on  the  implementation  of  the  strategy  and  action  plan  for  anti-money 
laundering and countering the financing of terrorism. Georgia must continue to align with the EU acquis 
on anti-money laundering and payment systems. 

The Commission's recommendations from last year were mostly not implemented and remain valid. In the 
coming year, Georgia should in particular: 

→  further align legislation with the EU Payment Services Directive 2;  

→  address  outstanding  Moneyval’s  recommendations,  in  particular  on  beneficial  ownership  of  legal 
persons and legal arrangements, in line with the EU acquis, and take concrete steps to implement the 
national money laundering and terrorist financing risk assessment; 

→  align legislation with the EU acquis by removing restrictions on the acquisition of agricultural land by 

EU nationals. 

Chapter 6 - Company law  

Georgia has some level of preparation in the area of company law. There was limited progress, notably 
the adoption of amendments in accordance with Regulation (EU) No. 537/2014 on specific requirements 
related to mandatory audits of public interest entities.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

→  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,  and  shareholder  rights,  including  the 

11 

 
 
encouragement of long-term shareholder engagement; 

→  finalise a gap asssessment on takeover bids with a view to further aligning with the EU acquis in this 

area; 

→  align with the EU acquis on financial reporting, country by country reporting, corporate sustainability 
reporting  and  transparency,  and  provide  the  appropriate  level  of  financial  and  human  resources  for 
effective  oversight,  investigations  and  sanctions  tasks  and  strengthen  the  administrative  capacity  of 
National Agency of Public Registry (NAPR); 

Chapter 7 - Intellectual property law  

Georgia  has  some  level  of  preparation  in  the area of intellectual property law.  Limited  progress  was 
made, notably with the entry into force of the Validation Agreement.  

Legislation  on  copyright  and  industrial  property  rights  is  partially  aligned  with the  EU  acquis.  Georgia 
should continue to strengthen the capacity of law enforcement authorities in intellectual property matters.  

The Commission’s 2023 recommendations were partly implemented and remain valid. In the coming year, 
Georgia should in particular: 

→  start negotiations on accession to the European Patent Convention; 

→  ensure  the  implementation  of  amendments  to  the  Law  on  copyright  and  related  rights  and  to  the 

Trademark Law; 

→  align with Directive 98/71/EC on the Legal Protection of Designs and the Directive 2016/943 on Trade 
Secrets, and continue strengthening collaboration with the European Union Intellectual Property Office 
to further advance and consolidate the objectives achieved so far.  

Chapter 8 - Competition policy  

Georgia is between an early stage of preparation and having some level  of preparation in the area of 
competition policy. There was some progress, with several pieces of primary and implementing legislation 
enacted.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

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

→  strenghten  the  enforcement  capacities  of  the  Georgian  Competition  and  Consumer  Agency,  and 

continue building a solid record of enforcement decisions.  

Chapter 9 - Financial services 

Georgia has some level of preparation in the area of financial services. Georgia made limited progress 
during the reporting period.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

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

→  continue efforts to align with the EU  acquis on the regulation of the banking and insurance sectors 

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(including bank resolution and bank deposits guarantee schemes) and on the regulation of securities 
markets, investment funds, investment services and financial market infrastructures. 

Chapter 28 - Consumer and health protection  

Georgia has some level of preparation in the area of consumer and health protection. There was some 
progress on alignment with the EU acquis on timeshares, and on blood, tissues, cells and organs. 

The Commission’s 2023 recommendations were partially implemented. In the coming year, Georgia should 
in particular: 

→  further  align  consumer  and  health  protection  laws  with  the  EU  acquis  and  ensure  their  effective 

enforcement; 

→  further align  and enforce legislation with the EU acquis on blood, tissues, cells and organs, and on 

medical devices; 

→  further  align  the  tobacco  control  legislation  with  the  EU  acquis  and  with  the  WHO  Framework 
Convention on Tobacco, while refraining from adopting legislation contradictory to the provisions of 
the convention. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH  

Chapter 10 - Digital transformation and media   

Georgia has some level of preparation in the area of information society and media. Limited progress 
was  made,  with  the  adoption  of  the  by-laws  completing  the  primary  legislation  on  transposing  the 
Broadband Cost Reduction Directive (BCRD) first adopted in May 2023.    

The Commission’s 2023 recommendations were partially implemented. In the coming year, Georgia should 
in particular: 

→  develop an overarching digital strategy, in line with the EU strategies Shaping Europe’s Digital Future 

and the ‘Digital Compass’;  

→  make progress in alignment with the EU acquis on telecommunications;  

→  develop a cybersecurity strategy towards achieving legal alignment with the EU Directive on measures 
for a high common level of cybersecurity across the Union (NIS2) and ensure alignment with the EU 
5G Cybersecurity Toolbox. 

Chapter 16 - Taxation 

Georgia is between having some level of preparation and a moderate level of preparation in the area 
of taxation. There was limited progress through aligning legislation with the EU acquis on VAT and excise 
duties.  

The Commission's recommendations from last year were partially implemented and therefore remain valid. 
In the coming year, Georgia should in particular: 

→  take  concrete steps to  align  legislation  on  direct  taxation  with  the  EU  acquis  and  international best 
practices,  in  particular  in  cases  of  retained  or  reinvested  profits,  merger,  subsidiaries,  interest  and 
royalties; 

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→  make progress in the implementation of the automatic exchange of tax information with EU Member 

States in line with the OECD Global Standards; 

→  continue aligning legislation on VAT and excise duties with the EU acquis. 

 Chapter 17 - Economic and monetary policy 

Georgia is moderately prepared  in the area of economic and monetary policy.  Limited progress was 
made in the reporting period on some economic and fiscal policy issues such as submission of the first 
economic  reform  programme  and  improving  fiscal  oversight  of  state-owned  enterprises.  The  legal 
amendments necessary to strengthen the central bank’s independence have not been adopted.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

→  ensure the independence of the National Bank of Georgia, including by adhering to proper appointment 

procedures and sound central bank governance; 

→  take steps towards strengthening the institutional set-up of the independent fiscal institution, its legal 

mandate and the capacity to undertake qualitative analytical work;  

→  improve consistency and comparability between fiscal reports and further expand their coverage. 

Chapter 19 - Social policy and employment   

Georgia has some level of preparation in the field of social policy and employment. Limited progress 
was made in the reporting period, including by strengthening the capacity of the Labour Inspection Office 
and launching the implementation of the ‘single  window’ principle for state employment and social support 
services.  

The  Commission's  recommendations  from  last  year  were  partly  implemented  and  remain  valid.  In  the 
coming year, Georgia should in particular: 

→  further  align  with  the  EU  labour  and  occupational  safety  and  health  acquis  and  ensure  the  rules  are 

enforced; specifically as regards the most recent Directives on occupational safety and health; 

→  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. 

Chapter 20 - Enterprise and industrial policy  

Georgia is moderately prepared in the area of enterprise and industrial policy. There was limited progress 
in  the  reporting  period,  with  the  adoption  of  a  Foreign  Investment  Strategy  providing  a  framework  for 
investments for 2024-2028. 

The Commission’s 2023 recommendations were partly implemented and remain valid. In the coming year, 
Georgia should in particular: 

→  adopt strategies for green growth and on investment promotion; 

14 

 
 
→  adopt and implement programmes for industry after stakeholder consultations; 

→  align with EU legislation on late payments by clarifying payment terms for the public administration 

and introducing the provision on late payment interest; 

Chapter 25 - Science and research   

Georgia is moderately prepared in the area of science and research. There was some progress related to 
the European Research Area and on increasing participation in Horizon Europe. 

The  Commission's  recommendations  from  last  year  were  partly  implemented  and  remain  valid.  In  the 
coming year, Georgia should in particular: 

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

→  proactively support cooperation between research and industry and promote innovation in line with the 

five flagships of the new European innovation agenda;  

→  strengthen the implementation and internationalisation of sector-specific scientific priorities; begin to 
implement the Smart Specialisation Strategy in the Imereti Region, and begin to design new strategies 
in other regions.  

Chapter 26 - Education and culture  

Georgia is moderately prepared in the area of education and culture. Limited progress was made during 
the  reporting  period  in  fulfilling  last  year’s  recommendations  related  to  the  adoption  of  the  career 
development strategy and submission of the VET strategy for adoption. The amendment on the Law on 
general education, which creates the basis for the implementation of a new system supporting inclusive 
education, entered into force in June 2024. 

The  Commission’s  other  2023  recommendations  remain  valid.  In  the  coming  year,  Georgia  should  in 
particular: 

→  adopt and start to implement the 2024-2028 Vocational education and training strategy; 

→  start to implement the 2024-2030 strategy for professional orientation, counseling, and career guidance; 

→  improve public consultation and civil dialogue on culture. 

Chapter 29 - Customs union  

Georgia is moderately prepared in the area of the customs union. There was some progress during the 
reporting  period.  The  regulatory  and  technical  framework  for  the  application  of  the  Common  Transit 
procedure and the implementation of the New Computerised Transit System (NCTS) was developed with 
the  objective  of  joining  the  Common  Transit  Convention  on  1st  December  2024,  and  a  programme  for 
authorised economic operators is in place. No further actions were taken to align customs legislation with 
the EU acquis.  

The Commission’s 2023 recommendations were partly implemented and remain valid. In the coming year, 
Georgia should in particular: 

→  fully align its 2019 national Law on customs with the Union Customs Code, including implementing 

15 

 
 
EU-equivalent customs procedures and digital tools; 

→  Further  improve  administrative  and  operational  capacity,  performance  and  integrity  of  the  customs 

service to ensure effective control of goods and fight smuggling of illicit goods; 

→  strengthen the administrative capacity in the IT sector of the customs service and  start preparations 
towards achieving interconnection and interoperability of its national customs IT systems with the EU 
electronic customs environment. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

Chapter 14 - Transport policy  

Georgia has some level of preparation in terms of transport policy. There was some progress during the 
reporting  period  with  the  setting-up  of  the  Road  Safety  Department  and  the  regional  Road  Safety 
Observatory in February 2024, and alignment with the international transportation of goods and passengers 
regulations. Georgia needs to make additional efforts on road safety to reduce the high number of road 
accidents and fatalities.  

The Commission’s recommendations from last year were partly implemented. In the coming year, Georgia 
should in particular: 

→  further align with the relevant EU acquis e.g.on the procedures for checks on the transport of dangerous 

goods by road or on the social and market rules for road transport; 

→  improve the safety of its infrastructure (road construction and maintenance), as well as the safety of 
road users through proper enforcement and education and awareness-raising campaigns to reduce the 
currently high number of road accidents and fatalities; 

→  complete the institutional framework (independent regulatory body and national investigation body) 

for rail transport. 

Chapter 15 - Energy   

Georgia has some level of preparation in the area of energy. There was some progress during the reporting 
period. The 2030 renewables target in the draft National Energy and Climate Plan (NECP) is now in line 
with Georgia’s legal obligations under the Energy Community Treaty. Georgia has amended the  energy 
efficiency and energy efficiency in buildings laws and launched day-ahead and intraday markets, which 
started on 1 July 2024, with amendments to the design of the electricy market concept. In addition, most of 
the applicable provisions of the Risk-preparedness Regulation were succesfully transposed into the rules 
on Electricity Security of Supply.  

The  Commission’s  recommendations  from  last  year  were  partly  implemented  and  remain  valid.  In  the 
coming year, Georgia should in particular: 

→  ensure  the  opening  of  the  organised  electricity  market  in  line  with  the  requirements  of  the  Energy 
Community acquis, and finalise the adoption of all necessary legislative amendments for transmission 
system operator (TSO) unbundling and for the unbundling of the distribution system operator (DSO) 
level in gas;  

→  accelerate the transposition and implementation of applicable provisions from the Electicity Integration 

Package; 

16 

 
 
 
→  adopt  amendments  to  the  renewable  energy  Law  to  fully  transpose  and  implement  the  Renewable 

Energy Directive II (REDII). 

Chapter 21 - Trans-European networks  

Georgia has some level of preparation in the area of trans-European networks. There was some progress 
during  the  reporting  period,  notably  the  implementation  of  trans-European  transport  network  (TEN-T) 
projects (e.g the East-West Highway) and the finalisation of the Baku-Tbilisi-Kars railway. The legislative 
framework needs to be aligned with the regulations on the trans-European networks for transport and trans-
European networks for energy to implement transport and energy projects. Georgia’s transport and energy 
infrastructures are insufficiently developed.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

→  improve the performance of the rail and road networks in terms of quality, capacity and safety, taking 

into account the new requirements in the revised TEN-T regulation; 

→  align with the Regulation on guidelines for trans-European energy infrastructure as adapted and adopted 

by the Decision of the Energy Community Ministerial Council in December 2023. 

Chapter 27 - Environment and climate change 

Georgia is at an early stage of preparation in the area of environment and climate change. There was 
some  progress  in  the  reporting  period,  notably  on  the  adoption  of  the  new  Law  on  water  resources 
management,  on  access  to  environmental  information,  on  air  quality  monitoring,  the  broadening  of  the 
obligations of Extended Producer Responsibility organisations, and the adoption of the 2024-2025 action 
plan of the climate change strategy.  

The Commission’s recommendations from last year were partly implemented and remain valid, including 
with regard to the adoption and implementation of sectoral strategies and related investments. In the coming 
year, Georgia should in particular: 

→  implement structural reforms to improve waste and water management and strengthen administrative 
and inspection capacities, which all remain critical issues, and ensure that there is there an institutional 
structure in place to deliver coordinated, strategic planning for environmental investments; 

→  implement  commitments  under  the  Energy  Community’s  Decarbonisation  Roadmap  and  urgently 
prepare  for  the  introduction  of  a  carbon  pricing  instrument  in  line  with  the  Energy  Community 
recommendations, starting with the monitoring, reporting and verification of greenhouse gas emissions; 

→  adopt a climate law, strengthen climate mainstreaming across all policies and ensure consistent and 

timely implementation of climate policies. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

Chapter 11 - Agriculture and rural development  

Georgia  is  at  an  early  stage  of  preparation  in  the  area  of  agriculture  and  rural  development.  Some 
progress was made in the reporting period, notably with the adoption of the Law on agriculture and rural 
development.  The  Law  on  water  and  the  Law  on  tourism  were  also  adopted,  offering  increased  rural 

17 

 
 
 
development opportunities.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

→   strengthen the administrative capacity, including of the paying agency, andprogress on aligning the 

legal framework with the EU acquis in the field of agriculture and rural development;  

→  continue efforts to set up an integrated administration and control system (IACS) in line with the EU 

acquis, including a land parcel identification system (LPIS) for the entire country; 

→  start the creation of a farm sustainability data network (FSDN). 

Chapter 12 - Food safety, veterinary and phytosanitary policy  

Georgia has  some level of preparation  in the area of food safety, veterinary and phytosanitary policy. 
There  was  some  progress  made,  including  certification  of  the  Quality  Management  System  (ISO 
9001:2015) for food safety official control and the granting of National Reference Laboratory status to the 
State Laboratory of Agriculture. The control system in place to prevent aflatoxin contamination of hazelnuts 
and hazelnuts products intended for export to the EU has been favourably assessed by the Commission. A 
comprehensive  strategy  to  implement  food  safety  rules  is  necessary,  and  a  review  of  policies  and  and 
necessary institutional reforms needs to be carried out.  

The Commission's recommendations from last year were partially implemented and remain valid. In the 
coming year, Georgia should in particular: 

→  further align legislation with the EU acquis, including with the transposition of the Official Controls 

Regulation (EU) 2017/625; 

→  improve  the  implementation  by  regional  and  local  services,  as  well  as  industries,  of  the  aligned 
legislation, which is concerned with ensuring producers and food business operators comply with the 
Hazard Analysis Critical Contact Point (HACCP) system; 

→  strengthen surveillance capacity, diagnostic resources and the delivery of sanitary and phytosanitary 

(SPS) electronic certification through the EU TRACES online platform. 

Chapter 13 - Fisheries and aquaculture 

Georgia has some level of preparation in the area of fisheries and aquaculture. Limited progress was 
made, notably by submitting a flag state notification, accepted by the EU, authorising the exports of fishery 
products to the EU from April 2024. Georgia has engaged in the participative development of its fisheries 
strategy  in  line  with  the  regional  fisheries  strategy  of  the  General  Fisheries  Commission  for  the 
Mediteranean and the Black Sea (GFCM).  

The  Commission’s  recommendations  from  last  year  were  partly  implemented  and  remain  valid.  In  the 
coming year, Georgia should in particular: 

→  continue  aligning  its  legislation  with  the  EU’s  common  fisheries  policy  and  aquaculture  acquis;  in 
particular as regards Regulation (EU) No 1379/2013 on the common organisation of the markets in 
fishery and aquaculture products; 

→  improve recording and reporting of information and data regarding fishing activities, namely catches 

and fishing effort; 

18 

 
 
→  become a contracting party to the GFCM.  

Chapter 22 - Regional policy and coordination of structural instruments  

Georgia continues to be in between an early stage of preparation and having some level of preparation 
in  the  area  of  regional  policy.  Some  progress  was made,  notably  with  the  updating  of policy  planning 
documents and by granting more powers to local authorities through implementation of the decentralisation 
strategy.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented.  In  the  coming  year, 
Georgia should in particular: 

→  strengthen  its  administrative  capacity  in  terms  of  programming,  implementing,  monitoring  and 
evaluating EU funds, while building on the experience from the European Neighbourhood Instrument 
Cross-Border Cooperation (ENI CBC) and Interreg NEXT programmes; 

→  use the positive outcomes of the pilot regional development programme (PIRDP 2019-2022) in the new 
2024-2027  programme  targeting  territorial  development,  increase  coverage  to  the  whole  country 
(excluding the large urban centres of Tbilisi and Batumi), and deepen the competitive project selection 
procedure. 

Chapter 33 - Financial and budgetary provisions  

In the area of own resources Georgia is at an early stage of preparation. There was no progress made 
during the reporting period.  

The Commission's recommendations from last year were not implemented and remain valid. In the coming 
year, Georgia should in particular: 

→  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.  

CLUSTER 6: EXTERNAL RELATIONS  

Chapter 30 - External relations 

Georgia is moderately prepared in the area of external relations. There was limited progress made during 
the reporting period. Some measures were taken to improve the investment climate and the group of trade 
partners is expanding.  

The Commission's recommendations from last year were partially implemented and remain valid. 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;  

→  create  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. 

Chapter 31 - Foreign, security and defence policy  

19 

 
 
 
Georgia is moderately prepared in this area. No progress was made in the reporting period. Georgia’s 
rate of alignment with the EU’s common foreign and security policy remains considerably low at 49%. 
While Georgia cooperated closely with the EU to prevent sanctions circumvention, it has not aligned with 
the  great  majority  of  restrictive  measures  (sanctions)  against  Russia,  Belarus  and  Iran.  Georgia  did  not 
participate in EU crisis management missions and operations under the common security and defence policy 
during the reporting period. 

The recommendations from last year were not implemented and remain valid. In the coming year, Georgia 
should in particular: 

→  considerably increase its alignment with the CFSP (statements by the High Representative on behalf of 
the EU and Council decisions on sanctions) and avoid unilateral statements and actions that run contrary 
to EU positions on foreign policy;  

→  continue to ensure that the territory of Georgia and/or legal entities registered in Georgia are not used 

to circumvent EU sanctions, particularly in relation to Russia and Belarus; 

→  consider participating in EU crisis management missions and operations under the common security 

and defence policy. 

1.3. ASSESSMENT OF THE IMPLEMENTATION OF THE STEPS / PRIORITIES  

Step 1: Fight disinformation and foreign information manipulation and interference against the EU and its 
values. 

In December 2023, the Government adopted a communication strategy for 2024-2027 and a linked action 
plan in May 2024, focusing on the fight against anti-Western disinformation and propaganda, enhancing 
media  literacy,  detecting  and  monitoring  disinformation  and  upgrading  the  strategic  communication 
system.  The  Stratcom and Information  Centre  on  NATO-EU  under the  Ministry  of  Foreign  Affairs  has 
conducted information campaigns and various awareness-raising activities nationwide. Local think tanks, 
NGOs,  fact-checkers  and  investigative  outlets  have  expressed  readiness  to  collaborate  with  State 
institutions, but there has been no dialogue nor coordination in this area. 

During the reporting period, manipulation of EU-related information has been increasing. In particular since 
the  re-introduction  of  the  draft  law  on  transparency  of  foreign  influence  in  April  2024,  harsh  anti-EU 
messages, actively spread by high level ruling party officials and MPs, have become recurrent. In the run-
up to Parliamentary elections, disinformation narratives have been disseminated and amplified by i.a. ruling 
party officials and government-affiliated media.  

Step 2: Improve Georgia’s alignment with the EU’s Common Foreign and Security Policy 

In  the  area  of  the  Common  Foreign  and  Security  Policy  (CFSP),  by  the  end  of  the  reporting  period, 
Georgia’s  alignment  rate  with  relevant  statements  of  the  High  Representative  on  behalf  of  the  EU  and 
Council decisions was persistently low at 49%. Georgia did not join most restrictive measures relating to 
Russia, Iran and Belarus and further increased direct flights to various destinations in Russia. It continued 
to cooperate with the EU on prevention of sanctions circumvention, while passing new legislation allowing 
the tax-free transfer of offshore funds to Georgia. 

During  the  reporting  period,  Georgia  continued  to  align  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 and the OSCE. 

20 

 
 
 
Step 3:  Further  address  the  issue  of  political polarisation,  including through  more inclusive  legislative 
work  with  opposition  parties  in  Parliament,  notably  on  legislation  related  to  Georgia’s  European 
integration. 

The level of political polarisation further deepened, particularly in the run-up to the 2024 parliamentary 
elections and in the wake of the adoption of the Law on transparency of foreign influence. Cross-party 
cooperation  on  EU integration-related reforms  was  very  limited  as  most  of  the  relevant  legislation  was 
adopted and appointments were made without the opposition’s involvement. The Parliament did not ensure 
sufficient involvement of civil society in the legislative processes. Threats from leaders of the parliamentary 
majority  towards  opposition  members  and  civil  society  representatives  continued.  During  the  protests 
around the  law  on  transparency of  foreign  influence, several  key figures  of opposition  parties  and civil 
society representatives have been verbally intimidated and physically attacked. On 23 August, the ruling 
party  announced  its  plan  to  ban  most  of  the  opposition  parties  in  case  of  victory  in  the  October’s 
parliamentary elections. Relations between the President and the Government have further deteriorated over 
the reporting period, with the President vetoing a series of laws she assessed contradictory to Georgia’s EU 
integration and filing a lawsuit at the Constitutional Court against the foreign influence law.  

Step  4:  Ensure  a  free,  fair  and  competitive  electoral  process,  notably  in  2024,  and  fully  address 
OSCE/ODIHR recommendations. Finalise electoral reforms, including ensuring adequate representation 
of the electorate, well in advance of election day. 

In  February  2024,  the  Government  invited  a  OSCE/ODIHR  election  observation  mission.  The  Central 
Election  Commission  (CEC)  led  a  large-scale  information  campaign  about  the  use  of  electronic 
technologies, which are expected to cover 90% of voters and will be used in around 70% polling stations 
nationwide. In March, Parliament adopted amendments to the Election Code disregarding long-standing 
recommendations of the Venice Commission and OSCE/ODIHR. The amendments foresee the appointment 
of the CEC Chairperson and CEC non-party members by a simple majority of Parliament members and 
foresee  no  effective  involvement  of  other  institutions,  including  the  President.  In  April,  Parliament 
appointed the CEC Chair. Previous recommendations from joint Venice Commission and  OSCE/ODIHR 
opinions have still not been fully addressed. These include the delimitation of electoral districts, changes 
to  media  campaign  regulations  and  preventive  measures  against  the  intimidation  of  voters.  Further 
amendements to the Electoral Code adopted in May 2024 without prior inclusive consultations with the 
opposition, abolished the CEC  advisory  group  composed  of representatives  of the  Public  Defender  and 
observer organisations. In the same month, Parliament voted to abolish gender quotas on electoral lists, 
which  had  been  previously  extended  until  2032.  On  16  August,  the  CEC  adopted  a  resolution  which 
mandates that the drawing of lots to distribute the functions of commission members at all types of polling 
stations must be conducted no later than the seventh day before voting, instead of on the day of voting. The 
preliminary  findings of the  joint international election  observation mission  led  by  the  OSCE  Office  for 
Democratic  Institutions  and  Human  Rights identified  several shortcomings  that occurred  in  a  tense  and 
highly polarised environment. The reported weaknesses include i.a. the recent legislative amendments to 
the election process, frequent compromises on vote secrecy, procedural inconsistencies, intimidation and 
pressure on voters that negatively impacted public trust in the process. These preliminary findings confirm 
the need for a comprehensive electoral reform that was already highlighted in past key recommendations. . 

Step 5: Further improve the implementation of parliamentary oversight notably of the security services. 
Ensure institutional independence and impartiality of key institutions, notably the election administration, 
the National Bank and the Communications Commission. 

Parliament initiated the process to fill the vacant opposition seat in the Parliamentary Trust Group in March 
2024, but lengthy vetting procedures mean that the chosen person will effectively not be able to take up the 
position before the end of the legislative period. Another vacancy in the trust group appeared when the 
Chairman of the Parliament’s Defence and Security Committee was appointed as the Head of Intelligence 

21 

 
 
Service  of  Georgia.  Quality  of  oversight  over  security  services  remained  limited.  Investigation  into 
allegations of large-scale illegal wiretapping in 2021 has not, so far, led to any prosecutions.  

Electoral amendments adopted in March 2024 (see also Step 4) reduce the institutional independence of the 
Central Election Commission. No actions were undertaken to strengthen the independence of the National 
Bank and to ensure that all board members are appointed in a transparent and competitive manner. There 
have been no steps undertaken to appoint a governor since March 2023 and some board positions remain 
vacant. 

 The  amendments  to  the  Law  on  broadcasting  adopted  by  Parliament  in  November  2023,  included 
provisions on selecting and terminating the tenure of Communications Commission (ComCom) members. 
In June 2024, the ComCom adopted secondary normative acts, including codes of conduct for on-demand 
audio-visual media services, guidelines on the definition of a small audience and standards for access to 
media  services  for  persons  with  disabilities.  Guidelines  on  hate speech  are  being  finalised  and selected 
elements of the audio-visual media services directives, such as on advertising, are not fully covered. 

Step 6: Complete and implement a holistic and effective judicial reform, including a comprehensive reform 
of  the  High  Council  of  Justice  and  the  Prosecutor’s  Office,  fully  implementing  Venice  Commission 
recommendations, and following a transparent and inclusive process. 

In  May  2024,  Parliament  adopted  amendments  to  the  Law  on  Common  Courts,  which  do  not  address 
systemic and substantial recommendations of the 2023 enlargement report and the Venice Commission for 
a comprehensive reform of the High Council of Justice (HCJ) and the Supreme Court including a system 
of extraordinary integrity checks. The law addresses one key recommendation of the Venice Commission 
on judges’ disciplinary liability and has several minor positive elements including on transparency and the 
gradual renewal of the composition of the HCJ. Amendments do not tackle judicial reform in a holistic and 
effective manner and no preparations were made for introducing a system of extraordinary integrity checks. 
A new Prosecutor-General was appointed with simple majority in July 2024, and the Tbilisi City Court 
suspended the decision of the President to appoint a new non-judge member to the HCJ, and prohibited to 
appoint new members for five months in July 2024. Moreover, in 2024, four Supreme Court judges were 
appointed by Parliament despite the fact that the legal framework concerning the selection process remains 
not fully in line with European standards. 

In  2023,  limited  amendments  to  the  Law  on  the  Prosecution  Service  addressed  prosecutorial  self-
governance in the recruitment of prosecutors and the extension of the scope of the asset declaration regime 
to  all  prosecutors.  The  legal  changes  do  not  align  the  legislative  framework  with  European  standards 
including the appointment procedure of the Prosecutor General and internal independence and disciplinary 
proceedings of prosecutors.  

Step 7: Further address the effectiveness and ensure the institutional independence and impartiality of the 
Anti-Corruption  Bureau,  the  Special  Investigative  Service  and  the  Personal  Data  Protection  Service. 
Address Venice Commission recommendations related to these bodies, in an inclusive process. Establish a 
strong track record in investigating -corruption and organised crime cases. 

Parliament adopted amendments to the Law on the fight against corruption, strengthening the immunity of 
the Head of the Anti-Corruption Bureau (ACB) and protection of whistle-blowers. However, the current 
institutional design of the ACB does not provide for a sufficient degree of independence, as the amendments 
did  not  address  key  Venice  Commission recommendations  related to  the institution’s  independence,  its 
political neutrality and investigative functions on high-level corruption cases. This has yet to be adequately 
addressed. Further efforts are also needed to tackle high-level corruption and to address large-scale vested 
interests and their influence in both the political, judicial and economic spheres. No updated anti-corruption 
risk assessment, strategy and action plan were developed in the reporting period. Georgia has not re-joined 
the OECD anti-corruption monitoring network for Eastern Europe and Central Asia (OECD/ACN).    

22 

 
 
Parliament  adopted  amendments  to  the  Laws  on  Special  Investigation  Service  (SIS)  and  protection  of 
personal data which take into account some Venice Commission recommendations including on selection 
process and investigative jurisdiction. Key concerns regarding the appointment and immunity of the heads 
of  the  services,  exclusion  of  high-ranking  officials,  effectiveness  of  the  investigations  of  the  SIS  and 
expanding the mandate linked to covert wiretapping remain outstanding. 

Step  8:  Improve  the  current  action  plan  to  implement  a  multi-sectorial,  systemic  approach  to  de-
oligarchisation,  in  line  with  Venice  Commission  recommendations  and  following  a  transparent  and 
inclusive process involving opposition parties and civil society. 

Parliament voted down the draft law on de-oligarchisation envisaging a ‘personal’ approach in September 
2023  and  the  government  adopted  a  de-oligarchisation  action  plan  in  November  2023.  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 reform, the fight against money 
laundering, and the financing of political parties and media. The plan does not provide a regular consultation 
mechanism with all Parliamentary parties and civil society. The distribution of tasks and timelines remain 
overly broad. During the reporting period, Georgia adopted amendments to the election code on political 
party  financing,  on  the  Law  on  fight  against  corruption  and  enacted  several  pieces  of  primary  and 
implementing legislation on competition policy.  Amendments to the tax code adopted in April 2024 by 
Parliament in expediated procedure allowing for the tax-free transfer of offshore funds to Georgia are not 
in line with international best practice.  

Step  9:  Improve  the  protection  of  human  rights,  including  by implementing  an  ambitious  human  rights 
strategy  and  ensuring  freedom  of  assembly  and  expression.  Launch  impartial,  effective  and  timely 
investigations in cases of threats against vulnerable groups, media professionals and civil society activists, 
and bring organisers and perpetrators of violence to justice. Consult and engage with civil society, allowing 
for their meaningful involvement in legislative and policymaking processes, and ensure they can operate 
freely. 

The  strategy  on  the  protection  of  human  rights  2023-2030  has  not  been  amended  to  incorporate  the 
recommendations from the 2023 enlargement report. The action plan 2024-2026 for the implementation of 
the human rights strategy was approved in December 2023 with limited consultation and does not include 
provisions concerning LGBTIQ people and the protection of privacy.   

On 17 September 2024, Parliament adopted a legislative package consisting of the Law on family values 
and protection of minors and eighteen amendments to existing laws without prior public consultations and 
a thorough analysis of the compliance with European and international standards. On 3 October, the Speaker 
of  the  Parliament  signed  into  law  the  Law  on  family  values  and  protection  of  minors,  following  the 
President's refusal to either sign it or veto it.  A draft Constitutional Law on protecting family values and 
minors  registered  in  Parliament  by  the  ruling  majority  in  April  2024  remains  pending.  The  Venice 
Commission had found the draft constitutional law incompatible with relevant European and international 
standards and recommended not to proceed with its adoption. As a result of the legislative activities and the 
continued prevalence of homophobic hate speech, LGBTIQ people in Georgia are facing an increasingly 
hostile and stigmatising atmosphere. Investigations into the organisation of violence of the 2021 and 2023 
Pride events have not been concluded. 

Georgia continues to implement the  national  action plan  for combating  domestic  violence and violence 
against women, but gaps in prevention and response to gender-based violence remain. The legal definition 
of rape does not fully comply with the standards set in the Istanbul Convention. 

The Law on transparency of foreign influence was adopted in May 2024 despite a Venice Commission 
opinion recommending repealing the law in its entirety. The law undermines the freedom of association 
and expression, the right to privacy, the right to participate in public affairs as well as the prohibition of 
discrimination. Cumbersome reporting requirements and extensive powers given to the Ministry of Justice 

23 

 
 
in controlling civil society and media organisations increase the risk of selective and arbitrary application. 
There has been  an increasing  number  of  acts  of intimidation, threats and  physical assaults against  civil 
society activists, political leaders and journalists, in particular in the context of the demonstrations against 
the Law on transparency of foreign influence. Most acts remain to be properly investigated. 

The Law on transparency of foreign influence is expected to further limit CSO operations and reduce their 
involvement in legislative and policymaking processes. In addition, as a consequence of the law, CSOs 
terminated the October 2023 memorandum of cooperation between Parliament and the National Platform 
of  the  Eastern  Partnership  Civil  Society  Forum.  No  progress  has  been  achieved  on  processes    for 
consultations or contributions for draft laws or policy documents over the reporting period, nor has any 
progress been achieved on the strategic engagement with civil society.  

   

24 

 
 
 
 
2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS  

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM  

2.1.1 Democracy  

The functioning of democratic institutions has been  affected by the deep political polarisation, a lack of 
effective cross-party cooperation and limited parliamentary oversight. Additionally, there was very limited 
participation of civil society organisations (CSOs) in decision-making processes. The adoption of stringent 
legislation targeting civil society and media organisations that receive foreign funding, as well as persistent 
hostile  rhetoric  and  increasing  acts  of  intimidation,  threats  and  physical  assaults  against  civil  society, 
opposition politicians and journalists were observed. The ruling party has expressed its intention to ban 
most opposition parties if it obtains a constitutional majority after the 2024 parliamentary elections.  

Elections  

Overall, the electoral framework is largely in line with international standards, but presents a number of 
shortcomings.  In  March  2024,  Parliament  passed  amendments  to  the  Election  Code  and  the  rules  of 
procedure, which: (i) allow Parliament to appoint the CEC chairperson and non-party members by a simple 
majority  for  a  full  5-year  term;  (ii)  transfer  the  authority  to  nominate  the  CEC  chairperson  from  the 
President to the Speaker of Parliament; and (iii) abolish the post of deputy chairperson, which was intended 
for the representative of the opposition. These amendments are not in line with the joint opinions of the 
Venice  Commission  and  OSCE/ODIHR  of  December  2023  and  June  2024.  Parliament  did  not  address 
several OSCE/ODIHR recommendations from previous elections ahead of the parliamentary elections in 
2024. The delimitation of electoral districts, changes to media campaign regulations, limits on donations 
for election campaigns affecting the level playing field, and preventive measures against the intimidation 
of voters have still not been addressed.  

On 30 April 2024, Parliament appointed the CEC chairperson and three non-party members, which was 
made possible by the new rules on appointments introduced by the Election Code and the rules of procedure. 
The selection process was not sufficiently competitive as only one candidate (the acting chairperson who 
had held the position since 2021) applied for the position of chairperson, while only four candidates (of 
whom three were acting CEC members) applied for the three vacancies for non-party members. 

On  27 June 2024,  the  ruling  party  overrode  the  Presidential  veto  and  adopted  additional  electoral 
amendments which allow the CEC to make decisions by simple majority (instead of qualified majority) and 
which  abolish  the  CEC  advisory  group,  composed  of  the  representatives  of  the  Public  Defender  and 
observer  organisations.  In  its  June  2024  opinion,  the  Venice  Commission  underlined  that  the  adopted 
amendments  are  insufficient  to  ensure  a  consensus-based  political  process,  which  is  crucial  for  the 
independence and impartiality of the CEC and for public trust in the institution. On 16 August, the CEC 
adopted a resolution which mandates that the drawing of lots to distribute the functions of commission 
members at all types of polling stations must be conducted no later than the seventh day before voting, 
instead of on the day of voting.  

Georgia  held  its  first  ever  fully  proportional  parliamentary  elections  on  26 October 2024,  with  a  5% 
electoral threshold, and for the first time applied electronic voting procedures. A joint international election 
observation  mission  led  by  OSCE/ODIHR  was  deployed  to  Georgia  as  of  10  September  2024.  In  their 
preliminary findings and conclusions published on 27 October, the mission identified several shortcomings 
that occurred in a tense and highly polarised environment. The reported weaknesses include i.a. the recent 
legislative  amendments  to  the  election  process,  frequent  compromises  on  vote  secrecy,  procedural 
inconsistencies, intimidation and pressure on voters that negatively impacted public trust in the process. 
These  preliminary  findings  confirm  the  need  for  a  comprehensive  electoral  reform  that  was  already 
highlighted in past key recommendations. 

25 

 
 
On  15 May 2024,  Parliament  adopted  amendments  which  abolish  the  40%  threshold  for  municipal 
elections, which are scheduled in 2025, and allow political parties to designate ‘delegates’ for each electoral 
district for the upcoming elections in October 2024. 

The  investigations  launched  in  July  2022  by  the  Office  of  the  Prosecutor  General  into  past  reports  of 
intimidation, vote-buying and pressure on candidates and voters have so far not led to any prosecutions or 
convictions.  

139

other 

Graph 1: Georgia - Women in political life

Women  remain  under-represented  in  public  office.  As  regards  women’s  participation  in  elections,  on 
15 May 2024,  Parliament  adopted,  under  an  accelerated  procedure  and  with  no  prior  consultation, 
legislative 
amendments 
abolishing  mandatory  gender 
quotas.  No 
special 
temporary  measures  have  been 
introduced  to  increase  women’s 
representation  in  elected  bodies 
ahead  of 
the  parliamentary 
elections. The extension of gender 
quotas  in  Parliament  until  2032 
had been a positive element in the 
2023  Georgia  report  and  as  a 
result the gender equality priority 
had  been  assessed  as  completed. 
The  amendments  abolishing  the 
mandatory 
gender 
quotas undermine previous efforts to enhance gender equality.  

Number of  party
leaders
Total

160
140
120
100
80
60
40
20
0

Number of
ministers
Women

Source: Parliament, Ministry of Interior

Number of MPs

electoral 

Mayors

4,70

100

13

27

12

64

19

15

25

20

40

60

80

%

2

3

3

0

Parliament  

Due to significant tensions between the ruling and opposition parties, some parliamentary procedures do 
not function correctly. Efforts to reduce polarisation and improve Parliament’s oversight and control over 
the government, including real scrutiny of legislative implementation were insufficient. Most legislative 
proposals from opposition parties are neither scheduled for debate nor included as part of draft laws.  

Political  polarisation  has  increased  considerably  in  the  pre-election  period,  around  the  topics  of  the 
impeachment proceedings against the President, laws required to advance the EU reform agenda, and the 
adoption  of  the  Law  on  transparency  of  foreign  influence,  the  latter  leading  to  verbal  and  physical 
confrontations  in  Parliament.  Most  opposition  parties  subsequently  decided  to  boycott  parliamentary 
sessions. There has been an increase in direct and violent threats from leaders of the parliamentary majority 
towards opposition members. During the protests around the Law on transparency of foreign influence, 
several key figures in the opposition parties were attacked. In August 2024, the Prime Minister announced 
plans to ban opposition parties if the ruling party wins the October parliamentary election and secure  a 
Constitutional majority. Substantive cross-party work, including on EU-related reforms, was very limited. 
Only three working meetings were held to address the nine steps, which were attended by all but one of the 
opposition parties, amid an overall reduction in inclusivity and transparency.  

Parliamentary cooperation and engagement with civil society has declined substantially in the reporting 
period and has come to a near complete standstill following the reintroduction of the Law on transparency 
of foreign influence.  

The amendments abolishing the mandatory electoral gender quotas in Parliament go against commitments 
to extend those quotas and further efforts to reach gender equality.  

The emergency procedure to pass legislation, including in areas relevant to EU commitments, continued to 
be  used, including for institutionally  sensitive matters,  for  instance  to  adopt the Law  abolishing  gender 

26 

 
 
quotas. A legal framework providing for comprehensive impact assessments of proposed legislation is in 
place, but it is only partially followed.  

Parliamentary oversight of the security services remained limited, including through the ‘trust group’ in 
Parliament. In March, an opposition MP was nominated to fill the vacant opposition post in the trust group, 
but due to lengthy vetting procedures, the position will remain vacant until the end of the parliamentary 
term. 

There  have  been  repeated  cases  of  verbal  abuse  and  harassment  of  women  in  Parliament.  The  Public 
Defender criticised Parliament in June 2024 for its stigmatising rhetoric, particularly towards persons with 
disabilities. 

EU integration  

On 27 November 2023, the inter-governmental State Commission on EU integration, chaired by the Prime 
Minister,  approved  an  action  plan  to  address  the  steps  defined  in  the  European  Commission’s 
Communication of 8 November 2023. Civil society organisations and opposition parties were not consulted 
during the process to develop the document. On 26 March 2024, the State Commission approved the 2024 
Action Plan for Georgia’s EU Integration.  

The Ministry of Foreign Affairs has a Directorate-General on European Integration. In Parliament, work 
on EU integration is coordinated by the Speaker.  

Governance  

The  relationship  between  the  President  and  the  government    was  further    strained  since  the  failed 
impeachment against the President by the ruling party in October 2023. The President consistently vetoed 
legislation she assessed as contrary to the EU integration process. The Parliament overruled her veto in all 
but one instance.   

The  capacity  of  local  self-government  was  strengthened,  in  line  with  the  2023-2026  strategy  on  public 
administration reform. The political culture for multi-party dialogue and coalition governance at local level 
needs to be improved. 

Civil society 

The legal framework for the activities of CSOs has significantly deteriorated as a result of the adoption of 
the Law on transparency of foreign influence. The Law creates a new legal framework that labels not-for-
profit organisations and media receiving foreign funding above certain thresholds as organisations pursuing 
the interests of a foreign power regardless of the actual activities performed by such entities. Such labelling 
of organisations under the Law severely undermines their financial stability, credibility and operations due 
to burdensome registration and reporting requirements, administrative fines and constant monitoring. The 
adoption of the law, notwithstanding repeated reassurances from the ruling party that this legislation would 
not be tabled, has spurred widespread condemnation and protests. In its opinion of June 2024, the Venice 
Commission strongly recommended to repeal the Law, as the Law’s restrictions on freedoms of expression, 
association and privacy are incompatible with international and European standards.   

Besides the chilling effect of the Law on CSOs, the enabling environment has also suffered from sustained 
incriminatory campaigns and verbal attacks emanating from political leaders and state institutions, aimed 
at discrediting leading watchdog CSOs, as well as individuals and civil movements. CSO representatives 
have increasingly been subjected to vandalism, intimidation, and physical assault. 

Mechanisms for policy dialogue and civic participation in policymaking and law-making, both at central 
and municipal level, are not operational. Georgia has yet to adopt a comprehensive government strategy for 
civil society support. Cooperation and the use of existing mechanisms decreased further and many CSOs 
were  de  facto  excluded  from  meaningful  involvement  in  consultations  and  decision-making  forums, 
including from deliberations on the implementation of the nine steps. In response to the adoption of the 

27 

 
 
Law on transparency of foreign influence, a significant number of Georgian CSOs officially suspended 
cooperation with the government and Parliament. Moreover, in June 2024 the majority of CSOs withdrew 
from the Open Government Partnership for which an action plan (2024-2025) was adopted in 2023. 

The enabling financial environment for CSOs is endangered by the new Law on transparency of foreign 
influence. Most CSOs, in particular at local level, are dependent on funding from foreign donors, and other 
means  for  ensuring  their  financial  sustainability.  According  to  the  law  organisations  could  face  severe 
financial repercussions. The requirements introduced by the law could cripple in particular smaller CSOs, 
while discouraging organisations from accepting international funds, including from the EU. A framework 
for  the  transparent  and  objective  distribution  of  public  money,  including  municipal  funds,  needs  to  be 
created.  

2.1.2. Public administration reform  

Strategic framework for public administration reform  

The strategic framework for public administration is in place. The quality and  effectiveness of the PAR 
strategy  is  satisfactory  and  the  policy  objectives  that have  been  set  provide  clear  directions  for  reform. 
Georgia continued to implement the 2023-2026 public administration reform strategy and its 2023-2024 
action plan. The implementation of the strategic framework would benefit from broader reform objectives 
in  some  areas,  including  civil  service  development,  accountability,  and  service  delivery.  The  reform 
management role of the PAR Council should be improved.  

In December 2023, Georgia adopted an action plan for 2023-2025 to improve the public accessiblity of data 
as part of the Open Government Partnership. The financial  sustainability of reforms needs to be ensured. 

Policy development and coordination  

The  institutions  and  the  regulatory  framework  for  central  government  policy  development  and 
coordination are in place. There has been some tangible progress in certain areas of policy development 
and coordination, especially in policy planning. However, the implementation of the system of regulatory 
impact  assessments  has  not  been  fully  incorporated  into  the  decision-making  process  to  improve  the 
evidence supporting the policies adopted by the government. Increased capacity constraints and high staff 
turnover have a negative impact on the quality of evidence-based policymaking, including in the central 
coordination unit within the government administration.   

Public financial management (PFM) 

Public financial management is broadly in place but needs to be improved. Implementation of the dedicated 
2023-2026 strategy, which covers all pillars of public finance, has contributed to the improved management 
of public finances. The foundation for managing public finances is solid, with greater transparency of public 
finances and the developing professionalisation of internal audit activities. The 2024 action plan adresses 
the relevant policy objectives and as a result, monitoring is being carried out effectively. The medium-term 
fiscal policy aims to sustain macro-fiscal stability by consolidating government revenues and maintaining 
planned expenditures within pre-defined thresholds. Budgetary demands should be met with an increased 
efficiency and effectiveness of public finance management (PFM) systems, making it possible to maintain 
a budget deficit and public debt within the limits set by fiscal rules. Programme budgeting needs to be better 
aligned  with  policy  and  operational  planning  needs.  The  transparency  of  public  finances  is  being 
maintained.  

Key  public  policy  documents,  including  the  state  budget,  contain  information  on  gender  gaps,  gender-
sensitive objectives and performance indicators. 

Despite continued  progress  on  PFM,  there  are  still  gaps  in  the management  of  state-owned  enterprises, 

28 

 
 
public assets inventory and valuation, internal financial control and auditing. 

Public service and human resources management  

The public service and human resources management still needs to be improved. The staff of a number of 
legal entities of public law (LEPLs) that develop and implement government policies, including regulatory 
functions, are not covered by the public service legislation. These institutions include, among others, the 
Civil Service Bureau (CSB), the Revenue Service of Georgia, and regulators on energy and water, aviation, 
transport, communications, and competition. 

Accountability of administration  

The  accountability  of  administrations  still  needs  to  be  improved.  Overall,  the  central  government  is 
organised in a coherent way. The PAR strategy and its 2023-2024 action plan include measures aimed at 
improving the accountability of the CSB towards the Public Service Council. As the Council is only an 
advisory body, political responsibility for the public service has not been clearly attributed. This continues 
to  limit  the  comprehensive  implementation  of  public  service  reforms,  including  the  clear  attribution  of 
political responsibility for the civil service. The fragmented legal framework needs to be further improved 
to ensure efficient and effective lines of accountability between supervisory and subordinated bodies. The 
Law on the LEPLs provides for discretion in the creation of the entities without a clear demarcation of 
functions with respect to ministries or other public bodies.  

The people’s right to good administration needs to be further strengthened. The rate of implementation of 
recommendations made by oversight bodies, including the Public Defender’s Office and the State Audit 
Office, remains low. In 2023, out of 263 recommendations issued by the Public Defender, only 11% were 
fully implemented by authorities, 19.8% were partially implemented and 52.5% were not implemented. 
Only 47% of recommendations by the State Audit Office were fully implemented, and 27% were partially 
implemented. A person’s right to seek compensation lacks systematic enforcement, including as regards 
the length of judicial proceedings in cases of administrative disputes. 

The enforcement of the right to access public information is limited as there are still legal gaps and 
LEPLs are not bound by the existing legislation on access to public information.  

Service delivery to people and businesses 

The delivery of services to people and business still needs to be improved. The number of digital services 
provided to people is increasing, but an overarching legal framework for these has not yet been developed. 
The governance of digital developments is not well organised, with different agencies driving their own 
initiatives and policy objectives. Georgia’s Public Service Development and PAR strategies noted several 
gaps  in  public  service  design  and  delivery,  including  in  the  consistency  of  the  governance  of  digital 
development, quality control and costing.  

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. 

Functioning of the judiciary 

Strategic documents 

29 

 
 
 
Although strategic documents are in place, key challenges in the justice system, in particular the need to 
strengthen the integrity of the highest judicial bodies, require greater effort. The adopted amendments to 
the Law on common courts address two key Venice Commission recommendations: the revision of the 
procedure  to  suspend  judges  from  office  (June  2023),  and  the  restriction  of  the  grounds  for  a  judge’s 
disciplinary liability (based on the violation by a judge of the principle of ‘political neutrality’) only to 
manifest violations of this principle. The May 2024 amendments also establish that all final court decisions 
must be published in an anonymised form on the relevant website and provide for the gradual renewal of 
members of the High Council of Justice (HCJ). Amendments did not address key recommendations on: (i) 
the transfer of judges without consent;  (ii) restricting the reappointment of HCJ members (including by 
fixed non-renewable terms); (iii) ensuring an effective appeal in the selection procedure for Supreme Court 
(SC) judges by clarifying that the SC’s decisions are binding; and (iv) ensuring an effective anti-deadlock 
mechanism. In addition, the May 2024 amendments reversed the previously addressed recommendation to 
introduce stricter qualification requirements for Supreme Court judges.  Amendments also include a new 
paragraph on the appointment of judges by two thirds of the full composition of the HCJ requiring only one 
lay member vote. This had previously been criticised by the Venice Commission as regards decisions on 
the disciplinary liability of judges. 

The  amendments  of  November  2023  to  the  Law  on  the  prosecution  service  address  issues  related  to 
prosecutorial  self-governance  in  the  recruitment  of  prosecutors.  Further  revisions  of  the  legislative 
framework for the appointment of the Prosecutor General are still outstanding.  

Management bodies 

The management bodies, the High Council of Justice and the Prosecutorial Council, are in place, however 
improvements are needed in terms of independence and neutrality. A broader, systemic reform of judicial 
institutions, with a main focus on the HCJ, the Supreme Court and the Prosecutor’s Office, remains to be 
implemented  with  a  view  to  ensuring  the  independence,  accountability  and  impartiality  of  the  justice 
system, in line with European standards. Outstanding issues regarding the composition, functioning and 
powers  of  both  management  bodies  in  line  with  European  standards  and  Venice  Commission 
recommendations, have not yet been addressed. In addition, the establishment of a system of extraordinary 
integrity  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 SC and court presidents, remains outstanding. In 2024, four SC judges were voted in by Parliament 
without addressing the recommendations mentioned above. In July 2024, the Tbilisi City Court suspended 
the decision of the President to appoint a new non-judge member to the HCJ, as well as prohibited the 
President  appoint  new  members  for  five  months.  The  decision  undermined  the  independence  and  the 
integrity (and the appearance thereof) of the HCJ.  

Independence and impartiality 

30 

 
 
The independence and impartiality of the judiciary are problematic in higher-level courts and need to be 
improved  in  the  courts  of first instance as  stated in 
Venice  Commission  opinions.  A  thorough  and 
comprehensive reform of the judiciary is needed, as 
in 
recommended  by 
particular to ensure integrity in the HCJ and the SC, 
to  improve  independence  and  impartiality  and  to 
increase public trust in the judicial system. The HCJ 
should develop a strategy for how it and the rest of 
the judiciary functions.  

the  Venice  Commission, 

The  Prosecution  Service  needs 
to  strengthen 
safeguards to protect the independence and autonomy 
of  prosecutors  and  the  Prosecution  Service,  in  line 
with EU and Venice Commission recommendations, 
which has so far not been done. On 18 July 2024, the 
Parliament  appointed  a  new  Prosecutor  General 
through simple majority, failing to implement a long-
standing  recommendation  of  the  EU  and  the  Venice  Commission  to  adopt  Constitutional  amendments, 
which would require a qualified majority in the selection process.  

Accountability 

The  accountability  of  the  judiciary  needs  to  be  improved.  There  are  still  challenges  in  the  effective 
implementation of the legislative framework and the rules on the accountability of judges and prosecutors.  

The  Independent  Inspector  of  the  HCJ  is  competent  to 
initiate  and  conduct  a  preliminary  examination  before 
disciplinary  proceedings  for  judges,  while  the  HCJ 
conducts disciplinary proceedings, and can suspend and 
dismiss judges. In 2023, the percentage of HCJ decisions 
on 
the 
recommendations  of  the  Independent  Inspector  fell  to 
69% (from 87% in 2022). In June 2023, the Independent 
Inspector resigned and was replaced by the HCJ with a 
former  member  of  the  HCJ  through  a  process  which 
lacked transparency.  

disciplinary  matters 

followed 

that 

Graph 3: Georgia - Disciplinary 
procedures - 2023

100

80

80

50

0

28

22

9

0

Judges

Prosecutors

Initiated

Completed

Sanctions pronounced
Source: CEPEJ

As regards prosecutors, the concentration of powers in the Office of the Prosecutor General (appointed 
politically  by  a  simple  majority  in  Parliament)  is  very  high.  The  Prosecutor  General  decides  on  the 
disciplinary  proceedings  for  prosecutors,  while  the  Prosecutorial  Council  is  only  competent  to  issue 
recommendations and decide on the disciplinary proceedings of the Deputy Prosecutors General and the 
members of the Prosecutorial Council. 

On  12 January 2024,  the  independent  commission  created  by  the  Anti-Corruption  Bureau  selected  300 
officials, including 27 judges, whose asset declarations would be subject to monitoring in 2024. In April 
2024, Tbilisi City Court suspended the process of monitoring the asset declarations of four judges.  

The transparency of the HCJ is deteriorating with no decisions or minutes published during the reporting 
period. Public participation and access to court decisions are increasingly limited.  

Quality of justice 

31 

 
 
More effort should be made to improve the quality of justice and to further align with EU standards and 
best  practices  on  effective  and  efficient  administration  of  justice,  including  the  use  of  Council  of 
Europe/CEPEJ tools. 

Court, 

Budgetary  allocations  for  the 
the 
Constitutional 
Supreme Court and the common 
courts  have  been 
increasing 
since  2022  and  the  total  budget 
allocated  to  the  judiciary  has 
been steadily increasing over the 
past years. However, the overall 
budget of the Georgian judiciary 
is  still  below  the  EU  average, 
and challenges remain regarding 
judges  and 
the  number  of 
for 
prosecutors, 
prosecutors, 
judges 
and 
for 
backlogs,  and  a  need 
continued  modernisation 
of 
including 
court  management 
through implementation of new cyber justice tools and full application of the court case management system 
for automatic case allocation. Only 62% of the cases were allocated by the court case management system.  

vacancies 

The  effective  implementation  of  transparency  standards  needs  to  be  addressed.  Despite  a  new  legal 
provision  that  entered  into  force  in  January  2024,  which  requires  the  judicial  authorities  to  publish  a 
depersonalised version of a judicial act online once the final court decision has taken effect, open access to 
reasoned  court  decisions  remains  a  challenge.  The  Supreme  Court  ensured  proactive  access  to  the 
anonymised texts of its decisions, but other courts did not 
publish their decisions on a designated website. Access to 
court decisions via freedom of information requests was 
only  partially  implemented.  The  May  2024 amendments 
introduced  a requirement that judicial  decisions must  be 
the 
made  public  upon 
transparency  of  HCJ  sessions  and  decisions  further 
deteriorated during the reporting period. 

Graph 5: Georgia - Alternative 
dispute resolution - 2023

their  adoption.  However, 

500

300

248

200

400

109

389

100

0

for 

Mediators

is  a  need 

improvement 

Finalised
mediations

Settlement
agreements

terms  of 
There 
interoperability of IT platforms across the penal chain, as 
well  as  increasing  judges'  referrals  to  mediation  and 
ensuring  reliable  and  accurate  statistical  data  collection. 
The  integrated  case  management  system  in  place  would 
benefit  from  the  introduction  of  a  statistical  element. 
Court-related mediation procedures are available. The quality of justice is negatively affected by the high 
caseload, causing delays in cases and ineffective management of backlogs in the common courts system. A 
structured system for the evaluation of judges is not in place. More generally, more efforts are necessary to 
digitalise the justice system, especially when it comes to decision support. 

Mediation cases

Source: CEPEJ

in 

Further improvements to the judicial training system remain necessary. Training and the exchange of best 
practices  should  be  further  developed,  in  particular  on  the  use  of  indirect  evidence,  asset  recovery  and 
financial investigations.  

The high number of vacancies in judicial position remains a challenge. 

32 

 
 
Efficiency 

Georgia is taking steps to increase the efficiency of its judicial system.  

At the level of courts of first instance, the disposition time (the time a judicial system takes to resolve a 
case)  in  civil  and  commercial  cases  increased  to  325  days  compared  with  257  days  in  2022.  For 
administrative  cases,  the  disposition time  increased  to  633  days  in  2023  against  529  days  in  2022.  For 
criminal cases, the disposition time was 144 days in 2023, up from 132 days in 2022. 

The clearance rates for civil and commercial cases in all courts remained at a high level in 2023. For civil 
and commercial cases in 2023 it was 97% in courts of first instance (101% in 2022), 101% in appellate 
courts and 100% at the Supreme Court.  

The backlog of pending criminal cases increased to 7 079 in 2023 (6 536 in 2022) at first instance and was 
721 (784 in 2022) at second instance (courts of appeal). For civil and commercial cases, the number of 
pending cases at first instance was 66 098 in 2023 (63 969 in 2022).  

The  Constitutional  Court  had  186  pending  constitutional  cases  as  of  13 June 2024  (284  as  of 
31 December 2022) and its clearance rate in 2023 was 213%, compared with a clearance rate of 84% in 
2022 and 50% in 2021. In 2023 there was a total of 44 registered complaints or submissions, out of which 
only one was submitted by a common court. This confirms the trend registered in 2022 (two complaints). 

Fight against corruption  

Track record  

The track record of the fight against corruption has remained consistent overall but has been weak on high-
level corruption. 

33 

 
 
   
 
As regards the investigation, prosecution, and final conviction of corruption cases, notably of high-level 
corruption cases, in 2023 twelve high-level officials were prosecuted (seven in 2022) and four officials 
were convicted for corruption (six in 2022). 

Detailed  statistics  on  the  detection,  investigation,  prosecution  and  adjudication  of  corruption  cases, 
especially high-level corruption cases, are not publicly available. Public communication and accountability 
as regards cases of alleged high-level corruption need to be strengthened. 

The  recommendations  of  the  Council  of  Europe  Group  of  States  against  Corruption  (GRECO)  on 
preventing corruption in respect of judges still need to be fully implemented. 

Institutional framework  

The institutional framework on the fight against corruption is in place, but needs to be improved as regards 
both  preventive  measures  and  law  enforcement.  The  organisational  set-up  and  powers  of  the  Anti-
Corruption  Bureau  (ACB)  do  not  provide  for  a  sufficient  degree  of  independence,  as  key  Venice 
Commission  recommendations  related  to  the  institution’s  independence,  its  political  neutrality  and 
investigative  functions  on  high-level  corruption  cases  have  yet  to  be  adequately  addressed.  The  ACB 
continued to strengthen its operational capacities in terms of specialised training for its staff, its financial 
resources and by developing guidelines on risk assessment. Since September 2023, the ACB has monitored 
the asset declarations of 220 officials, of which 23 cases of incompatibility of duties and conflicts of interest 
were  identified.  Following  a  transfer  of  functions  from  the  State  Audit  Office,  the  ACB  also  started 
monitoring political party financing in September 2023.  

The ACB signed a memorandum with the Legal Aid Service and the Bar Association on whistle-blower 
protection in November 2023. To date, the ACB has received 37 statements or complaints from whistle-
blowers.  

Georgia  lacks  dedicated  and  autonomous  entities  in  law  enforcement,  the  prosecution  services,  or 
specialised courts to fight corruption, and it also does not have a stand-alone specialised body in charge of 
investigating and prosecuting high-level corruption. The ACB does not perform investigations. The powers 
/ competences to investigate corruption are currently shared by four institutions, namely the Prosecution 
Service,  the  State  Security  Service,  the  Ministry  of  Justice,  and  the  Ministry  of  Finance,  resulting  in  a 
fragmented structural approach and repercussions on enforcement.  

Strategic documents  

Strategic documents, such as a strategy to prevent corruption, and policy documents on risk assessment and 
prevention of conflicts of interest have not been developed and published.  Moreover, an anti-corruption 
strategy for the police and a targeted corruption-risk approach for law enforcement agencies have not yet 
been produced. Georgia should follow up on all recommendations of GRECO’s Fifth Evaluation Round. 

34 

 
 
 
There has been some progress on the implementation of the de-oligarchisation action plan adopted by the 
government  in  November  2023.  The  plan  lacks  ambition  and  does  not  provide  a  regular  consultation 
mechanism with all Parliamentary parties and civil society. The distribution of tasks and timelines remain 
overly broad. 

Legal framework 

The current legal framework on the fight against corruption  needs to be improved as regards preventive 
measures and law enforcement. The legal framework of the ACB needs to be revised to provide it with 
sufficient operational independence. In May 2024, Parliament adopted amendments on strengthening the 
ACB, addressing several Venice Commission recommendations, including on immunity for the head of the 
ACB, budgetary independence, provisions on personal data protection, and stronger protection of whistle-
blowers.  The  amendments,  however,  fail  to  address  key  Venice  Commission  recommendations,  in 
particular those related to the ACB’s independence, political neutrality and investigative functions in high-
level corruption cases.  

The May 2024 amendment to the Law on the fight against corruption, which extends the scope of the asset 
declaration  regime  to  all  prosecutors,  is  a  positive  development.  Prosecutors,  who  were  previously  not 
subject to the declaration regime, have now submitted asset declarations to the ACB. 

In April 2024, the Parliament passed amendments to the tax code, using an expedited procedure, which 
allow the tax-free transfer of assets from enterprises in tax havens to Georgian entities. The exemption of 
foreign-sourced income is not aligned with international best practice and poses potential risks of money 
laundering. 

More  efforts  are  needed  to  increase  the  efficiency  and  effectiveness  of  the  relevant  law  enforcement 
investigation units, which still lack autonomous powers and safeguards for their independence to prevent 
risks of undue political influence.  

Georgia should follow up on the recommendations of the OECD/ACN Fourth Round of Monitoring of the 
Istanbul  Anti-Corruption  Action  Plan  to  remove  anti-corruption  investigative  powers  from  the  State 
Security  Service  and  the  Prosecutor’s  Office,  and  to  address  the  concentration  of  investigation  and 
prosecution functions within the Prosecutor’s Office. 

Fundamental rights  

General framework 

The general framework for fundamental rights needs to be improved. Following the adoption of the strategy 
on the protection of human rights 2023-2030, the action plan 2024-2026 was approved in December 2023. 
The consultation process was limited and only a few comments from civil society were incorporated. The 
action plan and the strategy do not mention the rights of LGBTIQ persons.  

International human rights instruments  

Georgia has ratified all the major European and international human rights instruments. It has not ratified 
the  International  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.  

European Court of Human Rights  

35 

 
 
Georgia continues to ensure good cooperation with 
the European Court of Human Rights (ECtHR) but 
faces some delays in implementing its judgments. 
During the reporting period, the European Court of 
Human Rights (ECtHR) found Georgia in breach 
of the European Convention on Human Rights in 
cases relating mainly to the right to life, the right 
to a fair trial, the prohibition of torture, the right to 
respect for private and family life, prohibition of 
discrimination,  as  well  as  freedom  of  thought, 
conscience and religion.   

1000

100

10

1

Graph 8: Georgia - ECtHR judgments 

179

188

172

49

20

14

2

2

New
allocated
applications

Judgments

Breaches

Pending
applications

Currently,  there  are  36  cases  under  enhanced 
supervision  by 
the  Committee  of  Ministers 
(including many repetitive) related mainly to right to life and protection against torture as well as a lack of 
protection of LGBTIQ persons and religious minorities. It is essential for Georgia to address systemic or 
structural issues raised by the Court, notably regarding the justice system, penitentiary and law enforcement 
systems  and  the  protection  from  discrimination,  and  to  ensure  systematic  enforcement  of  ECtHR 
judgements.  

16.06.2022 - 15.06.2023

16.06.2023 - 01.09.2024

Source: ECtHR

The legal package of October 2022 aimed at enabling Georgian courts to proactively take into account the 
judgments and decisions of the ECtHR was partially implemented. Georgia’s Bar Association, the High 
School  of  Justice  and  the  Prosecutor’s  Office  revised  access  exams  and  training  curricula  to  support 
professional development of judges, prosecutors and defence lawyers and to raise the quality of reference 
to ECtHR decisions in their work. The setting up of new organisational units in the common courts’ system 
for analysing ECtHR decisions remains to be fully implemented, also through enhanced supervision and 
quality monitoring.  

Promotion and enforcement of human rights  

of 

human 

policies 

The  legal  and  institutional 
framework  on  fundamental 
rights is largely in place. The 
the 
implementation 
rights 
existing 
legislation, 
and 
action  plans  needs  to  be 
improved.  The  main  gaps 
on 
the 
include 
administrative 
offences 
allowing  for  arbitrary  law 
enforcement  activities  and 
for 
procedural  guarantees 
defendants, 
wide 
prerogative 
to  use  secret 
surveillance  under  the  Law 
on  counterintelligence  and 
the  Law 
criminal 
procedures,  as  well  as  the 

Law 

the 

on 

lack of legislation regulating homelessness and the right to adequate housing.  

To a certain extent, the 2024-2026 action plan for the strategy on the protection of human rights broadly 
aligns with Georgia’s international obligations and proposes concrete actions such as developing a new 

36 

 
 
Code of administrative offenses, refining the Law on public service to advance employment opportunities 
for  persons  with  disabilities,  introducing  activities  on  the  right  to  housing  for  vulnerable  people. 
Implementation of the action plan has not yet begun, and monitoring of implementation has not been clearly 
defined.   

The  Public  Defender’s  Office  (PDO)  remains  a  crucial  institution  to  supervise  the  protection  and 
implementation  of  Georgia’s  human  rights  obligations.  The  PDO  continues  to  carry  out  its  mandate 
satisfactorily, including as regards the national preventive mechanism, the anti-discrimination mechanism 
and  the  mechanism  to  monitor  the  rights  of  persons  with  disabilities.  In  2023,  the  PDO  issued  80 
recommendations to the authorities, and several reports and communications, but the implementation of its 
recommendations  to  state  authorities  remains  limited.  The  PDO  has  sufficient  financial  and  staffing 
resources to perform its duties. In 2024, funding for the PDO increased compared with 2023 (by around 
EUR 4 million).  

Prevention of torture and ill-treatment 

ill-treatment 

Prohibition  of 
is 
torture  and 
enshrined in the Constitution. Allegations of ill-
treatment 
in  detention  centres  were  not 
sufficiently  followed  up.  The  recommendations 
issued 
the  European 
Committee  for  the  Prevention  of  Torture  and 
Inhuman or Degrading Treatment or Punishment 
regarding  medical  treatment,  healthcare  and 
living conditions  of  detainees at the  VivaMedic 
Clinic remain  to  be fully  addressed.  The  Public 
Defender  visited  detainees  at  the  Clinic in  June 
2024 and reported no cases of dissatisfaction with 
the methods or quality of treatment from any of 
the detainees. Violations of detainees’ rights, the 
situation in mental health institutions, overcrowding and delays in responding to medical needs of prisoners 
remain a challenge.  

in  January  2024  by 

The  functioning  of  the  National  Preventive  Mechanism 
(NPM)  is  satisfactory,  however  the  follow-up  to  its 
recommendations  remains  very  inadequate.  The  NPM 
highlights  the  fairly  high  number  of  applications  and 
complaints  about  alleged 
incidents  of  physical  or 
psychological  violence  committed  against  prisoners  by 
officers of the Special Penitentiary Service. Overall, there 
has  been  no  significant  improvement  in  the  treatment  of 
detainees  during 
in 
psychiatric institutions are not fully protected from violence 
and inhumane or degrading treatment. The NPM received 
reports of both physical and psychological violence at the 

reporting  period.  Patients 

the 

hands of members of staff. 

Issues  raised  in  the  previous  reporting  period  regarding  protection  gaps  in  the  Code  of  Administrative 
Offences, including insufficient safeguards, the lack of clarity about standards of proof, and the absence of 
a meaningful right to appeal detention decisions, have not been addressed during the reporting period. The 
availability of support and redress mechanism for victims can be hindered in part in cases when a decree is 
issued by the Prosecutor’s Office that prohibits convicts from contacts, including with defence attorneys. 

37 

 
 
The  PDO  has  received  numerous  reports  of  police  officers  using  disproportionate  and  excessive  force 
during  detentions,  as  well  as  allegations  of  ill-treatment  following  detentions.  In  particular,  during  the 
public  rallies  in  April  and  May  of  2024,  numerous  allegations  of  physical  violence  and  verbal  abuse 
perpetrated by law enforcement officers emerged, as well as images of beaten-up demonstrators and civil 
society activists. According to the Public Defender, more than half of the people detained at the rallies have 
received improper treatment by law enforcement officials. The Special Investigation Service has received 
138 reports of possible illegal actions by law enforcement. Of these, only ten people were granted victim 
status by the Prosecutor’s Office. The Special Investigation Service has not released information about the 
findings of the investigations.   

Amendments to the Law on the special investigation service, adopted in May 2024, only partially addressed 
Venice Commission recommendations. 

Execution of criminal sanctions  

The legal framework on criminal penalties is largely in line with relevant European standards. The system 
for implementing non-custodial and probation measures functions well. Contrary to international standards, 
data on the average duration of pre-trial detentions are not collected. A new penitentiary code was adopted 
in December 2023, introducing some novelties based on recommendations made by the Public Defender. 
Complaints  persist  about  overcrowding,  informal  management  practices  and  the  quality  of  medical 
treatment.  

Efforts to reduce the prison population need to progress, as the country remains in the top five European 
countries as regards the incarceration rate (267 per 100 000), while the occupancy rate stood at around 82% 
(9 868 inmates) in December 2023.  

The use of excessive force and physical and psychological violence by law enforcement officers needs to 
be addressed.  

Protection of personal data  

Despite  the  adoption  of  the  Law  on 
personal  data  protection  of  June  2023, 
amended  in  May  2024,  personal  data 
protection 
in  Georgia  is  not  fully 
aligned with the EU acquis (Regulation 
(EU)  2016/679  and  Directive  (EU) 
2016/680).  Georgia  has  not  yet  signed 
the  Council  of  Europe  data  protection 
Convention  108+.  The  Personal  Data 
Protection  Service,  created  in  March 
2022,  continues  to  do  a  generally 
the 
satisfactory 
lawfulness of data processing and activities carried out at the central database for electronic communication 
identification  data,  but  it  needs  to  take  a  more  active  role,  in  particular  as  regards  monitoring  covert 
investigations.   

job  of  monitoring 

Freedom of religion or belief  

Freedom  of  thought,  conscience  and  religion  is  generally  upheld.  The  discriminatory  legal  provisions 
pertaining to various religious associations, alleged hate crimes committed on religious grounds, and the 
issuing of a construction permit to build a place of worship remain a challenge. The ECtHR judgment of 
30 November 20234  found  that  Georgia  had  violated  the  provisions  on  freedom  of  religion  under  the 

4 Case of Georgian Muslim Relations and Others v. Georgia, application no 24225/19. 

38 

 
 
 
European Convention on Human Rights. The government’s human rights action plan 2024-2026 partially 
addresses freedom of religion or belief.  

Freedom of expression  

Protection of journalists 

Cases of threats, intimidation, hate speech and violence against journalists have increased. In the reporting 
period, particularly following the introduction of the Law on transparency of foreign influence, verbal and 
physical  attacks  against  journalists  and  media  professionals  have  increased,  smear  campaigns  have 
continued,  including  by  high-level  politicians.  The  use  of  strategic  lawsuits  against  public  participation 
(SLAPPs) has also increased. There are over 40 ongoing defamation cases against CSOs, media outlets and 
public watchdogs in national courts. Of these, 38 cases are against media outlets or journalists. The use of 
SLAPPs has slightly increased. Three new SLAPP cases were initiated during the reporting period and the 
Council of Europe Platform for the Protection of Journalism and Safety of Journalists received 32 alerts of 
violence  and  threats  of  violence  against  journalists.  The  protection  and  safety  of  journalists  and  media 
professionals is not sufficiently ensured and should be improved by aligning with Directive (EU) 2024/1069 
on protecting persons who engage in public participation from manifestly unfounded claims or abusive court 
proceedings (‘Strategic lawsuits against public participation’) and implementing Commission recommendation 
(EU)  2021/1534  on  ensuring  the  protection,  safety  and  empowerment  of  journalists  and  other  media 
professionals.  

Legislative environment  

The Law on transparency of foreign influence and the legislative package on “Family values and protection 
of minors” restrict freedom of expression and may jeopardise media freedom.  

In  October  2023,  the  Parliament  adopted  amendments  to  the  Law  on  broadcasting,  enabling  the 
Communication  Commission  (ComCom)  to  intervene  on  hate  speech,  incitement  to  terrorism,  and 
obscenity.  

Institutions and implementation of legislation  

The  effective  independence  and  impartiality  of  ComCom  has  been  improved  with  the  latest  legal 
amendments.  Effective  implementation  of  the  amendments  needs  to  be  guaranteed  to  restore  trustful 
relations with stakeholders. The stated aims and objectives of the 2022-2030 human rights strategy include 
freedom  of  expression,  the  freedom  and  pluralism  of  media,  and  non-interference  in  the  professional 
activities of journalists. 

Public service broadcaster  

The amendments to the Law on broadcasting, adopted in December 2023, introduced changes to how the 
Georgian public broadcaster is funded that risk jeopardising its independence and impartiality. The budget 
was reduced in agreement with the broadcaster’s board of trustees, and the number of members and their 
tenures were increased.  

Economic factors 

There are no economic factors affecting pluralism, market access restrictions, or state advertising rules on 
private media,  however,  political  affiliations influence  media  ownership.  There are  no legal  restrictions 
imposing prohibitive taxes or levies or other forms of economic sanctions or market restrictions. The media 
market is governed by the Law on competition, which stipulates that the relevant cases should be considered 
by ComCom, with inputs from the National Competition Agency. 

Internet  

Internet provision generally functions without undue restrictions.  

Professional organisations and working conditions 

39 

 
 
Georgian  journalists  and  media  outlets  are  represented  by  several  membership-based,  professional 
associations and organisations. There is limited dialogue between the government and media professional 
bodies. Enforcement of the 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, but their effectiveness is limited. Downsizing and delays in salary payments are frequent. Staff 
turnover is high across newsrooms, especially among regional media. 

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

Freedom of assembly and association  

There are serious concerns about the exercise of the right to freedom of assembly and association and the 
right to peaceful protest, as seen during the violent attacks against participants in protests in 2023 and 2024. 
Amendments to the Law on assemblies of October 2023 impose disproportionate restrictions on freedom 
of assembly. The Code of Administrative Offences continues to be used to arbitrarily detain and financially 
punish protesters and organisers. In October 2023, Parliament passed amendments to the Law on assemblies 
regulating the setting up of temporary constructions during demonstrations. The amended law restricts the 
right to freedom of peaceful assembly and is not in line with requirements under international law. The 
adoption of the Law on transparency of foreign influence further limits the freedoms of association and 
expression.   

Labour and trade union rights are covered in Chapter 19 - Social policy and employment. 

Property rights  

Georgia has legislative guarantees on property rights in place. The process of the initial registration of land 
through the cadastral system has not been completed. 

Non-discrimination  

The  legal  and  institutional  framework  is  partly  aligned  with  the  EU  acquis  and  European  standards. 
Georgian  legislation  is  partially  aligned  with  the  Racial  Equality  Directive  2000/43/EC  and  legislation 
partly follows recommendations set out in the EU 2020-2025 anti-racism action plan. There is room for 
improvement on enforcement of the Georgian Law on the elimination of all forms of discrimination, on 
tangible actions to improve the situation of vulnerable groups and on the alignment with the 2008/913/JHA 
Framework  Decision  on  combating  racism  and  xenophobia.  Enforcement  still  needs  substantial 
improvement, in particular with regard to the rights of LGBTIQ persons, and people from, ethnic, national, 
and religious minorities. Hate speech towards vulnerable groups remains largely unaddressed, and cases of 
hate crimes and discrimination are not investigated and prosecuted effectively. Hate speech, incitement to 
discrimination in public discourse and media, including by politicians, remains a serious challenge. In June 
2024,  the  Public  Defender  criticised  discriminatory  statements  by  politicians  and  high-ranking  officials 
against  persons  with  disabilities  and  called  for  the  government  to  take  measures  against  continued 
stigmatising and discriminatory attitudes. 

In  October  2023,  the  Parliament  amended  the  Law  on  broadcasting  and  prohibited  the  broadcast  of 
programmes or advertisements involving incitement to violence or hatred (hate speech) against a person or 
a group of persons on the grounds of, for instance, his/her or their disability, ethnic or social origin, gender, 
sex, race, religion or faith, sexual orientation or skin colour. Following the amendments, the legislation is 
now broadly in line with the main principles enshrined in the Audiovisual Media Services Directive.  

The Public Defender reports that incitement to discrimination and use of hate speech remains a significant 
challenge. It criticised Parliament’s Code of Ethics, stating that it does not provide for effective or efficient 
mechanisms against the use of hate speech. The recommendations made by the Public Defender’s Office 
to counter discrimination and hate speech have not been addressed during the reporting period. There were 
1 218 prosecutions related to hate crimes and 756 of these led to convictions during the reporting period. 

40 

 
 
The challenges related to the investigation and criminal prosecution of alleged hate crimes, highlighted in 
the Commission’s previous reporting and by the Public Defender’s Office, persisted in 2023 and 2024.  

Gender equality  

n/a

n/a

n/a

253

809

155

Police reports

800
700
600
500
400
300
200
100
0

Graph 13: Georgia - Violence against women 
(including domestic and sexual violence)

The  legal  and  institutional  framework 
remains  partially  aligned  with  the  EU 
acquis  and  European  standards.  No 
progress  was  made  to  fully  align  the 
legal  framework  with  the  Istanbul 
Convention  and  further  efforts  are 
needed  to  address  recommendations 
made in the 2022 report of the Group of 
Experts  on  Action  against  Violence 
against  Women 
and  Domestic 
Violence  (GREVIO).  Implementation 
of 
the  national  action  plan  on 
combating violence against women and 
domestic  violence,  measures  from 
2022  to  2024  for  the  protection  of 
victims  /  survivors,  and  the  national 
action plan for implementing the UN Security Council resolution on Women, Peace and Security (2022-
2024) is satisfactory. State support and protection services supporting victims of gender-based violence and 
domestic violence are in place and were strengthened during the reporting period.  In January 2024, the 
government  approved  a  resolution  on  increasing  inter-institutional  coordination  to  support  victims  of 
violence  and  prevent  re-victimisation.  Further  capacity  building,  procedural  improvements,  awareness-
raising activities and action to combat gender stereotypes are needed. Weaknesses remain with the effective 
implementation of gender equality as part of the strategic framework on human rights. 

Violence against women
2021
2023
2022
Source: Administration of the Governement of Georgia

Final criminal
convictions

Femicides

n/a: not available

10

4

9

The State concepts on gender equality (2022) and on the economic empowerment of women (2023) lack 
implementation  mechanisms.  Mandatory  gender  impact  assessment  for  all  legislative  acts  was  partially 
implemented with a gender impact assessment of the Law on public service. Gender equality as a cross-
cutting issue is not sufficiently integrated in general or sectoral policy documents. 

The number of reported cases of gender-based violence and domestic violence, especially sexual violence, 
has increased. Ethnic minorities, refugees and asylum seekers, and LGBTIQ persons are at greater risk of 
violence but at the same time face additional barriers to reporting. The rate of femicide cases remains high 
and prevention and the response to cases need to be improved. 

In  April  2024,  Parliament  abolished  quotas  for  women’s  participation  in  elections,  which  undermines 
previous efforts to ensure gender equality. There are women mayors in only 3 out of 64 municipalities.  

Rights of the child  

The legislative framework is largely in place but is not fully aligned with international standards. The 2024-
2026 action plan for the protection of human rights includes the key area of the protection of children’s 
rights, but lacks specific actions, timeframes and budget to create an integrated child protection system. 
The implementation of the Code of the Rights of the Child remains a challenge, including for child welfare. 
Implementation of the child-friendly justice reform, in accordance with the Juvenile Justice Code and the 
Code on the Rights of the Child, is still outstanding. 

Violence against children remains a challenge despite some positive signs in 2023 with 1 564 reported cases 
of child abuse (compared with 4 133 in 2022, and 1 904 in 2021). The main concerns are: (i) insufficient 
procedures and policy measures to address violence against children in families, residential care, foster care 
and educational institutions; (ii) gaps in the national legislation to protect child victims of sexual violence 

41 

 
 
and abuse, including in the definition of rape; (iii) limited reporting; (iv) the lack of timely detection of 
sexual violence against children; (v) the limited response to reported and detected cases; and (vi) limited 
rehabilitation  services  for  child  victims.  In  June  2024,  the  UN  Committee  on  the  Rights  of  the  Child 
concluded  that  Georgia  had  violated  its  child  rights  obligations  by  failing  to  take  immediate  action  to 
address the frequent physical and psychological abuse of children who lived in an orphanage run by the 
Georgian Orthodox Church (the Ninotsminda case).  

Significant  progress  was  made  in  deinstitutionalisation  with  the  closure  of  large  institutions.  Concerns 
remain  around  small  group  homes  and  the  significant  number  of  children  residing  in  non-licensed 
residential care institutions, including religious ones. New measures are needed to ensure adequate support 
services, in particular for children with disabilities, and to provide comprehensive support to the families 
concerned.  

The elimination of child marriage remains a challenge. In 2023, the Ministry of Internal Affairs reported 
152 cases of child marriage. According to 2023 research, 37.8% of Georgian children are considered to 
have  material  and  social  disadvantages.  The  number  of  children  registered  in  the  Unified  Database  of 
Socially Vulnerable Families increased by 5.2% between 2022 and 2023. 

Persons with disabilities  

Despite a comprehensive legal framework, the practical realisation of the rights of persons with disabilities 
has  not  seen  a  significant  improvement  during  the  reporting  period.  Georgia  needs  to  ensure  full 
implementation  of  the  provisions  of  the  United  Nations  Convention  on  the  Rights  of  Persons  with 
Disabilities  (UNCRPD).  Persons  with  disabilities  face  significant  challenges  when  it  comes  to  health 
services,  education,  and  institutional  care  services.  The  standards  set  by  the  National  Accessibility 
Standards are not effectively implemented. Certain positive steps were taken during the reporting period to 
implement  the  2023-2030  strategy  for  independent  living  and  deinstitutionalisation  of  persons  with 
disabilities and the 2023-2025 action plan. Challenges remain regarding the effective implementation of 
the deinstitutionalisation programme. In September 2023, Georgia amended the Law on patient’s rights, 
the Law on healthcare, and the Law on medical practice to improve the privacy of persons with disabilities, 
prevent discrimination based on disability, ensure confidentiality and guarantee informed consent. In line 
with the National Strategy on Independent Living and De-institutionalising Persons with Disabilities 2023-
2030, new services of home care and personal assistance were provided at municipal level as from 2024. 

The  Law  on  general  education  was  amended  in  November  2023  to  consolidate  the  responsibility  for 
coordination and implementation of inclusive education reform under the Office of the Resource Officers 
of Educational Institutions. Enrolment in mainstream schools of children with disabilities and special needs 
increased in the 2023-2024 school year, reaching 12 801 students. 

LGBTIQ persons  

No progress was made in addressing the rights of lesbian, gay, bisexual, transgender, intersex and queer 
(LGBTIQ) persons, who continued to experience systemic violence, abuse, intolerance and discrimination. 
Homophobic  rhetoric,  including  from  high-level  officials,  increased  during  the  reporting  period.  The 
authorities fail to recognise and acknowledge the systemic nature of discriminatory patterns and inequalities 
affecting LGBTIQ persons and there are no concrete measures to support them, or to combat discrimination 
based on sexual orientation or gender identity. 

In September 2024, Parliament adopted a legislative package consisting of the Law on family values and 
protection  of  minors and  eighteen amendments to existing laws.  The legislation  directly  infringes  upon 
fundamental rights and promotes a hostile environment, stigmatisation and discrimination against sections 
of the Georgian population. On 3 October, the Speaker of the Parliament signed into law the bill titled ‘On 
the Protection of Family Values and Minors’, following the President's refusal to either sign it or veto it. 
The legislative package was adopted without proper and broad consultations and a thorough analysis of its 
compliance with European and international standards. Moreover, a draft Constitutional Law on protecting 

42 

 
 
family values and minors registered in Parliament by the ruling majority in April 2024 remains pending. 
The Venice Commission issued an opinion in June 2024 recommending the Georgian authorities to entirely 
reconsider the draft Constitutional amendments on “family values and protection of minors” tabled in April.  

The national strategy for the protection of human rights for 2023-2030 and the action plan 2024-2026 do 
not address the rights of LGBTIQ persons. The government has yet to present a plan on how to implement 
the European Court of Human Rights ruling of December 2022 to introduce fast, transparent and accessible 
procedures for changing the gender marker in the identity document. 

The investigations of the organisers of violence at the July 2021 Pride and the Pride in 2023 have not been 
concluded. The 2024 Pride did not take place due to fears of reprisals and violence. 

Procedural rights and victims’ rights  

Procedural rights are protected by the Constitution and the legal framework is generally in line with the EU 
acquis and international standards.  

Free  legal  aid  to  victims  of  crime,  suspects  and  accused  is  provided  by  the  Legal  Aid  Service  and  is 
generally  delivered  effectively  by  legal  aid  bureaux  and  consultation  centres  with  a  wide  geographical 
coverage.  

Protection of minorities 

Ethnic minorities continue to face issues as regards access to quality education and public services, civic 
participation and employment in the civil service. Political representation of ethnic minorities remains a 
significant challenge in terms of both participation and the absence of regular consultative bodies at both 
national  and  local  level.  The  national  strategy  for  the  protection  of  human  rights  2022-2030,  the  state 
strategy for civic equality and integration (2021-2030) and the 2023-2024 action plan address civic equality 
and the inclusion of ethnic minorities. There are significant gaps in the human rights action plan 2024-2026 
and  the  strategic  framework  as  regards  the  protection  of  minority  rights  including  representation  of 
minorities.  

Roma  

There is no specific legislative framework to address Roma5 issues due to the small number of Roma, Lom 
and Dom residing in Georgia. The Roma communities continue to be one of the most discriminated ethnic 
groups and suffer from more limited access to housing and government services and experience literacy 
problems that impact children’s education. 

2.2.2 

Chapter 24: Justice, freedom and security   

The EU has common rules for border control, visas, external migration and asylum. Schengen cooperation 
entails the lifting of border controls inside the EU. There is also cooperation in the fight against organised 
crime and terrorism, and judicial, police and customs cooperation. 

Fight against organised crime  

Georgia has continued to work on aligning its legal framework on organised crime with the EU acquis. 

Institutional set-up and legal alignment  

The relevant legal framework is partially aligned with the EU acquis. Further alignment is needed in the 
areas of fighting trafficking in human beings and smuggling of migrants, confiscation of criminal assets, 

5 In line with the terminology of the European institutions the umbrella term ‘Roma’ is used here to refer to a number of different 

groups, without denying the specificities of these groups. 

43 

 
 
 
legislation on the interception of communications and legislation on the fight against financial crime and 
money laundering, including by introducing a register of ultimate beneficial owners.  

Georgia needs to establish a proper and dedicated asset recovery office in line with European standards and 
an  assets  management  office.  Georgia’s  Financial  Monitoring  Service  (serving  as  financial  intelligence 
unit)  needs  continued  strengthening  of  its  analytical  and  IT  capacity  for  data  processing  and  financial 
analysis, to face increasing challenges such as the circulation of cryptocurrencies. Georgia remains only 
partly  compliant  with  the  Financial  Action  Task  Force  recommendation  on  independent  financial 
investigation units/financial intelligence units. 

Georgia  should  endeavour  to  develop  a  comprehensive  and  intelligence-led  approach  to  combatting 
organised and serious crime, through a better intelligence picture on high-risk criminal networks, in line 
with the Council Conclusions on mapping the most threatening criminal networks of June 2024. 

Implementation and enforcement capacity  

Despite  an  overall  increase  in  the  number  of  criminal  investigations,  the  number  of  convictions  for 
organised crime remains relatively low and has slightly declined.  

Close cooperation between Georgian and EU Member States’ law enforcement bodies resulted in the arrest 
of 52 citizens of Georgia and 2 ‘thieves-in-law’ in the context of 8 joint operations in 2023. 

In Georgia, 25% of police officers are women. Further efforts are needed towards a higher gender balance 
for law enforcement agencies. 

There  is  constructive  cooperation  between  the  Ministry  of  Internal  Affairs  (MIA)  and  the  Prosecutor’s 
Office. Georgia needs to adopt legislation on the separation of powers between criminal prosecution and 
investigation bodies. The possibilities for law enforcement agencies to conduct independent investigations 
without prior authorisation of the Prosecutor's Office for the initial investigative steps should be increased. 
Greater  collaboration  between  prosecutors  and  investigators  at  operational  level  is  also  required.  The 
Interagency Coordinating Council for Combating Organised Crime needs to play a more active role in the 
fight against multi-faceted organised crime.  

On international police cooperation, Georgia signed five international agreements or memoranda in 2023. 
Between June 2023 and March 2024, the MIA exchanged 1 124 pieces of operative information on more 
than 13 161 people with Europol members and partner countries through the Secure Information Exchange 
Network  Application  (SIENA).  Georgia increased its  participation  in  Europol analytical  projects.  Since 
2024, Georgia has been participating in an international operation on cultural heritage crime alongside five 
EU Member States, Switzerland and Europol. As a member of Interpol, Georgia was actively involved in 
seven working groups and the MIA cooperated with Interpol. 

44 

 
 
Graph 14: Georgia - Serious* and organised crime cases

1200

1000

800

600

400

200

0

902

687

664

259

161

179

1028

878

893

974

833

852

226

153

172

211

94

101

n/a

n/a

n/a

n/a

n/a

n/a

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

2021
2023
2022
Number of individuals / legal entities under investigation
Individuals / legal entities indicted
Final court decision
Final convictions

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

n/a: not available

*Data on serious crime cases stem from the aggregation of cases of money laundering, cybercrime, production and trafficking of 
drugs, firearms related offenses, terrorism, trafficking in human beings and smuggling of persons. Corruption cases are showcased 
in Chapter 23. 

Currently,  the  MIA  deploys 
police attachés to 18 partner 
states, covering 37 countries 
(including  12  EU  Member 
27 
States, 
EU/Schengen 
Associated 
States). 

covering 

increased 

Georgia 
its 
participation in the European 
Multidisciplinary  Platform 
against  Criminal  Threats 
(EMPACT).  In  2023,  the 
MIA  participated 
in  6 
operational  action  plans  and 
actions. 
77 
operational 
the 
Cooperation  within 
also 
scheme 
EMPACT 
resulted 
the 
in 
implementation  of  the  ‘low-
value grant’ project focusing 
on the fight against Georgian 
organised crime groups in the 

EU.    

On  domestic  operational  capacity,  the  modernisation  of  police  forces  continued  with  the  further 
development of intelligence-led policing (ILP) in accordance with Georgia’s ILP development strategy 
2021-2025 and action plan for 2023-2025. Effective implementation of ILP practices is still hampered by 
a lack of technical, as well as by cultural and institutional barriers. 

On cybercrime, a total of 999 cybercrime cases were registered in 2023, of which 505 cases (50.55%) were 
resolved. Georgia needs to continue strengthening the professional development through training of the 
employees of the agencies involved in fighting cybercrime, including cybercrime on the ‘dark net’. In June 
2024, Georgia signed the Second Additional Protocol to the Council of Europe Convention on Cybercrime.  

In  2023,  there  was  a  small  increase  in  the  number  of  registered  investigations  into  money  laundering 
crimes  (113  were  registered,  compared  with  96  in  2022),  while  the  number  of  solved  cases  remained 
virtually unchanged (18 compared to 19 in 2022). The quantity of seized and finally confiscated assets still 
remains low, with a minimal increase, especially in money laundering.  

The  government  adopted  a  report  assessing money laundering  and terrorism  financing  risks  in  October 
2023. The second follow-up MONEYVAL report of December 2023 concluded that Georgia has improved 
its compliance with the Financial Action Task Force’s recommendation on politically exposed persons, and 
re-rated Georgia on this recommendation from ‘partially compliant’ to ‘compliant’. 

On trafficking in human beings, 17 investigations were started in 2023. On arms control, 1 003 crimes 
were registered in 2023, of which 849 (84.65%) were solved. 

Cooperation in the field of drugs 

Cooperation in the field of drugs needs to be improved. 

Institutional set-up and legal alignment  

The legal framework is largely in line with the EU acquis. The rules on minimum sentences and penalties 
for  drug-related  criminal  offences  need  to  be  more  closely  aligned.  Georgia  is  party  to  the  relevant 

45 

 
 
 
international narcotic drug control conventions and a National Drugs Observatory has been in place since 
2020. Georgia’s national drug strategy for 2023-2030, along with its accompanying action plan for 2023-
2024 and the 2022-2026 national action plan for the drug information system, are largely in line with the 
2021-2025 EU strategy and action plan.   

Implementation and enforcement capacity  

Georgia  is  a  transit  country  along 
the Caucasus drugs route, which is 
used,  among  other  things,  for 
smuggling  heroin  from  Iran  to 
Türkiye and onwards into the EU. 
The early warning system on new 
psychoactive  substances  has  not 
yet  become  operational  pending 
the final adoption of the concept of 
the  National  Early  Warning 
System.  The  number  of  detected 
drug 
gradually 
increasing, along with the volumes 
of  confiscated  drugs  destroyed. 
Both  the  law  enforcement  system 
and 
Drugs 
Observatory need further capacity 
building.   

National 

crimes 

the 

is 

90
80
70
60
50
40
30
20
10
0

Graph 15: Georgia - Cases related to production and 
trafficking of drugs

81

51

21

75

75

47

26

47

25

n/a

n/a

n/a

Number of
individuals / legal
entities under
Investigation

Individuals / legal
entities indicted

Final court
decision

Final convictions

2021

2022

2023

n/a: not available

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

Fight against terrorism  

The fight against terrorism is being carried out in a satisfactory way. 

Institutional set-up and legal alignment  

Anti-terrorism legislation is largely aligned with the EU acquis and relevant international law, including 
UN Security Council Resolutions. Georgia has a legislative framework on protecting critical information 
infrastructure,  though  the  overall  critical  infrastructure  protection  framework  is  lacking.  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 permanent inter-agency commission is in place, composed 
of high-level representatives from all the agencies responsible for preventing and combating terrorism, and 
chaired  by  the  State  Security  Service  of  Georgia  (SSSG).  The  SSSG  is  responsible  for  preventing  and 
investigating terrorism-related incidents, including cases of terrorism financing and cyber-terrorism. The 
national counterterrorism strategy for 2022-2026 and the corresponding action plan are in place. The 2021-
2030 national strategy on reducing chemical, biological, radiological and nuclear threats also covers arms 
control in each of these domains.  

Georgia is part of Europol’s Counter Terrorism Joint Liaison Team. The arrangement on the exchange and 
protection of classified information between Georgia and Europol was signed on 15 February 2024. 

Implementation and enforcement capacity  

No terrorist incidents took place in Georgia during the reporting period. Since early 2024, the SSSG has 
been investigating several incidents of anonymous reporting and internet threats of alleged terrorist attacks 
in  Batumi  and  Tbilisi.  The  government  has  reported  several  counterterrorism  measures,  arrests  and 
convictions.  Georgia  cooperated  on  counterterrorism  activities  with  Europol  and  INTERPOL  and 

46 

 
 
participated in preventive counterterrorism activities with international organisations including NATO and 
the UN.  

Judicial cooperation in civil and criminal matters 

Judicial cooperation in civil 
and  criminal  matters 
is 
satisfactory. 

Graph 16: Georgia - Requests for Mutual Assistance in Civil and 
Criminal Matters

of 

authority 

The  Office 
the 
Prosecutor  General, 
the 
central 
for 
international 
judicial 
cooperation 
in  criminal 
received  1 264 
matters, 
requests  for  mutual  legal 
assistance in 2023 (1 617 in 
2022).  

3610

2892

2563

2126

1903

1973

2126

1798

1371

1401

1449

1264

718

532

437

532

181

185

4000

3500

3000

2500

2000

1500

1000

500

0

2022

2021

Cooperation  with  Eurojust 
continued. In 2023, Georgia 
was  involved  in  45  new 
to 
cases,  mostly  related 
money 
and 
participated in four coordination meetings at Eurojust and three joint investigation teams (JITs) (two in 
2022). Cooperation with the European Public Prosecution Office (the EPPO) has been established, although 
with limited effects to date. In 2023, the Prosecution Service carried out one EPPO request. 

Source: Ministry of Justice

Incoming requests

Outgoing requests

laundering 

Criminal

Total

Civil

2023

2023

2021

2022

Additionally,  on  14  May  2024  Georgia  has  ratified  the  Convention  of  23  November  2007  on  the 
International Recovery of Child Support and Other Forms of Family Maintenance. 

Legal and irregular migration  

The management of legal and irregular migration needs to be improved. 

Institutional set-up and legal alignment  

The legal framework on migration is partially aligned with the EU acquis and needs updating in line with 
the  latest  EU  developments.  The  Migration  Strategy  2021-2030  and  Integrated  Border  Management 
Strategy 2023-2027 are being implemented. The annual action plan for 2024 was adopted in December 
2023, complementing the 2021-2030 migration strategy. Further efforts are needed to achieve the set targets 
and to improve data collection, analyses and evidence-based policymaking. Amendments to the Law on 
labour  migration,  concerning  the  management  of  labour  migration  and  the  creation  of  a  coordination 
mechanism  between  state  agencies  entered  into  force  in  September  2023.  An  electronic  system  was 
introduced to exchange information on the registration of labour migrants. 

The institutional framework for migration and border management is well established and inter-institutional 
coordination is organised by the State Commission on Migration Issues. Inter-agency cooperation should 
be strengthened. Moreover, there is need for further capacity strengthening and support to fulfil the visa 
liberalisation benchmarks, including addressing the root causes of unfounded asylum requests. Gaps remain 
in the management of migration, in particular irregular migration. 

The  budget  allocated  to  the  state  reintegration  programme  remains  inadequate  and  fails  to  produce  a 
meaningful impact in terms of the sustainable reintegration of Georgian nationals upon their return.   

Georgia has readmission agreements with the EU, and bilaterally with Denmark, as well as with the UK 
(signed in December 2023), Iceland, Norway, Switzerland, Montenegro, the Republic of Moldova, Belarus 

47 

 
 
and  Ukraine.  It  also  has  implementing  protocols  with  13  EU  Member  States.  In  December  2023,  an 
agreement on migration and mobility was signed with Germany. 

In July 2023, Belgium removed Georgia from its list of safe 
countries of origin. In December 2023, Germany classified 
Georgia as a safe country of origin. 

Implementation and enforcement capacity  

The implementation of the readmission agreement with the 
EU  is  very  good.  In  2023,  10  345  Georgians  returned  to  a 
third country following an order to leave. In the first quarter 
of 2024, 1 930 persons returned to Georgia. Frontex operated 
its first return flight to Georgia in September 2023.  

From  June  2023  to  April  2024,  246  return  decisions  were 
issued  by  the  MIA,  with  citizens  of  Azerbaijan,  Iran  and 
Türkiye constituting the majority, 152 among those left the 
country. 

700

600

500

400

300

200

100

0

Graph 17: Georgia - Number of 
irregular movements 

580

438

438

n/a n/a n/a

n/a n/a n/a

n/a n/a n/a

x
x
x

x
x
x

x
x
x

l

a
t
o
T

x
x
x

x
x
x

x
x
x

l

a
t
o
T

x
x
x

x
x
x

x
x
x

l

a
t
o
T

2021

2022

2023

The  number  of  investigations  into  and  prosecutions  of 
trafficking  in  human  beings  and  of  recognised  statutory 
victims  are  gradually  increasing.  During  the  period  from  June  2023  to  April  2024  there  were  16  cases 
investigated, 8 cases prosecuted, 6 court decisions, 10 people convicted and 8 statutory victims recognised.  

Source: Ministry of internal affairs

n/a: not available

Georgia cooperates with international organisations and with partner countries in the framework of police 
and international cooperation to combat cross-border crime. Georgian law enforcement fails to unravel the 
criminal  networks  that  are  behind  smuggling  operations,  but  rather  focuses  on  the  act  of  illegal  border 
crossing. 

During 2023, the government put additional efforts into granting more powers to local authorities for the 
management  of  internally  displaced  persons  and  returning  migrants.  There  are  still  insufficient  legal 
grounds for municipalities to allocate resources to migration management. In 2023, 88% of returnees from 
Georgia did not receive any reintegration support (80% in 2022).   

Health-driven migration is still on the rise. A temporary accommodation centre, operated by the Migration 
Department  of  the MIA,  can  accommodate up to 60 people.  In  2023,  88 foreigners  were  placed in  this 
centre.  In  2023,  an  additional  shelter  for  victims  of  trafficking  in  human  beings  was  opened  in  Tbilisi 
(bringing the total to three) and one crisis centre was opened in Telavi, in the Kakheti region (a total of six), 
increasing  the  capacities  of  state  support.  In  August  2023,  the  rules  on  the  accommodation  of  asylum 
seekers were amended to improve reception services, notably for asylum seekers with special needs.  

The Agency of Internally Displaced Persons, Eco-migrants and Livelihood Provision received additional 
funding to deal with the challenges of returning and reintegrating Georgian migrants.  

Asylum 

The management of asylum needs to be improved. 

Institutional set-up and legal alignment  

48 

 
 
Legislation on asylum is broadly in 
line  with 
the  EU  acquis.  The 
institutional framework and asylum 
system  is  in  place,  while  further 
legal and procedural improvements 
are  needed  and  administrative 
capacity  should  be  strengthened. 
Georgian  legislation  provides  for 
the  non-refoulement  principle,  and 
for  a  maximum  detention  time  for 
irregular  migrants 
in  detention 
centres.  There  is  no  mechanism  in 
place  to  detect  and  prove  cases  of 
refoulement.  

Implementation  and  enforcement 
capacity 

1600
1400
1200
1000
800
600
400
200
0

Graph 18: Georgia - Asylum applications 

1473

1052

473 516

203 194

204 163 156

137 125

n
a
r
I

e
y
i
k
r
ü
T

54

a
i
s
s
u
R

l

a
t
o
T

i

e
n
a
r
k
U

e
y
i
k
r
ü
T

n
a
r
I

l

a
t
o
T

n
a
r
I

l

a
t
o
T

i

e
n
a
r
k
U

e
y
i
k
r
ü
T

2023

Source: Ministry of Interior

2021

2022

In 2023, 990 individuals applied for asylum in Georgia, the majority from Ukraine. 472 applications for 
asylum were rejected, 16 persons were granted refugee status and 166 persons humanitarian status. There 
are currently an estimated 24 000 Ukrainian citizens in Georgia who were granted an extension of legal 
resident status to 3 years in May 2024. Georgia has put in place various measures to allow Ukrainian citizens 
to access public services and has provided some Ukrainians with financial support for accommodation.  

There remains insufficient space in the state reception centre to meet the accommodation needs of asylum 
seekers. No progress was made in creating an official mechanism that would allow the MIA to refer asylum 
seekers and refugees in need of medical assistance to the Ministry of Health. 

The capacities of the State Legal Aid Service have improved during the reporting period. Since January 
2024, two specialist judges in the Tbilisi City Court have been assigned to asylum-related cases.  

Visa policy 

The national visa regime is partially aligned with that of the EU. Georgia made no progress towards further 
alignment with EU visa policy in the reporting period. 

Visa legislation is broadly in line with the EU acquis, but the list of third countries with which Georgia 
maintains  visa-free regimes  is  still  not fully aligned with the list  of third  countries  whose  nationals  are 
subject to a visa for short stays in the EU. Georgia has a visa-free regime with 25 countries that are on the 
EU  list  of  visa-required  countries  including,  since  April  2024,  with  China.  There  was  no  progress  on 
revising Georgia’s visa code to seek greater alignment with the EU Visa Code. 

Further efforts are needed to address unfounded asylum applications in EU Member States. In 2023, the 
number of Georgians applying to EU Member States for asylum declined by 13%, from 28 797 to 25 209, 
but still remains high.  

Schengen and external borders 

Institutional set-up and legal alignment  

The legislative framework for the management of external borders is largely aligned with the EU acquis.  

The 5-year action plan for the integrated border management (IBM) strategy 2023-2027 was approved by 
the government in August 2023. The strategy and its action plan are broadly based on the EU concept of 
IBM.  

Overall planning, coordination, and decision-making in the field of IBM remain somewhat fragmented. 
Additional  efforts  are  necessary  to  adjust  strategic  decision-making  mechanisms  and  establish  the 

49 

 
 
systematic  exchange  of  information  within  and  between  the  agencies  and  departments  responsible  for 
border  security  and  management.  Significant  resources  are  needed  to  support  the  Border  Police  in 
improving border infrastructure and border surveillance, as current capacities are very limited and do not 
cover vast sections of borders. In parallel, steps must be taken to modernise command, control and planning 
practices  to  improve  the  management  of  border  sections  and  increase  the  efficiency  of  border  security 
operations to prevent and counter cross-border crime. Georgia’s border management information system is 
connected to relevant Interpol databases and national watch lists.  

Implementation and enforcement capacity  

Cross-border  cooperation  with  neighbouring  states  remains  satisfactory  and  is  based  on  cooperation 
agreements.  In  November  2023,  the  MIA  adopted  the  border  risk  analysis  methodology,  based  on 
FRONTEX’s  Common  Integrated  Risk  Analysis  Model,  and  started  to  implement  unified  risk  analysis 
approaches within the structural units of the MIA at different levels of analysis. The revenue service is 
strengthening its customs risk analysis capacities by integrating new technologies and setting up efficient 
operational arrangements, in line with European best practices.  

Georgia has joined the UN Countering Terrorist Travel Programme and started using a system provided by 
the UN to analyse Advanced Passenger Information / Passenger Name Records to combat terrorism and 
other forms of serious crime. The creation of a joint inter-agency Passenger Information Unit (PIU), the 
development  of  information  sharing  schemes  between  different  entities,  and  the  development  of  PIU 
analytical capacities are still outstanding. 

Cooperation on the use of repatriation flights for return purposes is working well. Frontex operated the first 
joint EU-Member States repatriation flight to Georgia in September 2023.  

Euro counterfeiting (criminal law aspect) 

The relevant legislation is broadly in line with the EU acquis on the suppression of counterfeit currency. 
The appropriate authorities and procedures are in place to deal with counterfeit money. In 2000, Georgia 
acceded to the 1929 International (Geneva) Convention for the Suppression of Counterfeiting Currency but 
has not yet ratified it.  

All aspects of customs cooperation are covered in Chapter 29 – Customs Union.  

2.3. ECONOMIC CRITERIA 

50 

 
 
 
Sources: National sources; 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 

Economic governance  

The authorities remain committed to pursuing macroeconomic stability but made limited progress 
on key economic reforms and on ensuring the independence of the central bank. As part of the public 
finance management (PFM) reform, the authorities introduced a new methodology for public investment 
management in line with international standards as well as indexation rules for public sector salaries and 
started analysing the economic impact of existing tax expenditures. The capacities of the state employment 
agency have also been strengthened. Little progress was made, however, in addressing important structural 
issues such as strengthening the independence of the central bank, which has been without a permanent 
governor since March 2023, and reforming state-owned enterprises to improve their efficiency and to limit 
contingent  fiscal  risks  for  the  state.  As  a  result,  the 3-year  stand-by  arrangement  with the  International 
Monetary Fund (IMF) has in practice been suspended since mid-2023. In April 2024, Parliament approved 
controversial changes to the tax code that offer a wide range of tax benefits to companies and individuals 
who decide to transfer their assets from tax havens to Georgia. This possibility will be available for an 
exceptionally long period of time (until 2028 and for some until 2030). 

Georgia participated for the first time in the Economic and Financial Dialogue with the EU in May 
2024,  having  submitted  its  first  Economic  Reform  Programme  to  the  Commission  in  January  2024. 
Georgia’s authorities committed to maintaining prudent fiscal and monetary policies while advancing on 
PFM, institution building, and reforms in key economic sectors such as energy, transport, digital, agriculture 
and water management, healthcare, education and training, and capital markets. 

51 

 
 
 
 
Macroeconomic stability 

In 2023, Georgia’s GDP growth remained 
high at 7.5%, although it slowed from the 
two-digit  expansion  seen  in  2021  and 
2022.  This  growth  was  supported  by  both 
the post COVID-19 recovery and the impact 
of  Russia’s  war  of  aggression  against 
Ukraine  (where  a  sizeable  inflow  of  funds 
and  Russian  migrants  boosted  growth,  in 
contrast  to  most  other  countries  in  the  EU 
neighbourhood).  Thus, 
country 
continued  its  economic  convergence  with 
the  EU  as  the  GDP  per  capita  in  terms  of 
purchasing power parity rose to 41% of the 
EU average, up from 33% in 2020. Investment and consumption (both private and government) became the 
main growth drivers in 2023. They were stimulated by improved business confidence, rising wages and 
moderating inflation, as well as by the spending and creation of new businesses by migrants from Russia. 
The contribution of net exports turned negative in 2023 as, despite growing revenues from tourism, lower 
external demand (amid weak global growth) led to a decrease in domestic exports, while imports increased. 
Economic  activity  remained  strong  in  early  2024.  According  to  preliminary  figures,  real  GDP  growth 
reached  9.7%  year-on-year  in  the  first  7  months  of  2024,  supported  by  IT  and  real  estate  services, 
construction, transport, as well as education and other government services. 

the 

The current account deficit continued inching down to 4.3% of GDP in 2023, its lowest level since the 
central bank started releasing balance-of-payments statistics. However, the external position remains 
vulnerable due to the structurally elevated merchandise trade deficit (around 20% of GDP), a reflection of 
the narrow and low value-added export base. In 2023, domestic exports (i.e. excluding re-exports) of goods 
fell by 24.4% year-on-year due to the stronger local currency as well as reduced external demand and lower 
global  prices  for  commodities  such  as  metals  and  fertilisers,  which  constitute  a  substantial  share  of 
Georgia’s exports. In contrast, exports of services, especially tourism and IT, grew dynamically, leading to 
a surplus in the services balance of 11.4% of GDP. While remaining sizeable, the surplus on the secondary 
income account, which largely reflects remittances inflows, decreased considerably in 2023 to 10.9% of 
GDP due to the reduction in money transfers from Russia.  

While  the  inflow  of  foreign  direct  investment  (FDI)  inflows  declined  considerably  in  2023,  they 
remain  high  in  regional  comparison  and 
still fully cover the current account deficit. 
On the positive side, equity FDI rose sharply 
in  2023.  Despite  the  still  large  financial 
inflows to  Georgia,  foreign  reserves  started 
declining as of August 2023 and dropped to 
around  95%  of  the  IMF’s  Assessment 
Reserve Adequacy metric at the end of 2023. 
This  weakening  reflected,  among  other 
factors, interventions by the central bank to 
stabilise the currency in because of pressures 
regulatory 
possibly 
of 
uncertainty 

the 
application 

relating 
over 

to 
the 

52 

-20-15-10-50510152020192020202120222023Graph 1:Georgia -Real GDP growthand contributionsPriv. Cons.Gov. Cons.Gross Capital FormationNet exportsreal GDP growth% y-o-ySource: Nationalsources-2002020192020202120222023Graph 2: Georgia -Current account selected components and FDIWork remittancesGoods and services trade balanceCurrent account balanceNet FDI% of GDPSource: NationalSources, IMF 
 
international  sanctions  and  large-scale  protests  against  the introduction  of a  controversial legislation on 
civil society and media organisations (see below). 

Consumer price inflation moderated sharply in 2023 and remained low in early 2024, while exchange 
rate volatility reemerged as a risk factor. Inflation slowed to 0.4% year-on-year in December 2023 from 
9.8% a year earlier and rebounded only mildly to 1.0% in August 2024, well below the 3% inflation target. 
The sharp slowdown in inflation can be attributed to the tight monetary policy of the National Bank of 
Georgia  (NBG),  easing  global commodity  prices (especially  for energy and food)  and  the  pass-through 
from the 2022 appreciation of the lari. The NBG started to gradually loosen its tight monetary policy stance 
in mid-2023, lowering the policy rate six times by cumulative 300 basis points in total, to 8% at the end of 
August 2024. Overall, the central bank was successful in managing huge financial inflows and preventing 
a credit boom. However, the excess demand resulted in high wage growth that emerged as a significant risk 
factor for the country’s external competitiveness and for a future re-emergence of inflation. The domestic 
political  turmoil  in  spring  2024  led  to  a  temporary  depreciation  of  the  local  currency  that  prompted 
considerable foreign exchange interventions by the central bank.  

At  2.2%  of  GDP6,  the  2023  general 
government  deficit  came  in  well  below 
the 3% planned in the budget law. This 
reflected  a  strong  tax  revenue  increase 
thanks to higher-than-projected economic 
growth, and one-off factors linked to hikes 
in  fees  charged  by  general  government 
grew 
entities. 
significantly as a result of a rise in current 
spending  and  strong  growth  in  capital 
outlays  and  is  set  to  increase  further  in 
2024, reflecting higher interest payments, 
and  planned  increases  in  wages  and  social  benefits.  In  a  medium-term  perspective,  Georgia  faces  the 
challenge of ensuring sufficient financing for priority outlays to underpin productivity growth and reduce 
the significant regional disparities. Due to constitutional constraints on increasing the main taxes, the main 
options  are  to  broaden  the  tax  base,  including  by  streamlining  tax  expenditures,  and  strengthening  tax 
compliance. In this context, the decision of the Georgian government to write off tax debts of individuals 
incurred by the end of 2020 could have negative implications on tax discipline. At the end of 2023, general 
government  debt  remained  at  around  40%  of  GDP,  well  below  the  of  60%  of  GDP  ceiling  set  by  the 
country’s fiscal rule. 

Expenditure 

also 

The macroeconomic policy mix has been appropriate in terms of coping with external shocks and 
avoiding a build-up of significant imbalances thus far, while helping to support economic growth and 
disinflation. The fiscal policy stance was broadly neutral in 2023 and is expected to remain so in 2024 
despite the still sizeable capital expenditures and rising interest payments. The authorities appropriately 
continued rebuilding fiscal buffers. In view of the high growth rates, monetary policy has room to remain 
sufficiently tight to anchor inflation expectations. The key risks for macroeconomic stability include, among 
others, geopolitical tensions that could affect the large tourism sector, further reversal in capital that flew 
into Georgia since the beginning of Russia’s war of aggression against Ukraine as well as of foreign direct 

6  General  government  deficit  as  defined  by  the national  fiscal  rule,  including non-market  SOEs,  calculated  by  the Ministry  of 

Finance. 

53 

020406080-12-8-40420192020202120222023Graph 3: Georgia -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public debt (rhs)Source: Nationalsources, IMF% ofGDP 
 
 
investment inflows, and the weak export base amidst slowing economic growth in some of the country’s 
main trading partners. Additional risks stem from the high domestic political polarisation.  

Functioning of product markets  

Georgia’s regulatory environment for business is overall liberalised, while some challenges persist. 
Registering a company requires just a single procedure and is completed within a day at a very low cost. 
Georgia has one of the highest firm birth rates but also one of the lowest company survival rates in Europe. 
This  results  from  the  fact  that  many  entrepreneurs  are  driven  into  self-employment  by  limited  job 
opportunities  and  relatively  high  tax  burden  on  labour,  leading  to  many  small  enterprises  with  poor 
corporate governance and financing prospects, but also from persistent barriers to business operations and 
growth.  Georgia  scores  very  well  on  regulatory  quality  (above  the  EU  average)  and  government 
effectiveness, as measured by the 2023 World Bank Worldwide Governance Indicators. While competitive 
pressures have increased in the recent years and there have been improvements to the competition legal 
framework  to  align  it  to  international  best  practices,  there  are  issues  relating  to  the  capacity  of  the 
competition,  agencies  and  regulators  to  effectively  enforce  it.  There  is  evidence  of  weak  productivity 
growth in individual companies and the continued reliance on low- sophisticated markets, while companies 
face high cost to enter the EU market (including lack of standardisation and the associated infrastructure). 
The broader challenges for the business environment include deep political polarisation, vested interests, 
political control over many public institutions and stalled judicial reform. Georgia was ranked 49th out of 
180 countries in Transparency International’s 2023 corruption perception index (deteriorating from 41st 
position in 2022). The authorities continued and expanded business support measures, aimed in particular 
at small and medium-sized enterprises (SMEs), including through the creation from 2023 of regional growth 
hubs  to  provide  local  SMEs  with  advisory  and  training  services,  as  well  as  by  expanding  the  Business 
Universal Programme supporting activities such as better access to finance (interest rates subsidies) and 
export promotion.   

The share of the informal economy remains considerable. Although estimates vary greatly7, around one 
third of workers are employed informally, many of them in agriculture, or in seasonal jobs. Informality in 
Georgia is closely linked to the country’s economic structure dominated by agriculture, construction and 
tourism, a large share of self-employed, a lack of unemployment benefits and a high share of cash payments. 
In recent years, the authorities have taken relevant steps to tackle informality through the re-established 
labour inspectorate, revenue measures, and strengthened links between social and employment services. 
However, the is no government-wide approach addressing this issue, encompassing tax, labour, social and 
financial policies. 

The state footprint in the economy remains modest overall but the state remains an important player 
among  larger  corporations,  while  the  progress  on  the  reform  of  the  governance  of  state-owned 
enterprises (SOEs) has stalled. SOEs account for 1.3% of the total number of active Georgian enterprises, 
3.2% of their value added and 8.1% of employment in 2023. They represent 23% of large and medium-
sized firms, and they are concentrated in energy, water, transport and real estate. The authorities have so 
far only started implementing the SOE reform strategy on a pilot basis for three SOEs. The authorities also 
took  steps  to  improve  financial  reporting  of  the  major  SOEs  to  better  monitor  contingent  fiscal  risks. 
However, the approval of a framework law on SOE governance has been delayed amid lack of consensus 
over  the  SOE  ownership  model.  The  scope  of  privatisation  was  very  limited,  with  the  revenues  from 

7 According to World Economics (2023), which uses an average of the latest estimates from economists around the world, Georgia’s 
informal economy represents about 46% of GDP, the same as in 2022. Any estimates must be made with caution given the 
variety of methodological approaches. 

54 

 
 
 
privatisation and sales of state property amounting to GEL 280 million (0.35% of GDP) in 2023. The total 
amount of state aid issued by public bodies in Georgia has been very low, but reporting on this diverges 
from the EU acquis requirements. The extent of price regulation remains very limited in Georgia. 

Functioning of the financial market 

The Georgian banking sector remains sound. The banking system’s capital adequacy ratio stood at a 
comfortable 22.1% at the end of 2023 and most lenders remained very profitable (reaching an aggregate 
26.5% return on equity). The asset quality of the sector as a whole remains strong, with the ratio of non-
performing loans to total loans broadly unchanged at a low 1.5%. The high dollarisation of both assets and 
liabilities remains  a  structural  weakness of the  banking  system.  In  2023,  the  share  of  foreign-currency-
denominated deposits liabilities has decreased, while the share of loans in foreign currencies has remained 
broadly unchanged. The size of financial intermediation, measured by the ratio of loans to the private sector 
to GDP, stood at 64% at the end of 2023, against 90% of GDP in the EU. Credit growth accelerated from 
12.1% at the end of 2022 to 17.2% at the end of 2023 (excluding the effect of exchange rate fluctuations) 
for both corporate and retail loans. Access to finance has continued to improve as a new law on micro banks 
entered into  force in  July 2023  to  stimulate lending to  very  small  companies,  but  still remains  a major 
obstacle for many SMEs. The insurance sector and the capital market are still underdeveloped, although 
the authorities  have  started  to implement the  2023-2028  capital  market  development  strategy,  with two 
main goals: increasing the quantity and types of securities on the market and deepening the investor base.  

Functioning of the labour market  

led 

Strong  economic  activity  and  a  wider  use  of 
to 
labour  market  policies 
active 
improvements in the labour market, although 
weaknesses  remain.  The  unemployment  rate 
among the population aged 15-648 decreased from 
18.6%  in  2022  to  17.6%  in  2023,  while  the 
employment  rate  rose  from  49.9%  in  2022  to 
52.4%  in  2023.  The  authorities  continue  to 
strengthen the capacities of the State Employment 
Support Agency, which provided in 2023 a variety 
of  employment  and  training  services  to  more 
unemployed people than in 2022. However, some 
labour  market  weaknesses  persist, 
structural 
including the persistent mismatch between labour 
skills and business needs, a large share of informal employment, a significant gender disparities partially 
caused by the low availability of childcare and elderly care services, and regional differences. Following a 
moderate rise in previous years, the average level of wages increased strongly in 2023 by 17% in real terms.   

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

Education and innovation  

With ongoing efforts, the country makes progress in improving education framework, while learning 

8 In the enlargement reports, labour market indicators are calculated for the population aged 15-64, while Geostat uses indicators 
based on International Labour Organisation definitions covering the population aged 15 years or older. Therefore, according 
to Geostat definitions, the unemployment rate in Georgia was 16.4% in 2023, and the employment rate 44.5%. 

55 

10.012.014.016.018.020.022.024.02019202020212022202330.035.040.045.050.055.060.065.070.0Graph 4: Georgia-Labour market trendsActivity rate (rhs)Employment rate (rhs)Unemployment rate (lhs)Source: Nationalsources 
 
 
outcomes remain modest.  Public spending on education represented 4% of GDP in 2023, below the EU 
average of 5%. In 2023, the efforts of the authorities for improvements focused especially on the vocational 
qualification  system,  including  the  development  of  VET  methodologies,  the  development  of  teachers’ 
qualifications,  and  the  creation  of  sectoral  skills  organisations  involving  private  companies  in  the  VET 
system. In addition, national education goals have been revised, the authorities continued adjusting school 
curricula and new national standards for early and preschool care and education were adopted in July 2023. 
Despite ongoing reforms, Georgia was ranked only 68th out of 81 countries in the 2022 PISA assessment 
that measured reading outcomes in secondary education, although its score slightly improved. While 42% 
of  the  population  have  completed  tertiary  education,  there  are  also  quality  issues  in  higher  education, 
contributing to a large proportion of tertiary graduates taking up medium- and low-skilled jobs. 42% of 
private firms in Georgia cite an inadequately educated workforce as a key constraint.  

Georgia  is  making  appropriate  efforts  to  improve  its  innovation  environment  but  spending  on 
research  and  development is still  very  low,  at  0.24%  of GDP  (EU  average: 2.2%  of  GDP).  Georgia 
ranked 63rd (out of 132 economies) in the 2023 Global Innovation Index, an improvement from the 74th 
position in 2022. The Georgia Innovation and Technology Agency (GITA) provides training and funding 
support to develop the innovation ecosystem, with a focus on the IT sector. The IT sector has expanded 
very fast over the last years thanks to an inflow of (predominantly Russian) IT professionals to Georgia 
after the outbreak of Russia’s war of aggression against Ukraine, the tax incentives introduced in 2020 and 
GITA programmes.   

Physical capital and quality of infrastructure  

Public investment has appropriately remained  high (close to 9% of GDP in 2023), but significant 
infrastructure  needs remain.  Georgia  introduced  in  February  2023  an  updated  methodology to assess 
public investment projects, but its implementation hinges on the capacity of ministries to prepare high-
quality project appraisals. Public investment in 2023 focused primarily on the construction of the missing 
parts of the East-West Highway (part of European route E60), expected to be fully completed by 2025, as 
well as on addressing bottlenecks in the railway sector. Georgia’s role in international transit has increased 
recently as part of the Middle Corridor connecting China and Central Asia with Europe, bypassing Russia. 
To address port bottlenecks on this route, the authorities have selected a Chinese consortium as a partner to 
develop a new deep-water port in Anaklia. In the energy sector, Georgia has substantial renewable energy 
potential, but still relies heavily on imports of fossil fuels. The government is focused on expanding the 
transmission network and on securing private investment for new wind, solar and hydropower plants. In 
2023-2024 the authorities concluded two big auctions for renewable power generation, but in mid-2024 
they announced that they would be moving away from auctions back to direct contracting. In the area of 
information  and  communications  technology,  the  penetration  of  fixed  broadband  internet  subscribers 
among  households  increased  and  reached  95.7%  ,  above  the  EU  average.  The  authorities  consider  the 
development of broadband connectivity as a priority and continued investment in fibre networks in more 
remote  regions.  However,  issues  such  as  the  relatively  high  prices  of  high-speed  fixed  broadband, 
insufficient digital skills and weak international digital connectivity persist.   

Sectoral and enterprise structure 

Georgia continued its structural economic transformation as services further increased their share 
of  the  economy.  In  2023,  the  biggest  gains  were  recorded  by  the  highly  productive  information  and 
communication technology sector, which continues to benefit from inflows of a significant number of high-
skilled workers from Russia. The sector accounted for nearly 6% of GDP in 2023, thus doubling its share 
in  the  economy  in  only  3  years.  Wholesale  and  retail  trade  and  real  estate,  the  two  leading  economic 
activities in terms of output, witnessed a considerable expansion as well, while the share of manufacturing 

56 

 
 
and agriculture in the economy, sectors that are characterised by low productivity, declined considerably. 
Tourism grew and remains key for Georgia’s economy, as revenues amounted to 13.5% of GDP in 2023. 
The number of people occupied in services grew, especially in trade and hospitality. Agriculture, dominated 
by small-scale farming, remains the biggest employer, but its share of total employment has continued its 
downward trend to 16.5% in 2023. The share of employment in SMEs also declined, to less than 60% in 
2023.  

Economic integration with the EU and price competitiveness 

Economic integration with the EU remains moderate. The share of trade in goods between the EU and 
Georgia rose by 0.7 percentage points in 2023 to 20.9% of the total. This is the first increase since 2016 
that reflects the surge in Georgia’s imports of goods from the EU by 25% in 2023, largely related to imports 
of machinery and transport equipment as well as chemicals. In contrast, exports plummeted to only 11.6% 
of the total, the lowest share since 2002, reflecting the surge in re-exports, mainly to countries in central 
Asia (Kyrgyzstan and Kazakhstan). Excluding re-exports, the EU’s share of exports of goods by Georgia 
has been stable in the last 3 years at around 20%. Georgia continues to have strong trade links with most of 
its neighbours, especially Türkiye and Russia. The EU remained the biggest source of all FDIs (33% of the 
total in 2023), which were primarily directed to the financial sector (39.5% of the total in 2023), while 
manufacturing came second (18.3%). 

Following 2 years of strong appreciation, the real effective exchange rate remained broadly stable in 
2023. It weakened against both the euro and the US dollar, but was offset by a very strong appreciation 
against the Russian ruble, which could have negative implications considering that Russia remains a major 
trading partner for Georgia. 

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 treatment. 

Institutional set-up and legal alignment 

The legislative framework remains partly aligned with the EU acquis. The institutional framework needs 
further strengthening.  

57 

051015202520192020202120222023Graph 5a:Georgia -Exports compositionEUCISOthersSource: Geostat% ofGDP01020304050607020192020202120222023Graph 5b: Georgia -Imports compositionEUCISOthersSource:Geostat% ofGDP 
 
 
 
 
The  new  Law  on  public  procurement  (PPL),  which  aims  to  align  with  the  EU  Directives  on  public 
procurement,  on  the  application  of  review  procedures  to  the  award  of  public  supply  and  public  works 
contracts and on defence and sensitive security procurement has not yet entered into force.  

The EU Directive on procurement by entities operating in the water, energy, transport and postal services 
sectors and the Directive on award of concession contracts have not been aligned with yet.  

The  new  PPL  contains  several  provisions  safeguarding  the  independence  of  the  Procurement  Dispute 
Resolution Council. The Council is independent, and its members are selected through public competitive 
procedure and later appointed by the Prime Minister. 

Implementation and enforcement capacity 

On the public procurement market, in 2023, 32 076 tenders were announced in the e-procurement system. 
The total volume of public procurements carried out in 2023 amounted to GEL 10 493 526 646, which is 
13.1% of GDP, an increase by 8% in comparison to 2022. 

The  State  Procurement  Agency  (SPA)  published  new  guidelines  on  green  and  energy  efficient  public 
procurement.  

The contracting authorities need to continue to build capacity to manage public procurement processes. The 
SPA continues to provide trainings to line ministries (364 people trained in 2023) and the SPA has advanced 
in setting up a contracting process monitoring system (through an automated system integrated in the e-
procurement system) in contracting authorities. 

Efficient remedy system 

The legislation on the right to appeal is partially in line with the EU  acquis. The e-procurement system 
makes it possible to submit appeals electronically to the Dispute Resolution Council in order to dispute any 
decision of the contracting authority. In 2023, the Council dealt with 1 006 complaints, compared to 862 
complaints in 2022. 63% of complaints were decided in favour of businesses. In 18 cases, decisions of the 
Council were appealed in first instance, of which one case was considered and decided in favour of the 
Council.  

Chapter 18 - Statistics  

European  statistics  are  developed,  produced  and  disseminated  by  EU  Member  States,  guided  by  the 
principles  and  quality  criteria  elaborated  in  Regulation  on  European  statistic,  such  as  professional 
independence, impartiality, reliability, transparency and confidentiality. Common rules are provided for 
the methodology, production and dissemination of statistical information, which are further specified in 
sectoral legislation that constitute the EU acquis on statistics.  

The  legal  framework  for  statistical  infrastructure  is  partially  aligned  with  European  standards  and 
principles  laid  down  in  the  European  Statistics  Code  of  Practice.  To  a  large  extent,  national  legal 
instruments  are  in  place  for  producing  and  disseminating  required  statistical  data  including  sex-
disaggregated  and  to  further  approximate  the  produced  statistics  with  EU  standards.  The  institutional 
framework and coordination within the national statistical system needs further strengthening. The new 
Law on official statistics entered into force on 30 August 2023. The law clarifies the role of the Geostat 
(National  Statistical  Institute  of  Georgia)  Board,  executive  director  appointments  and  exclusive  use  of 
statistical  data  for  statistical  purposes.  A  strategy  for  the  development  of  official  statistics  2024-2027 
integrating institutional development with a focus on providing high-quality, user-centred official statistics 
in order to maximise data value and enable informed decision-making was adopted in June 2024.  

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As regards registers and classifications, the main classifications are in place,  with different degrees of 
compliance with the EU acquis. NUTS-equivalent statistical regions have not been agreed, Georgia should 
start  the  process  leading  to  a  bilateral  agreement.  Georgia  has  not  transmitted  data  to  Eurostat  for  the 
national  statistical  business  register,  a  self  assessment  reveals  a  need  to  complete  enterprise  group 
implementation and coverage of local units and local kind of activity units. 

On macroeconomic statistics, Georgia needs to start submitting national accounts data,  excessive deficit 
procedure  tables  and  data  on  government  finance  statistics  to  Eurostat.  In  addition,  the  institutional 
arrangements  need  to  be  carefully  reviewed  to  assure  scientific  independence  to  delineate  the  general 
government sector and the recording of its operations. Georgia should gradually increase the production of 
data compliant with the ESA 2010. The country needs to start submitting regional GDP tables, consistent 
at statistical NUTS 2 level. Annual financial sector accounts are not transmitted. 

The  harmonised  index  of  consumer  prices  has  not  been  validated  by  Eurostat.  Data  on  housing  price 
statistics are not transmitted to Eurostat. Georgia participates in the International Comparison Programme 
following  the  Eurostat  work  programme  but  methodological  improvements are needed for  a  number  of 
surveys. 

Balance-of-payments statistics are compiled and disseminated by NBG according to methodology of the 
BPM6, connected with the balance of payments or its components but Georgia has not started sending data 
to Eurostat.  

Business statistics are not transmitted to Eurostat.  

On social statistics, the next population and housing census is scheduled for November-December 2024. 
The  population  register  is  yet  to  be  created.  Demographic  and  international  migration  statistical  data 
transmitted to Eurostat increased over the period, but further improvements are needed, including for data 
on international migration, acquisition of citizenship and deaths by month.  

The next agriculture census will be carried out in 2024, together with the general population census. Geostat 
integrates data from the agriculture census and sample surveys to produce agricultural statistics.  

Environment  statistics  data  are  not  transmitted  to  Eurostat.  There  are  limited  waste  statistics  in  the 
country. On  transport statistics, Georgia has a medium compliance level for inland transport statistics 
transmitted to Eurostat, with further data needed on infrastructure and transport equipment.Rail transport 
statistics, air transport statistics and road freight transport statistics are not transmitted to Eurostat. 

On energy statistics, Georgia is aligned with the EU statistical acquis, in line with the provisions adopted 
by  the  Energy  Community  in  agreement  with  the  European  Commission.  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. 

Public internal financial control and audit 

As regards the strategic framework for public internal financial control (PIFC), the Law on PIFC is a 
suitable basis for enabling the development of PIFC in line with international standards and to meet EU 
PIFC requirements. The institutional framework needs further strengthening.  

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The  financial  management  and  control  system  remains  at  an  early  stage  of  development.  The  PIFC 
system strategy 2021-2024 is being gradually implemented. With support of EU-funded expertise provided 
by OECD SIGMA, the focus remains on the improvement of methodologies and promotion of awareness 
and accountability in central ministries as well as on implementation of a pilot in three selected ministries 
The focus is on managerial accountability as well as on identifying roles and responsibilities of financial 
management and control in line departments in charge of budgetary programmes. In parallel, regarding 
internal audit, certification of auditors is being prepared: once certified, auditors will perform internal audit 
work  according  to  international  standards.  The  central  harmonisation  unit,  set  up  in  the  Ministry  of 
Finance,  remains  understaffed  and  lacks  a  suitable  mandate  to  support  effectively  PIFC  reform 
implementation.  

As regards internal audit, the new global standard was approved, entering into force on 1 January 2025. 

External audit 

The State Audit Office (SAO) operates in line with international best practices. The implementation rate of 
its recommendations by the executive remains low (45%). The SAO created a designated portal where it 
listed all recommendations issued to the executive.  

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. 

Protection of the EU’s financial interests 

Georgia started the legal approximation with EU acquis requirements and in particular the Directive on the 
fight  against  fraud  against  the  EU’s  financial  interests  by  means  of  criminal  law.  No  anti-fraud 
coordination service (AFCOS) has been officially designated, but the Prosecution Service of Georgia acts 
as focal point for cooperation with the European Anti-Fraud Office (OLAF). Cooperation in investigations 
between  OLAF  and  relevant  national  authorities  takes  place  on  a  case-by-case  basis.  Georgia  should 
develop a track record of cooperation with the Commission on investigations. 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

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

Georgia generally maintains good bilateral relations with its neighbours and other enlargement countries 
in the region. In 2023, 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 international forums, which facilitates the 
further advancement of bilateral relations based on mutual interest. In addition, Georgia has a memorandum 
of understanding with Serbia on cooperation in the field of European integration. It is currently considering 
signing similar memoranda with Albania, Bosnia and Herzegovina, Montenegro, and North Macedonia. In 
October 2023, Deputy Ministers from Georgia and the Western Balkans held joint consultations related to 
European integration issues. On 5 February 2024, the first Georgia-Western Balkans Inter-Parliamentary 

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Conference  on  European  Integration  was held in  Tbilisi.  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 region.  

Georgia and Türkiye enjoy a strategic partnership with high-level contacts, including in the framework of 
a High-Level Strategic Cooperation Council. Türkiye is Georgia’s largest trading partner after the EU, and 
the two cooperate on major energy projects such as the Baku-Tbilisi-Ceyhan oil pipeline, the Baku-Tbilisi-
Erzurum gas pipeline and the Southern Gas Corridor, and in the Middle Corridor international project. In 
2024, Türkiye and Georgia signed a cultural cooperation programme for 2024-2028.  

Georgia  and  Ukraine  have  implemented  a  strategic  partnership  since  2017.  While  Georgia  supports 
Ukraine’s territorial integrity and sovereignty, Ukraine has expressed concerns about the non-alignment of 
Georgia with EU sanctions against Russia and the absence of military-technical cooperation. The ill health 
of the imprisoned former Georgian President Mikheil Saakashvili, a Ukrainian citizen, continues to cause 
diplomatic tensions.   

Georgia  and  Moldova,  both  ‘Association  Trio’  members,  traditionally  enjoy  good  bilateral  relations. 
Relations between the two are based on mutual support for each other’s sovereignty and territorial integrity 
with both promoting similar approaches in regional and international platforms.  

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).  

Chapter 1 - Free movement of goods   

The  free  movement  of  goods  ensures  that  many  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. 

General principles 

With the partial alignment on the EU acquis on standards, conformity assessment, accreditation, metrology 
and market surveillance, some of the elements of the general principles of the legislative and institutional 
framework for the free movement of goods are in place. Georgia needs to adopt and implement a roadmap 
with a clear timeline to complete alignment with the EU acquis. Amendments to the energy labelling Law 
at the  end  of  June  2023  empowered the  Market  Surveillance  Agency  to monitor the implementation of 
labelling regulations. 

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 aspects that are not 

 This designation is without prejudice to positions on status and is line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo 

declaration of independence. 

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compliant with the obligations of  Articles 34-36 Treaty on the Functioning of the European Union. 
These non-compliant aspects 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  national  legal  bases  for  standardisation,  conformity  assessment,  accreditation,  metrology  and 
market surveillance are partly aligned with the EU acquis and the administrative structures are in place. As 
of June 2024, the national standardisation body, GEOSTM, adopted 13 268 standards from the European 
Committee  for  Standardisation  (CEN)  and  7  445  standards  from  the  European  Committee  for 
Electrotechnical Standardisation (CENELEC). In June 2024, GEOSTM became member of the European 
Association of National Measurement Institutes (EURAMET). In December 2023, the accreditation centre 
of Georgia (GAC) obtained full member status of the European Accreditation. The system used for market 
surveillance before the placing on the market is not aligned with the EU acquis.   

Harmonised area: sectoral legislation 

There was no progress on alignment with EU ‘new and global approach’ product acquis, on which the 
overall level of alignment remains low.  

On EU ‘old approach product legislation’ product acquis, there was no progress on alignment, including 
on REACH (registration, evaluation, authorisation and restriction of chemicals), or chemicals classification 
(CLP). 

Georgia has not made any progress on aligning to the EU acquis on procedural measures. 

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’s legal framework is not aligned with the EU acquis. The institutional framework is partially in 
place.  

On access to the labour market, EU workers do not need work permits. The Georgian legal framework 
does not restrict the employment of foreigners and does not require a work permit for citizens of countries 
that benefit from visa-free travel (including all EU Member States), allowing them to stay in the country 
for up to one year without residence permit and to enjoy the same labour rights as Georgian citizens. There 
are no specific legislative provisions on the family members of EU workers. In 2023, obligatory registration 
of foreign migrant workers was introduced for their employers, along with the  obligation to sign formal 
employment  contracts.  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. 

No  preparatory  work  was  carried  out  by  Georgia  to  access  the  European  Network  of  Employment 
Services (EURES).  

No new agreements for bilateral coordination of social security systems were concluded in the reporting 
period. Georgia has three bilateral agreements with EU Members States in place (with Germany, Bulgaria 
and France).  

Georgia  has  not  implemented  a  national  health  insurance  card.  The  implementation  of  the  European 
Health Insurance Card might therefore be challenging. 

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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. 

On 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 further 
aligning with the Services Directive.  

As regards postal services, Georgia is not aligned with the EU postal acquis. Georgia should update the 
AA/DCFTA annex on rules applicable to postal and courier services and continue progress on aligning with 
the EU postal acquis. 

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

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. In July 2023, the Council of 
the National Bank adopted a regulation to lay down the rules of activity of the dispute review commission 
at the National Bank of Georgia.  

The  alignment  of  the  legislative  and  institutional  framework  for  anti-money  laundering  remains 
incomplete.  There is still no beneficial ownership register.  Fully effective coordination and cooperation 
between supervisory, law enforcement and prosecutorial authorities requires more efforts. The government 
adopted  the  Report  on  Money  Laundering  and  Terrorism  Financing  Assessment  Risks  in  Georgia  in 
October 2023. Georgia has been implementing the anti-money laundering/countering financing of terrorism 
strategy and action plan. Georgia’s anti-money laundering legislation partly addresses recommendations of 
the Financial Action Task Force. Some recommendations from Moneyval remain unaddressed.  

There  were  no  developments  on  the  Financial  Monitoring  Service  of  Georgia  (the  national  financial 
intelligence unit). 

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. 

The institutional framework is functional, some of the general elements of the legislative framework are 

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partially in line with the acquis. Georgia is partially aligned with the EU acquis in terms of company law. 
The  NAPR  is  the  authority  responsible  for  registering  companies  and  disclosing  company  information. 
However, financial information in the business register  needs  to  be  disclosed  and  there  are  no  rules  on 
disclosing information on foreign branches, as required by the EU acquis. The administrative capacity of 
the  NAPR  requires  further  strengthening.  Georgia  is carrying  out  a gap  assessment  on takeover bids to 
further align with the EU acquis in this area (Directive 2004/25). Georgia also has to align shareholder 
rights,  including  the  encouragement  of  long-term  shareholder  engagement  (Directives  2007/36  and 
2017/828 – Shareholder Rights Directives I and II). Further alignment is needed with Directive 2019/1151 
on  digital  tools  and  processes  and  Directive  2019/2121  on  cross-border  operations  (mergers,  divisions, 
conversions), and on disclosure of information on foreign branches.  

On company reporting, Georgia should continue aligning with the EU acquis, including the transparency 
requirements for listed companies. Further alignment is particularly needed on: 1) the financial reporting 
principles relating to small entities; 2) the criteria to define company size categories; 3) 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 is the competent 
authority for audit oversight, including monitoring the quality control system of an auditor / audit firm. The 
Law  on  Accounting,  Reporting  and  Auditing  was  amended  in  accordance  with  Regulation  (EU)  No. 
537/2014 on specific requirements related to mandatory audits of public interest entities. The amendment 
introduces the obligation to submit a transparency report for Public Interest Entity (PIE) audit firms and 
prohibits non-audit services provided by audit firms to their clients. The consolidated version entered into 
force in May 2024. 

Chapter 7 - Intellectual property law  

The EU has to a large extent harmonised rules for the legal protection and enforcement of intellectual 
property rights (IPR), covering notably patents, trademarks and designs, biotechnological inventions and 
pharmaceuticals,  trade  secrets,  Geographical Indications,  Supplementary  Patent  Certificates, copyright 
and related rights. 

The Law on copyright and related rights regulates the area of copyright and related rights and remains 
partially  aligned  with  the  copyright  acquis.  Two  amendments  were  made  to  the  Law  on  copyright  and 
related rights in July and December 2023, creating in particular new mechanisms to ensure transparency of 
collective  management  organisation  and  principles  of  fair  distribution  of  royalties  and  setting  tariffs. 
Georgia has not aligned with the most recent copyright acquis, most notably Directive 2019/790/EU on 
copyright and related rights in the Digital Single Market.  

On industrial property rights, Georgia remains partially aligned with the EU acquis. With an exception 
of amendment on appointment and qualification of a pattent attorney, Georgia has been implementing the 
June 2023 amendments to the Law on patents, which should ensure compliance with the European Patent 
Convention.  

Georgia became the fifth country with validation status and the 45th country where patent protection will 
be  possible  on  the  basis  of  a  European  patent  application.  The  Agreement  between  the  Government  of 
Georgia  and  the  European  Patent  Organisation  (EPO)  on  Validation  of  European  Patents  (Validation 
Agreement) entered into force on 15 January 2024. It allows to validate European patents on the territory 
of Georgia, based on a single European patent application. European applications and patents validated in 
Georgia will have the same legal effect as Georgian applications and patents.  

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Amendments to the Trademark Law were adopted in February 2024, introducing changes to the grounds of 
appeal that can be used to appeal in the Chamber of Appeals of Sakpatenti, new types of trademarks and 
changes to the examination procedure of trademarks. 

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 Economy and the Communication Commission having a limited 
role.  

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. 

Antitrust and mergers 

The legislative framework is partially in line with the EU acquis. Following a comprehensive review of 
primary and implementing legislation, several procedural and material amendments to the competition Law 
entered into force on 1 January 2024. The definition of annual turnover has been revised, and the timeframe 
for withdrawing a complaint has been restricted, now set before the draft decision is sent. Provisions on the 
leniency programme have been amended to align with the ECN+ Directive. Fines have been introduced for 
obstructing on-site inspections (dawn raids). The amendments have also enabled the possibility of seeking 
external  assistance  during  on-site  inspections  (dawn  raids).  Numerous  amendments  to  implementing 
legislation were also made, with four legal acts amended, notably on the rule of merger notifications.  

As  regards  the  institutional  framework,  an  internal  restructuring  was  undertaken  in  the  Georgian 
Competition and Consumer Agency (GCCA). The Agency Chair now has one deputy, instead of two.  

On  implementation,  between  15 June 2023  and  30 August  2024  the  GCCA  assessed  and  approved  11 
concentrations for different sectors of the economy. It completed two investigations into possible abuse of 
dominant position, four into potential cases of excessive  pricing practices, four investigations into anti-
competitive agreements and four into unfair competition.  

State aid 

The legal framework on State aid is not in line with the EU acquis. The GCCA finalised an analysis on 
the gaps and priorities to be addressed in the area of State aid.  

The  institutional  framework  and  enforcement  capacity  of  the  GCCA  needs  to  be  strengthened.  On 
implementation, no decisions were taken in 2023 on State aid issues, only information on de minimis State 
aid was collected. 

Liberalisation  

Georgia’s competition and State aid legislation is 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. 

Chapter 9 - Financial services 

EU rules aim to ensure fair competition between, and the stability of, financial institutions, namely banking, 

65 

 
 
insurance, supplementary pensions, investment services and securities markets. They include rules on the 
authorisation, operation and supervision of these institutions. 

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. The Law on deposit 
insurance requires further alignment with the EU acquis, including on the coverage level (currently at GEL 
15 000, around EUR 5 300). 

On bank resolution, in December 2023, Parliament approved legislative amendments to approximate the 
provisions  related  to  the  resolution  fund  with  the  Bank  Recovery  and  Resolution  Directive  (BRRD) 
requirements,  according  to  which  commercial  banks  are  required  to  make  ex  ante  contributions  to  the 
resolution fund (ex ante fund) in order to reach the target of 3% of covered deposits by 2033. To further 
align with BRRD, the NBG approved a new regulation establishing minimum requirements for own funds 
and eligible liabilities (MREL). Amendments to national rules were made aiming to implement BRRD rules 
on contractual recognition of bail-in for contracts governed by the laws of foreign countries. 

As  regards  insurance  and  occupational  pensions,  the  adoption  and  implementation  of  legislation  on 
domestic  motor  third  party  liability  insurance  is  still  pending.  The  Law  on  voluntary  private  pensions 
entered into force partially on 1 January 2024, and will fully enter into force on 1 January 2025. 

For both insurers and reinsurance undertakings, the current supervisory regime in Georgia remains based 
on  the  Solvency  I  regulatory  framework.  Georgia  should  work  towards  aligning  with  the  Solvency  II 
framework. 

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

A  legislative  framework  for  securities  markets  and investment  services  is in place.  In  January  2024, 
Parliament endorsed legislation on securitisation along with related legislative amendments to other laws 
aiming to enhance the access to finance in the country for both the financial and non-financial sectors. The 
law, which came into effect on 1 April 2024, aims to incorporate key principles of the EU Securitisation 
Regulation.   

As regards investment funds, Georgia has not reported further progress and alignment with EU legislation, 
including recently introduced changes. 

As regards digital finance, efforts are underway to plan the Digital GEL pilot project execution and gradual 
rollout plan. 

Georgia  has  made  some  progress  on  sustainable  finance  through  the  implementation  of  the  NBG’s 
Sustainable  Finance  Roadmap  for  2019-2022.  The  NBG  has  developed  environmental,  social,  and 
governance (ESG) guidelines through a double materiality perspective,aiming to help commercial banks 
meet  these  requirements  and  provide  main  principles  for  managing  risks  and  opportunities.  The  NBG 
started  working  on  climate  scenario  analysis  and  developed  a  Sustainable  Finance  Taxonomy,  which 
defines green, social, and sustainable loans and sets the reporting requirements for taxonomy-aligned loans 
for commercial banks. The NBG also worked on a Green/Social/Sustainable/Sustainability-linked (GSS +) 
bonds framework. 

Chapter 28 - Consumer and health protection  

EU  rules  protect  consumers’  economic  interests  and  also  ensure  product  safety,  prevent  dangerous 
imitations and establish liability for defective products. The EU also guarantees a high level of protection 
of public health and in particular also ensures high common standards for tobacco control, blood, tissues, 

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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. 

Consumer protection 

On  cross-cutting  aspects, the institutional framework  on  consumer  protection  is  in  place  and the legal 
framework is partially in line with the EU acquis. In December 2023, national legislation was adopted to 
align with the EU acquis on timeshare, long-term holiday product, resale and exchange contracts. In regard 
to  enforcement  and  redress,  the  main  consumer  protection  authority,  the  Georgian  Competition  and 
Consumer  Agency  (GCCA),  increased  its  enforcement  capacity  and  in  2023  it  joined  the  International 
Consumer Protection and Enforcement Network with partner status. Between June 2023 and August 2024, 
the GCCA processed 849 applications, and consumer rights violations were confirmed in 39% of these 
cases. Georgia’s legal framework on product safety is partly aligned with the EU acquis. National market 
surveillance legislation and processes are not aligned with the EU acquis (See Chapter 1).  

Public health 

As regards public health, Georgia continues to implement its National Health Strategy for 2022-2030 with 
an aim to achieve universal health coverage. In 2024, the annual limit on medicines for the treatment of 
chronic diseases was removed. The nosological groups were expanded, in particular, medications for the 
treatment  of  glaucoma  were  added.  The  state  of  women’s  health  in  Georgia  faces  several  challenges, 
particularly  in  the  areas  of  maternal  health,  family  planning,  access  to  safe  abortion  services  and 
comprehensive sexuality education. There were no new developments on eHealth. 

On blood, tissues, cells and organs, in November 2023, Georgia adopted national legsilation to align with 
the  EU  acquis  on  organs,  tracability  requirements  for  the  coding,  processing,  preservation,  storage  and 
distribution of human tissues and cells, for the donation, procurement and testing of human tissues and 
cells, and on safe human tissues and cells for transplantation. 

Georgia is partly aligned with the EU acquis on tobacco control. In December 2023, an action plan for the 
implementation of the "State Tobacco Control Strategy 2021 - 2025" was adopted. Georgia should avoid 
adopting proposed changes to its tobacco excise tax that would be contradictory to Georgia’s international 
obligations under the WHO Framework Convention on Tobacco Control and the EU-Georgia Association 
Agreement.  

There  was no  progress  on  serious cross-border  health  threats, including  communicable  diseases,  on 
non-communicables diseases, on patient’s rights in cross-border healthcase, on medicines for human 
use, on medicines for veterinary use, on medical devices, on preventative measures, including cancer 
and  mental  health,  on  nutritional  and  physical  activity,  on  drug  abuse  and  harm  reduction,  or  on 
health inequalities. 

In regard to anti-corruption measures, the strategy for fighting corruption within the Ministry of Health is 
implemented by the Department of Internal Audit, Monitoring and Inspection.  

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).  

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Chapter 10 - Digital transformation and media   

The EU supports the smooth functioning of the internal market for electronic communications, electronic 
commerce and audiovisual services. The rules protect consumers and support the 83 universal availability 
of modern services. 

On the digital transformation strategy, Georgia still lacks an overarching digital strategy, although the 
government announced three priorities for digital development in March 2024: artificial intelligence (AI), 
development of bacteriophage technology and agrotechnology.  

On electronic communications, the e-commerce Law was adopted in June 2023. In July 2024 Georgia 
adopted  the  by-laws  completing  the  primary  legislation  on  transposing  the  Broadband  Cost  Reduction 
Directive (BCRD) first adopted in May 2023. Georgia has not aligned with the Regulation on geo-blocking 
and  the  platform-to-business  relations  Regulation.  Georgia  is  yet to  align  with the  European  Electronic 
Communications Code. The national regulatory authority is working on a broadband market analysis with 
aim  of  introduction  of  asymmetric  regulatory  obligations.  On  5G,  the  Georgian  Communications 
Commission (ComCom) launched an auction for four combined lots for the implementation of 5G internet. 
Mobile company Cellfie Mobile won the auction for the implementation of 5G mobile internet in July 2023. 
The company is allotted 700 MHz and 3400-3600 MHz frequency ranges. The terms of reference of the 
tender were drafted in line with EU standards. 

In the field of digital services, the basic legal framework on the open reuse of public sector information is 
only  partly  aligned  with  the  Directive  on  Open  Data.  Georgia  also  needs  to  undertake  efforts  towards 
alignement with the General Data Protection Regulation (GDPR)), the Digital Services Act (DSA) and the 
Digital Markets Act (DMA). Georgia participated in a two-day TAIEX workshop on the Digital Services 
Act (DSA) in Brussels on 26 & 27 June 2024. Beyond this engagement, it appears that no progress was 
made regarding alignment with the DSA and DMA.  

Georgia would benefit from aligning the strategy with the latest EU standards (AI Act) and best practice 
(EU AI innovation package). 

Authorities need to enhance efforts to align with the Digital Markets Act and the Digital Services Act. On 
digital trust and cybersecurity, the 2021-2024 cybersecurity strategy would benefit from closer alignment 
with the latest EU acquis in the field (NIS 2 Directive).   

Regarding  cross-border  interoperability,  efforts  should  be  encouraged  to  establish  a  National 
Interoperability Framework, in alignment with the European Interoperability Framework (EIF). 

On  media  regulation,  amendments  to  the  Law  on  broadcasting  were  adopted  in  October  2023.  The 
protection of minors and ensuring the absence of incitement to violence or hatred were addressed in line 
with the Audiovisual Media Services Directive. The law also introduced a self-regulation system with a 
legal backstop as recommended by the EU. Geogia should maintain efforts to ensure effective independence 
of the national media regulator.  

On media and digital literacy skills, media and information literacy (MIL) were integrated into the formal 
education  system  during  the  reporting  period,  by  adding  MIL  to  the  high  school  curriculum  and  as  an 
elective subject at universities. This was complemented by developing a MIL manual and training 1 000 
teachers.  

Chapter 16 - Taxation 

EU rules on taxation cover value added tax, excise duties and aspects of corporate taxation. They also 

68 

 
 
cover  cooperation  between  tax  administrations,  including  the  exchange  of  information  to  prevent  tax 
evasion. 

As regards indirect taxation, tax legislation on VAT is partly aligned with the EU acquis. The standard 
VAT in Georgia is 18%.  

As regards excise duty, further alignment of the legislation with the EU acquis regarding excise duty for 
alcohol and alcoholic beverages, tobacco, energy products and general rules for the production, keeping, 
storage, movement, and controls on excisable products is needed. There was no progress in reintroducing 
duties  equally  for  national  and  imported  products  as  regards  excise  duties  on  tobacco  products.  Excise 
duties on alcohol and alcoholic beverages are partially aligned. Progress is needed on energy and electricity 
products to reach the EU minimum level in taxation. The EU excise movement control system has to be put 
in place. 

As regards direct taxation, Parliament adopted in April 2024 controversial amendments to the Tax Code 
in an accelerated manner (three days). Changes create tax exemptions in the event of the transfer of assets 
of an enterprise registered in a country with preferential tax treatment (offshore area) to an enterprise in 
Georgia.  As  part  of  the  transaction  of  transfer  of  assets,  the  income  received  by  the  foreign  enterprise 
registered in an offshore area and the physical person who owns it are exempted from profit and income 
taxes. Importing an asset or goods into Georgia is also exempted from import tax. An enterprise in Georgia 
that received assets from an offshore area is exempted from property tax until 1 January 2030.   

The  EU  cooperates  with  Georgia  through  an  enhanced  dialogue  on  tax  good  governance  within  the 
framework of the EU list. 

On administrative cooperation and mutual assistance, no developments took place during the reporting 
period. Georgia is a full member of the EU Fiscalis programme. 

In  2024,  Georgia  committed  to  Automatic  Exchange  of  Information  in  accordance  with  the  Common 
Reporting Standard. 

On operational capacity and digitalisation, no developments took place during the reporting period. 

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.   

On monetary policy, the National Bank of Georgia’s (NBG) 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.  

The institutional independence of the NBG is guaranteed by the constitution and the organic Law on the 
NBG. However, as regards personal independence, the bank has been without fully-fledged leadership since 
March  2023,  when  the  term  of  the  last  governor  expired.  The  bank  is  currently  chaired  by  an  acting 
governor, who took the role following amendments adopted by Parliament in June 2023, which created a 
new position of first vice-president to assume the role of acting governor 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 personal independence 
and avoid any external interference.  

Several legal amendments aimed at strengthening the NBG’s independence have been proposed, including 

69 

 
 
limiting discretionary transfers of the bank’s profit to the government, strengthening the NBG succession 
framework and board member qualification criteria, and ensuring a non-executive majority in the NBG’s 
Board. These amendments remain outstanding. The NBG's board has currently 5 members (3 executive and 
2  non-executive  ones)  and  4  positions  remain  vacant.  The  organic  Law  on  NBG  ensures  its  financial 
independence and prohibition of monetary financing by the central bank.    

On  economic  and  fiscal  policy,  the  budgetary  framework  is  considered  strong  and  transparent,  as 
confirmed recently by the IMF’s Fiscal Transparency Evaluation for Georgia published in March 2024. 
The report underlines progress made by Georgia over the last years as regards comprehensiveness of fiscal 
reporting,  the  quality  of fiscal  forecasting  and  of fiscal risk analysis,  while  it  points at  some  remaining 
weaknesses in comparability of the main fiscal aggregates published in various government’s fiscal reports, 
reconciliation of government’s net financing and the change in the stock of debt, and external oversight of 
the government’s financial position.   

The Parliament Budget Office is considered by the authorities as an independent fiscal institution. A recent 
feasibility  study  under  the  EU  twinning  project  suggested  that  its  independence  should  be  further 
strengthened, in particular by clarifying its mandate, qualification criteria and financial autonomy.   

Georgia implements a medium-term budgetary framework that covers macro-fiscal framework over a 4-
year  period.  The  authorities  made  some  progress  on  improving  the  fiscal  oversight  over  state-owned 
enterprises (non-commercial ones) by gradually bringing their cash management under the Single Treasury 
Account. Georgia’s numerical fiscal rules set ceilings on fiscal deficit (3% of GDP) and government debt 
(60% of GDP). These rules were strictly followed before the pandemic, then suspended and complied with 
again in 2022 and 2023. Georgia’s statistical framework is not yet aligned with ESA 2010 requirements. 

In January 2024 the Georgian authorities adopted and submitted to the Commission their first Economic 
Reform  Programme,  covering  2024-2026  period,  which  includes  a  coherent  macroeconomic  and  fiscal 
framework and a presentation of envisaged selected structural reforms.  

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. 

The legal framework is partially in line with the EU acquis. The institutional framework is in place but 
needs further strengthening. Georgia still has not ratified some relevant International Labour Organization 
conventions, including those on labour inspections, occupational safety and health at work, and violence 
and harassment at work. On labour law, Georgia is partially aligned with the EU acquis but major gaps 
remain.  

On occupational health and safety at work, Georgia’s legislation is partially aligned to the EU acquis. 
While  therewas  no  progress  in  addressing  the  remaining  gaps  during  the  reporting  period,  the  Labour 
Inspection Office’s capacities – both institutional and human resources – were further strengthened.  

During 2023, 34 people died (35 in 2022) and 347 were injured (253 in 2022) as a result of accidents in the 
workplace.  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. 

On social dialgoue, the tripartite dialogue is functioning at national level and in one region. There was no 
progress related to collective bargaining. Capacity building for social partners needs to be stepped up. 

On employment policy, the new national strategy of labour and employment policy for 2024-2028 is in 

70 

 
 
preparation. Capacities of the State Employment Support Agency (SESA)were developed and strengthened 
during the reporting period and further work is needed in particular to improve access to its services in the 
regions.  

The overall labour force participation rate in 2023 was 53.3%, women labour force participation rate being 
43.1% and that of men 65.1%. In 2023, 15 899 supported jobseekers were employed in the open labour 
market. The governments’s first public works programme, meant to facilitate labour market participation 
of people in vulnerable situations, was extended into 2024.   

The unemployment rate in 2023 in Georgia was 16.4%, down from 17.3% in 2022, and 20.6% in 2021. 
The unemployment rate in 2023 among men was higher than among women (18.3% vs 14.0%) as well as 
the employment rate (53.2% vs 37.1%). However,  the gender pay gap remains a problem, with the average 
wage of women constituting 31.7% of men’s wage. The share of NEETs (young people aged 15-29 not in 
employment,  education  or  training)  was  21%  in  2023  (down  from  26.8%  in  2021)  but  remains  high. 
compared to the EU average (12.5% in 2023). 

Undeclared work remains a challenge, with approximately a third of the population of working age being 
engaged  in  non-agricultural  undeclared  work  in  2023  (27.46%).  More  men  were  engaged  than  women 
(32.46% vs 21.7%) and more in rural areas than in urban (32.7% vs 25.4%).  

On social protection and inclusion Georgia lacks a comprehensive and targeted social protection system 
that  supports  employment  policies.  In  July  2023  the  “one  window”  principle  was  approved  for  state 
employment and social support services. The first office applying this principle was opened in Tbilisi in 
December 2023. In July 2023 child cash benefits were increased by 30% reaching 232 462 children (26% 
of the child population). In 2023, the share of the population under absolute poverty line was at a “historic 
low” at 11.8%, although the GINI coefficient slightly increased indicating inequalities remain high.  

On non-discrimination in employment and social policy, the enforcement of the Law on the elimination 
of all forms of discrimination is weak. Concrete steps to enhance the effectiveness of the legal framework 
in  combating  discrimination  are  urgently  needed,  including  in  terms  of  policy  measures  and  funding 
programmes. In this context, the legislative package consisting of the Law on family values and protection 
of  minors  and  eighteen  amendments  to  existing  laws  adopted  on  17  September  2024,  appears  to  target 
LGBTIQ persons and thus constitutes a movement in the wrong direction, potentially also in the light of 
Council Directive 2000/78/EC. 

Georgia still lacks a national strategy on the de-institutionalisation of children and provision of alternative 
care, even though the government continues closing large children’s institutions and transferring children 
to alternative services. In December 2023 a medical social centre for long-term paediatric care was set up, 
providing children with specialised, long-term, complex medical and social support.  

Enforcement of the Law on the elimination of all forms of discrimination is weak.   

71 

 
 
segregation 

As  regards  equality  the  basic 
institution  and  provisions  exist 
in current legislation. However, 
women’s 
by 
industry  and  occupation—and 
in 
degree 
humanities, 
and 
health  care—confines  them  to 
economic  activity  with  lower 
earnings. Unpaid household and 
care  work  by  women  is  five 
times  higher  than  that  by  men, 
prevailing 
mainly 
stereotypes 
limited 
availability  and  accessibility  of 
various  care  services  and  local 
transportation, which are also the main reasons for women’s limited participation in the labour market. 
Women are more often the beneficiaries of state social assistance than men, and the gender pay gap shows 
women earn 24.6% less than men.  

concentration 
education, 

to 
and 

due 

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. 

As  regards  industrial  and  enterprise  policy  principles,  Georgia  does  not  have  a  separate  industrial 
strategy  document.  Georgia’s  industrial  policy  is  based  on  the  development  strategy  of  Georgia-Vision 
2030,  the  government  programme  For  Building  a  European  State  (February  2024).  An  update  to  the 
investment  promotion  strategy  and  action  plan  2020-2022  is  overdue.  The  adoption  of  a  green  growth 
strategy, that could cover decarbonisation, is still outstanding.  

There has been no progress in reforming state-owned enterprises. The scope of applying regulatory impact 
assessment remains limited.  

The  SME  policy  environment  in  Georgia  is  generally  considered  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.  A  new  national  strategy  for  financial  education  was  adopted 
recognising SMEs as a target group. 

Enterprise  Georgia  (EG)  added  to  the  business  universal  progamme  –  a  programme  ailing  at  boosting 
competitiveness of the private sector  - renewable energy production as a new economic activity. In the 
reporting period, EG supported through the programme 489 beneficiaries and approved EUR 147 million 
in loans and leases.  

As regards industrial and enterprise instruments, alignment is needed with the Late Payment Directive. 
This includes, in particular, introducing provisions on payment terms to address both late payments and 
long payment terms in G2B (public authorities to businesses) and B2B (business to businesses) commercial 
transactions, and on late payment interest. 

72 

 
 
No  steps  were  taken  to  implement  the  cluster  development  framework.  There  are  no  developments  on 
sectoral policies.  

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 continued to make steps to modernise its research and innovation policy and to align it with EU 
acquis. The most positive developments can be noted in the field of innovation support. A lively start-up 
scene has emerged, driven by private sector initiatives and public support from the Georgian Innovation 
and Technology Agency (GITA), which launched a new national funding programme complementary to 
technology transfer and a co-funding mechanism for technology development.  

Cooperation between research and industry is still lackings. The development of a sustainable innovation 
ecosystem between academia, research and business would improve national and regional excellence and 
competitiveness, if innovation is promoted in line with the 5 flagships of the New European Innovation 
Agenda. 

As regards strenghening the implementation and internationalisation of sector-specific scientific priorities, 
in light of limited budgets, and the overall size of the research system there is a need to focus on a limited 
number of promising R&I fields to be supported at a level that allows them to support local industry with 
research and to compete internationally. A national open science cloud was created and universities have 
introduced some open access initiatives. The Shota Rustaveli National Science Foundation of Georgia has 
set up a specific funding line for open science. 

The  design  of  the  smart  specialisation  strategy  in  the  pilot  region  of  Imereti  is  in  the  final  stage  of 
stakeholder consultation before the approval process.  

Georgia is associated to Horizon Europe. It received EUR 1.5 million for 8 projects in 2023, an increase of 
more  than  50%  compared  to  2022.  In  the  absence  of  the  necessary  statistical  indicators  Georgia  is  not 
included in the European Innovation Scoreboard. Several measures were implemented in 2023 aiming to 
increase the participation of Georgian entities in Horizon Europe including a researcher mobility scheme. 

Gross domestic spending on R&D (GERD) as a share of GDP has been around 0.28% for several years, 
and decreased since 2020. However, in the course of 2023 a 30% increase in salaries for researchers was 
applied,  which  is  an  important  step  towards  making  research  careers  more  attractive.  In  spite  of  this 
encouraging move, R&I expenditure still needs to increase. 

Chapter 26 - Education and culture  

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

On education and training,  Georgia’s PISA 2022 results showed that a significant number of 15-year 
olds are failing to demonstrate basic proficiency (level 2), namely 66% in maths, 67% in reading and 65% 
in science, and girls consistently outperform boys in reading. 

Government expenditure on education in 2023 amounted to 3.76% of GDP. Digital citizenship and green 
skills are reflected as pervasive skills in the national curriculum at primary, basic and secondary levels. 

73 

 
 
In  line  with  the  unified  national  strategy  of  education  and  science,  new  “State  standards  for  early  and 
preschool care and education” were adopted in July 2023 with a focus on inclusive early childhood and 
preschool  education.  In  October  2023,  Georgia  joined  the  International  School  Meals  Coalition  "Food, 
Health and Education for All Children" and adopted minimum requirements for operating catering services 
in schools.  

In November 2023, an amendment was introduced to the Law on general education, which creates the basis 
for the implementation of a new system supporting inclusive education. The amendment entered into force 
in June 2024. 

In  the  field of  vocational education  and training  (VET),  in  August  2023,  a  new  methodology for the 
development  of  VET  qualifications  was  adopted.  Extracurricular  activities  are  carried  out  in  VET 
institutions in the regions. Work on the 2024-2028 VET Strategy and Career Management Services Strategy 
2024-2027 resumed in March 2024 and their adoption is expected in the coming months. 

A concept on digitalisation of VET applying the DigCompOrg framework as a reference was developed in 
2023. Further efforts are needed to align digital education with the EU Digital Education Action Plan 2021- 
2027.  In  March  2024,  Parliament  ratified  the  Global  Convention  on  the  Recognition  of  Qualifications 
concerning Higher Education. A 2024-2030 strategy for professional orientation, counselling, and career 
guidance across all levels of formal education was approved on 27 August 2024. 

The  accessibility  of  vocational  education  for  women  is  constrained  by  limited  geographical  coverage, 
particularly in rural areas. The lack of care services and transportation options presents further challenges 
for women pursuing VET. 

As a new member of the Advisory Group of the European Qualifications Framework (EQF), Georgia is 
preparing to reference its National Qualifications Framework to the EQF. According to the Bologna Process 
implementation  report  2024,  Georgia  still  needs  to  work  on  the  full  implementation  of  the  key 
commitments, such as the Bologna degree structure and automatic recognition. Also Georgia scores below 
average when it comes to alignment with the social dimension of the European Higher Education Area. 

Georgia benefits from the international dimension of the 2021-2027 Erasmus+ programme, and is taking 
part  in  the  European  Education  Area  working  groups  2021-2025.  In  January  2024,  Georgia  joined  the 
Eurydice Network, whose task is to explain how education systems are organised in Europe and how they 
work. 

Youth policy and the Youth Agency moved to the Ministry of Education and Science in January 2024 and 
a new Youth Department is being set up. A concept paper and action plan for Youth Entrepreneurship for 
the  period  2023-2026  was  developed  in  2023.  Some  progress  was  observed  in  youth  participation  in 
policymaking at national and local levels. Thirty-one municipalities created specialised Municipal Youth 
Councils,  with  approximately  50%  of  their  activities  involving  annual  budgeting.  Decisions  on  youth-
related matters are often based on recommendations by these Councils. 

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, cultural policy documents and programmes, including the 2020-25 Culture Strategy, reflect the 
general priorities of the New European Agenda for Culture. There is limited dialogue on cultural policy 
between the government and civil society in general. Georgia continues to participate fully in the Culture 
and Cross-Sectoral strands of the Creative Europe Programme and partially in the MEDIA strand. 

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Chapter 29 - Customs union  

All EU Member States are part of the EU customs union and follow the same customs rules and procedures. 
This requires legislative alignment, adequate implementing and enforcement capacity, and access to and 
interoperability with the EU electronic customs environment. 

Customs legislation 

The Georgian customs code is partly aligned with the Union Customs Code. It will further align, once the 
duty relief provisions of the Code enter into force on 1 January 2026. Nevertheless, further alignment, in 
particular in the area of customs procedures, is needed. 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.  

As of April 2024, there are 12 authorised economic operators (AEOs) active in Georgia (in August 2022 
there were two). 

Development of theregulatory and technical framework for the Common Transit procedure and the New 
Computerised  Transit  System  (NCTS)  is  complete.  In  June  2024,  the  monitoring  mission  by  the 
representatives of the Contracting Parties to the Common Transit Convention recommended to launch the 
accession procedure for Georgia with target date 1 December 2024. The conformance testing of the national 
transit application was successfully completed in mid-August 2024. 

Cross-border smuggling of tobacco products and other illicit activities in the regions close to the breakaway 
regions is a standing issue. It is recommended that Georgia strengthens its measures to combat customs 
fraud,  also  in  cooperation  with  OLAF,  and  accedes  to  the  World  Health  Organization  Framework 
Convention on Tobacco Control Protocol to Eliminate Illicit Trade in Tobacco Products. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

The cluster on Green Agenda and sustainable connectivity covers: transport policy (Chapter 14); energy 
(Chapter 15); trans-European networks (Chapter 21); and environment and climate change (Chapter 27).  

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,  multimodal transport, aviation and 
maritime transport. 

The legal framework is partially in line with the acquis and the institutional framework is mainly in place 
but needs strengthening. On  general transport, the national transport and logistics strategy is in force. 
Georgia is an observer member of the Transport Community Treaty and is collaborating proactively within 
the  treaty’s  structures.  Tbilisi  and  Batumi  developed  clean  city  action  plans  and  sustainable  urban 
mobility/sustainable urban transport strategies and started their implementation. 

On  road  transport  and  road  safety,  the  action  plan  2024-2025  of  the  2022-2025  national  road  safety 
strategy was adopted. Road safety remains a concern with higher levels of fatailities than the EU average. 
In 2023, there were 5 594 crashes with 442 fatalities (compared to 5 569 crashes with 430 fatalities in 2022). 
A Road Safety Department was created under the Ministry of Economy and Sustainable Development in 
February 2024. The Secretariat of the Regional EaP Road Safety Observatory, based in Tbilisi, started its 
activities in February 2024. 

Georgia is still to adopt main acquis related to social legislation in road transport such as the Regulation on 

75 

 
 
 
driving and rest times; 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. On dangerous 
goods, Georgia should extend the scope of its legislation to national operations with dangerous goods, in 
line with the Agreement concerning the International Carriage of Dangerous Goods by Road.  

On market access, the Law on motor transport adopted in November 2023  lays down common rules on 
conditions to be complied with the occupation of road transport operators. 

On rail transport, the Railway Transport Agency, created in July 2023, acts as the national safety authority 
and independent safety supervisory agency. The national accident investigating body has not been set up 
yet. Georgia adopted its new rail strategy in 2023, which sets out the next steps for alignment with the EU 
acquis. However, further efforts are needed to address the fourth railway package, particularly its market 
pillar. The legal framework on transport of dangerous goods, certification of train drivers, interoperability 
of the rail system and safety on railways is partially aligned with the relevant EU acquis. 

On maritime transport, Georgia is progressing towards the establishment of the Maritime Single Window. 
A pilot version of the system was launched in January 2024 and the Maritime Code was amended in June 
2024  in  line  with  the  European  Maritime  Single  Window  environment  Regulation.  National  legislation 
needs to be further aligned with the maritime transport acquis. 

On civil aviation, building on the implementation of the EU-Georgia Common Aviation Area Agreement, 
Georgia  implemented  partially  the  aviation  acquis  governing  market  access,  air  traffic  management, 
aviation safety, security, environment, social aspects, EU consumer protection acquis is fully implemented.  

There are no provisions on multimodal transport. 

There are some provisions on EU passenger rights regarding air transport sector that would have been 
implemented by Georgia. Further efforts are needed to improve passenger rights in all modes of 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  developed  a  suitable  regulatory  framework  and  liberalised  its  energy  in  line  with  the  Energy 
Community Treaty requirements although is still delayed with the transposition and implementation of the 
Electricity Integration Package. Georgia currently has no direct connection to energy networks of any EU 
or Energy Community Treaty contracting party. The Third Energy Package has been aligned with, although 
not fully implemented (i.e. unbundling, market opening). The Clean Energy Package is yet to be aligned 
with.  

Georgia made some progress on the main overarching strategic documents on energy policy. Parliament 
has officially approved the State’s Energy Policy (NEP) and its annex – the National Energy and Climate 
Plan  (NECP)  in  June  2024.  Georgia  has  aligned  with  most  of  the  provisions  of  the  Risk-preparedness 
Regulation into its Electricity Security of Supply Rules. Georgia has not yet aligned with Regulation (EU) 
2017/1938 concerning measures to safeguard the security of gas supply and there has been no progress in 
aligning with and implementing the Oil Stocks Directive. Moreover, Georgia does not have emergency oil 
stocks to ensure security of supply. Georgia is exempt from the application of the related networks codes 
and guidelines. Through an agreement signed with ENTSO-E in October 2023, the transmission system 
operator (TSO) committed to ensure the reliability and required quality of information published on the 
Transparency  Platform.  It  also  closely  cooperates  with  the  Turkish  TSO  to  sign  inter-TSO  operating 
agreements for the planned opening of the balancing and ancillary services market in July 2025. In parallel, 

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the electricity and gas TSOs in Georgia are not unbundled. Amendments to the primary legislation are also 
needed for the proposed solution to be implemented. 

In the electricity sector, amendments to the Electricity market Concept Design were adopted, postponing 
the launch of a balancing and ancillary services market to July 2025. The day-ahead and intraday market 
opened on 1 July 2024, with the settlement period of one month. The market model operational before 
opening of the day-ahead and intraday markets is also maintained. Electricity production is still largely 
regulated with the deregulation schedule until 2027 for hydro power plants with a capacity not exceeding 
120 MW. On 1 May 2024, an important milestone in the deregulation of electricity producers was reached 
and hydro power plants with an installed capacity of no more than 75 MW were deregulated. 

All customers are envisaged to be gradually deregulated (except small enterprises and households) by July 
2026 under the Electricity Market Model Concept Design. All customers, including households and small 
enterprises have the statutory right to switch supplier and purchase electricity from a deregulated supplier. 
The second renewable capacity auction was conducted for 800 MW capacity in late 2023.  

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 to or imported from its neighbours, 
including Türkiye, depending on the season. 

Georgia is also experiencing delays in creating a competitive organised gas market. In 2023, the Energy 
Exchange (GENEX) was tasked with developing a gas exchange, tangible progress has yet to be seen. There 
are delays in unbundling gas TSO and biggest DSOs, having more than 100 000 customers. The security of 
gas  supply  framework  has  to  be  aligned  with  Regulation  (EU)  2017/1938  as  adpted  for  the  Energy 
Community  which  was  due  by  31  December  2022,  including  the  development  of  a  Risk  Assessment, 
Preventive Action Plan and Emergency Plan by 1 May 2024. 

In the area of renewable energy, the 2030 renewable targets in the draft NECP are in line with Georgia’s 
legal obligations under the Energy Community Treaty. To fully align with and implement the Renewable 
Energy Directive II (REDII), it is crucial to adopt amendments to the renewable energy Law. In particular, 
provisions related to the sustainability and greenhouse gas emission saving criteria for biofuels, bioliquids, 
and biomass from REDII are needed. 

As of January 2024, the total installed capacity of the renewable electricity producers benefitting from the 
net metreing scheme  reached 67 MW. In February 2023, Georgia became the first Contracting Party to 
launch  an  electronic  registry  for  guarantees  of  origin  (GOs)  under  the  umbrella  of  the  regional  project 
implemented  by  the  Energy  Community  Secretariat.  There  was  no  significant  progress  concerning  the 
integration of renewable energy in the heating and cooling sector nor in the transport sector.  

The  ongoing  legislative  work  prioritises  energy  efficiency:  the  amendments  to  the  Law  on  energy 
efficiency and amendments to the Law on energy efficiency in buildings (transposing 2018 amendemnst of 
the Energy Efficiency and the Energy Performance of Buildings Directives)  have been adopted in June 
2024.  

While the law on energy performance of buildings and key pieces of implementing legislation are in place, 
the long-term building renovation startegy still needs to be finalised. 

On nuclear energy, nuclear safety and radiation protection, the Law on radiation protection, nuclear 
safety  and  security  was  adopted  in  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  also still has to consider accession to the Convention on Nuclear Safety. 

On nuclear safeguards, upon EU accession, the existing systems of accountancy and control of nuclear 

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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  

The  EU  promotes  trans-European  networks  (TENs)  in  the  areas  of  transport,  telecommunications  and 
energy to strengthen the internal market and contribute to growth and employment. 

The  Trans-European  Transport  Networks  (TEN-T)  are  extended  to  Georgia.  Developing  transport 
infrastructure is listed in key strategic documents, such as the 2021-2024 Towards Building a European 
State programme and the 2023-2030 National Transport and Logistics Strategy.  

The Georgian indicative network consists of 709 km of railways (of which 605 km are on the core network), 
856 km of motorways (of which 769 km are on the core network), three ports (one of which is core) and 
one core airport.  

The road infrastructure quality of the core network is satisfactory with 52% rated as very good or good in 
2023. Together with the extensive network, only 20% complies with TEN-T standards. Construction of the 
Grigoleti - Kobuleti Road Section of the E-70 Highway is finalised. 

On railways, authorities are addressing bottlenecks that have been have identified on the core network via 
the  railway  modernisation  project.  The  modernisation  project  is  close  to  be  completed  and  works  are 
expected  to  be  finalised  by  the  end  of  2024.  The rail network infrastructure  and  rolling stock are  often 
obsolete  with  respect  to  quality,  capacity  and  safety  standards.  The  design  line  speed  on  the  whole 
comprehensive  network  is  far  below  the  TEN-T  requirement  for  freight  lines.  Only  37 km  of  the  core 
network can accommodate freight trains of 740 m. The core network has not yet implemented the European 
Rail Traffic Management System (ERTMS).  

The Baku-Tbilisi-Kars railway line is another major railway project, which is now 100% complete and the 
first freight trains departed in May 2024. In October 2023 a joint venture was created between Georgian, 
Kazakh and Azerbaijani railways to create a single operator, focusing on unifying tariffs and handling all 
cargo in the Trans-Caspian Transport  Corridor.  

Georgia needs to align with and implement the revised trans-European energy infrastructure (TEN-E) 
Regulation as adapted and adopted by the Energy Community Ministerial Council Decision in December 
2023. The national competent authority for energy infrastructures has not been established. Establishing it 
may help the TSO (GSE) to further develop the most important strategic projects. 

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. 

Environment  

Georgia  has  some  level  of  alignment  with  EU  horizontal  legislation.  Environmental  policy 

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implementation,  monitoring  and  enforcement  represent  a  challenge,  notably  due  to  limited 
administrative capacity. A new IT portal to ensure public access to environmental information was launched 
in July 2023. Legislation on environmental impact assessments is in place and guidelines for its effective 
implementation were updated. Georgia needs to ensure the quality of the preparation and implementation 
of environmental investments - including the transparency of procedures, compliance with EIA/SEA and 
other elements of the horizontal acquis. Georgia is not a party to the Espoo Convention. The country signed 
but  has  not  ratified the  protocol  on startegic  environmental  assessment.  Significant capacity  constraints 
remain  in  implementing,  monitoring  and  enforcing  the  Environmental  Assessment  Code.  Fines  were 
increased through amendments to the Administrative Offence Code and Criminal Code.  Georgia should 
also ensure that environmental monitoring meets EU standards. 

On air quality, Georgia is partially aligned with the EU acquis, implementation and enforcement should 
be  further  strengthened.  A  new  system  for  the  air  quality  monitoring  system  is  being  developed,  and 
additional air quality monitoring stations were puchased during the reporting period. An emission inventory 
was developed for the Western Zone. The Air Quality Plan for the Central Zone was approved in August 
2023 with the aim of reducing air pollution across the zone, especially in the industrial city of Rustavi. The 
technical regulation on the control of volatile organic compound emissions was adopted in April 2024. On 
the  alignment  with  the  National  Emission  reduction  Commitments  Directive,  progress  was  made  on 
emission projections and inventories. In June 2023, the Law on vehicle emissions was adopted and EURO-
5/V vehicle emission standards entered into force in January 2024 for M1 and M2 category vehicles.  

Georgia is at an early stage of alignment with EU noise legislation. Amendments laying down the noise 
norms were adopted in November 2023. The preparation of the strategic noise maps and action plans needs 
to start. 

Alignment  with  the  EU  waste  management  and  circular  economy  legislation  is  at  an  early  stage  and 
significant investment is needed. Alignment with the revised Waste Framework Directive, and all relevant 
waste streams legislation needs to be further consolidated. Amendments to the Waste Management Code 
were made in February 2024 to broaden the obligations of Extended Producer Responsibility organisations 
as well as to lay down the administrative sanctions for  non-compliance. Significant investments remain 
needed  to  modernise  the  waste  management  system  and  put  in  place  waste  collection  and  treatment 
infrastructure, especially at municipal level. 

In the area of water quality, a new Law on water resources management was adopted in June 2023. A 
water information system has been developed. The monitoring network for surface water and groundwater 
has been expanded and the country conducts hydrobiological monitoring of coastal waters of the Black Sea. 
Georgia should further improve the legal framework for the protection of marine environment, in line with 
the  2022  fourth  national  environmental  action  programme.  Georgia  is  not  yet  party  to  the  UNECE 
Convention the on the Protection and Use of Transboundary Watercourses and International Lakes (Water 
Convention).  The  upgrade  of  the  national  analytical  laboratories  and  monitoring  facilities  of  national 
institutions is ongoing.  

There is good alignment on nature protection and administrative capacity was significanty increased. The 
current Emerald Network presents a sufficiency rate to achieve the network objectives by only 30% despite 
the relatively constant progress. Georgia should continue to prepare to identify and pre-designate sites that 
will be covered by the Natura 2000 network. Protected areas currently cover 13% of the national territory. 
Georgia needs to update its national biodiversity strategy and action plan. A national forestry inventory was 
prepared. 

On the EU acquis on industrial pollution control and risk management, Georgia adopted the Law on 

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industrial emissions at the end of June 2023, to gradually enter into force as of 2026.  Work towards the 
creation of a single national pollutant release and transfer register needs to be accelerated.  

The level of transposition of the chemicals management acquis is limited and important provisions are 
missing. Significant enforcement and implementation efforts are needed.  

Georgia  made  progress in building the capacity  of its  civil  protection  and  disaster risk  management 
system at central and local levels. Preparedness and prevention measures for such hazards as floods and 
draughts  have  been  put  in  place.  The  flood  forecasting  system  has  been  expanded,  drought  monitoring 
system  was  adopted  and  landslide  monitoring  systems  were  installed  in  11  locations.  In  addition,  the 
number of hydrometeorological stations was increased to a total of 169 and maps for geological hazards 
were prepared. Amendments to the Code on Spatial Planning, adopted in December 2023, minimise and 
prevent violations of unauthorised constructions in cultural heritage protected zones. Following Georgia’s 
application to join the Union Civil Protection Mechanism (UCPM) in March 2023, the Commission and 
Georgia were in technical discussions for the accession to the Mechanism. Due to political developments, 
the procedure for the signature of the UCPM agreement was stalled since May 2024.   

Climate change 

There were no significant developments on climate change and alignment with the EU acquis still remains 
limited including on obligations under the Energy Community Treaty. Based on the long-term low-emission 
development  strategy  adopted  in  2023,  which  includes  a  climate-neutrality  target  by  2050,  Georgia  is 
actively preparing a new Nationally Determined Contribution, adopted a 2030 climate change strategy and 
a 2024-2025 action plan. Georgia is preparing a climate change law, which is however not adopted yet. 

As a Contracting Party to the Energy Community, Georgia adopted their National Energy and Climate Plan 
in June 2024. In line with the Energy Community’s Decarbonisation Roadmap, Georgia needs to urgently 
roll out a robust monitoring, reporting, verification and accreditation (MRVA) framework for greenhouse 
gas emissions as a necessary first step towards carbon pricing. An MRV system supporting the national 
greenhouse gas inventory should also be established. 

Georgia is a party to the Montreal Protocol on substances that deplete the ozone layer and the Parliament 
ratified the Kigali Amendment to the Montreal Protocol in June 2023. 

Georgia made some efforts to increase administrative capacities; however, overall, these capacities remain 
low and need to be further strengthened in terms of human and financial resources. Georgia still needs to 
strengthen mainstreaming of climate considerations in all policy areas. Consideration ought to be given to 
aligning with major upgrades of the EU climate policy as a result of the Fit for 55 package. 

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). 

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 

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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. 

On horizontal issues, the agriculture and rural development strategy 2021-2027 (ARDS) has an overall 
objective to sustainably diversify and develop economic opportunities in rural areas and improve social 
conditions and the quality of life. 

Georgia has taken initial steps to set up an integrated administration and control system (IACS) in line with 
the EU acquis. The Law on agriculture and rural development adopted in June 2024 lays down provisions 
setting out the role and powers of the Rural Development Agency (RDA) as a paying agency. The RDA is 
already  implementing  support programmes to the  sector  and  can  provide  financial  support to the  Local 
Action Group of the LEADER approach at municipality level. A Land Parcel Identification System (LPIS) 
is being tested in two municipalities. Progress is needed towards a full-scale LPIS for the entire country. In 
2023 the National Wine Agency completed its vineyard register.   

There is no farm sustainability data network (FSDN). A  farm advisory system operates under the Rural 
Development Agency providing information at centres across the country. 

On common market organisation, alignment with the EU acquis remains limited mostly in relation to 
certain marketing standards, Georgia should make efforts to fully align with the EU acquis. There is some 
level of preparation with existing sectoral associations. 

On rural development, a new action plan covering the 2024-2027 period was approved in February 2024, 
aimed at implementing the ARDS but also addressing 2023 recommendations, with specific measures to 
further implementation of approximated legislation.  

As  regards  quality  policy,  legislation  on  protection  and  use  of  protected  designations  of  origin  and 
geographical indications aligning with the EU acquis will enter into force in November 2024. 

In the area of organic farming, the list of authorised products and substances for use in organic production 
was approved in April 2024, further aligning with the EU acquis.  

Chapter 12 - Food safety, veterinary and phytosanitary policy  

The EU food acquis including hygiene rules for foodstuff production ensure a high level of food and feed 
safety and a high level of protection of consumers’ interests. Animal health and welfare and the safety of 
food of animal origin are safeguarded together with quality of seeds, plant protection material, protection 
against harmful organisms and animal nutrition. 

In the area of general food safety, food safety rules and specific rules for feed, Georgian producers have 
not yet obtained authorisation for the export to the EU of queen bees and fishery products from aquaculture. 
Budgetary allocations have increased in 2023 and 2024 but are insufficient to effectively implement some 
aspects of the new legislative framework. Meeting the EU requirements for hazelnuts remains difficult for 
Georgia. The EU has reduced from 30% to 20% the regulated import controls to detect contamination with 
aflatoxins since the competent authority has been implementing the recommendations of the October 2023 
Commission audit of the control system in place to prevent aflatoxin contamination. 

Legislation and organisation of the control system is partially in line with the EU  acquis and should be 
consolidated  with  the  approximation  of  the  EU  2017/625  regulation  on  the  official  control.  National 
legislation and implementing rules for export to the EU are generally in line with EU requirements. The 
competent authorities were certified for the Quality Management System (ISO 9001:2015) of their food 
safety control system. The State Laboratory of Agriculture has become a national reference laboratory with 
a larger range of diagostic capacities and internationally accredited methods for testing parameterrs under 

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the official controls, but 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,  except  a  regulation  for  the  trade  and  transportation  of  pigs.  Georgia  continued  to  carry  out 
activities to control, prevent and eradicate communicable animal diseases in line with the ‘One Health’ 
approach and introduced a compensation mechanism in case of an anthrax outbreak. The National Animal 
identification and Traceability system is now fully operational9. National legislation to align with the acquis 
on crisis management is not yet in place. 

During the reporting period the State Laboratory for Agriculture has developed its capacities to test fish 
and mollusc  diseases in line  with the  EU  Council  Directive  2006/88 on animal health requirements for 
aquaculture  animals  and  products  thereof,  and  the  prevention  and  control  of  certain  diseases  in  aquatic 
animals. 

As  regards  placing on the  market  of  food, feed  and  animal  by-products,  the  National  Food  Agency 
continued to carry risk-based official checks. Business operators producing, processing and distributing 
food  of  animal  origin  are  registered  in  the  registry  of  economic  activities  and  the  competent  authority 
maintains  the  list  of  approved  establishments.  The  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 the EU’s trade control and export system, notably on issuing electronic certificates and 
five out of ten border inspection posts need to be upgraded with infrastructure and equipment.   

On phytosanitary policy, considerable implementing legislation to align with the EU acquis is in place. 
Relevant businesses in the field of plant health are  registered in the register of economic activities and 
monitored by the competent authority. The maximum residue levels of pesticides for food, feed, plant and 
animal origin is in accordance with Regulation EU 396/2005. As regards genetically modified organisms, 
the implemention of the approximated regulations remains challenging.  

An oustanding issue is the appropriate budget and staffing of the institutions to show evidence of the scope 
and intensity of the control system in place based on a risk analysis. The private sector awareness and their 
self-control of food safety should continue to improve.  

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. 

The legal framework is partially in line with the acquis. The institutional framework and the administrative 
capacity  need  further  strengthening.  Legislation  effectively  sets  out  the  basic  requirements  such  as  the 
obligation of the flag state, coastal state, port state and market state  

Georgia manages the fisheries resources based on scientific advice and data collection. The data collection 
framework  needs  to  be  strengthened  and  aligned  with  the  EU  acquis.  There  is  no  progress  reported  in 
reducing by-catch efforts of sensitive species and promoting the use of selective gear. There is constructive 
cooperation  as  part  of  the  bilateral  EU-Georgia  dialogue  in  the  fight  against  illegal,  unreported  and 
unregulated (IUU) fishing, though a proper level of implementation has yet to be achieved. As of April 
2024, importations into the EU of fishery products covered by the EU IUU Regulation 1005/2008, fished 

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by  Georgian  vessels  and  accompanied  by  a  catch  certificate,  validated  by  the  notified  authority,  are 
authorised. 

A fleet management system is in place with a fishing vessel register  and monitoring of fishing activities 
for fishing vessels larger than 15 m length overall. The fleet is composed of 53 fishing vessels in  2024, 
operating  in  the  Black  Sea.  The  reporting  for  information  linked  to  fishing  activities,  namely  catches, 
quantities and species, fishing effort, is weak and enhanced efforts are needed to operationalise the reporting 
system. 

The inspection and control system has been strenghtened with the acquisition of a patrol speedboat but an 
overall approach to a comprehensive fisheries monitoring, control and surveillance scheme in line with the 
EU acquis is still needed, also in consideration of the recent revision of the EU fisheries control system. 
Furthermore, as regards compliance and as advised by the GFCM Compliance Committee, Georgia needs 
to step up its efforts to implement effectively the GFCM recommendations and to fulfil its international 
obligations. Georgia has no specific structural actions for fisheries.  

On market policy, Georgia needs to align with the EU Common Market Organisation (Regulation (EU) 
No 1379/2013). There is some level of preparation with existing fishing and aquaculture associations but 
the legal framework of recognition of professional organisations, or provisions on consumer information 
such as producer or inter-branch organisations are not yet in place. 

There were no significant developments on state aid.  

On international agreements, Georgia is still in the process of assessing the implications of upgrading its 
current Cooperating Non-Contracting Party status to a Contracting Party of the GFCM, and cooperates at 
regional level under the Common Maritime Agenda. 

 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. 

A number of initiatives – mostly implementing legislation - related to transferring certain administrative 
rights and types of property were adopted during the reporting period. The Law on tourism, which aims to 
increase the authority of the municipality in the area of tourism development, was adopted in December 
2023. Amendments to the Law on local fees were adopted in the same month, introducing a new type of 
local fee. 

The  smart  specialisation  strategy  for  the  Imereti  region,  which  was  prepared  with  support  from  the 
European  Commission  Joint  Research  Centre,  was  adopted  in  April  2024.  After  completing  the  High 
Mountain Settlements Development Strategy 2019-2023, efforts are now focused on the development of 
the 2024-2030 strategy along with the 2024-2026 action plan, which was approved by the Government in 
June  2024.  The  strategy  focuses  on  creating  attractive  conditions  for  living  and  working  for  youth  and 
working-age populations. 

Since the beginning of the implementation of the Decentralisation Strategy (from 2020 to 2023), more than 
6 000 real estate units have been transferred to municipalities. At the end of 2023, mid-term development 
strategies along with action plans and budget costs have been approved in 33 municipalities, following due 

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public  discussions  and  people’s  involvement,  as  outlined  in  the  ‘Municipality  Development  Planning 
Guide’. 

In parallel, Georgia actively participates and is also gaining administrative capacity through the 2021-2027 
Interreg Black Sea programme. 

Monitoring data are collected according to the methodology approved by the government commission of 
regional  development, first  set  up  under the  Integrated  Territorial  Development 2020-2022 programme. 
The  subsequent  2024-2026  programme  will  gather  data  based  on  the  monitoring  system.  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.  

In December 2023, the first consolidated Annual Monitoring Report was prepared and published by the 
Ministry  of  Regional  Development  and  Infrastructure,  in  accordance  with  the  existing  Manual  for 
Monitoring  the  Implementation  of  the  Harmonisation  Plan  for  introducing  NUTS  (Nomenclature  of 
Territorial Units for Statistics).  

Evaluations of the programmes are practised on an ad hoc basis and mostly conducted by external experts, 
with the support of international partners. 

On financial management, control and audit, the financial framework does not allow budget flexibility 
in terms of carryover to the next year’s budget. The financial management and control system for EU funds 
(Mayors for  Economic  Growth  and  EU  for  Integrated  Territorial  Development)  in  place  is  entrusted  to 
Georgian authorities. The Internal Financial Control system (as described in Chapter 32) remains weak. 

There is no social fund that would be equivalent or similar to the European Social Fund. 

Internal audits are carried out in (i) line ministries and Autonomous Republics; (ii) legal entities of public 
law and state-owned enterprises; and (iii) local administrations. External audits are performed by the State 
Audit Office (SAO). The SAO has a commitment to audit municipalities every 3 years.  

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. 

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 setting up 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 

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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).  

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. 

The  legal framework  is  in place  and is  partially in  line  with the  acquis.  The institutional framework  is 
functioning.  

On  the  common  commercial  policy,  Georgia  has  shown  good  administrative  capacity  in  managing  its 
commitments  in  external  commercial  relations,  as  a  WTO  member.  The  country  joined  the  Ministerial 
Declaration  on  the  Investment  Facilitation  for  Development.    Georgia  continues  to  observe  fisheries 
subsidies and positively considers joining the WTO Agreement on Fisheries Subsidies Agreement. 

The country should focus on removing regulatory constraints to improve the investment climate including 
the wider legal framework, investment promotion strategy and 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. 

On dual-use items, export controls on dual-use goods continued to be applied in accordance with the 2013 
Law on the control of military and dual-use goods that was amended in 2019. Overall, there is a satisfactory 
level of checks and monitoring of the dual-use and 38 battlefield products, put in place by the Georgian 
authorities  to  avoid  being  used  to  circumvent  sanctions  against  Russia.  Georgia  should  develop  its 
legislation covering export controls on goods that could be used for capital punishment, torture or other 
cruel, inhuman or degrading treatment in line with the EU acquis. Georgia is a member of the Alliance for 
Torture-Free Trade but is not a member of the Kimberley Process, thus does not control trade in rough 
diamonds.  Georgia  is  not  a  member  of  multilateral  export  control  regimes  such  as  the  Wassenaar 
arrangement, the Nuclear Suppliers Group, and the Missile Technology Control Regime.  

In terms of administrative capacity, Georgia has continued to manage well its commitments in external 
commercial relations in implementing the Deep and Comprehensive Free Trade Agreement Area.  

As  regards  bilateral  agreements  with  third  countries,  Georgia  is  a  party  to  16  free  trade  agreements 
(FTAs), including with the European Free Trade Association (EFTA), , Türkiye, and the United Kingdom. 
Preferential agreements are in place with some countries with whom the EU does not have preferential 
agreements: Armenia, Azerbaijan, China the Russian Federation, Turkmenistan and Uzbekistan. Georgia 
signed a free trade agreement with the United Arab Emirates in October 2023 which is currently subject to 
ratification  by  both  sides.  The  FTA  covers  trade  in  goods  as  well  as  trade  in  services,  sanitary  and 
phytosanitary measures, protection of intellectual property, trade remedies, customs and trade facilitation 

85 

 
 
 
and others. The negotiations on an Economic Partnership Agreement between Georgia and the Republic of 
Korea were launched in February 2024.  

Georgia has 34 bilateral investment treaties in force with other countries, including with 16 Member States, 
the United Kingdom and Belarus. Georgia is in the process of negotiations with Canada and the Republic 
of Korea on the Foreign Investment Promotion and Protection Agreements. 

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.  A  legislative 
framework  on  humanitarian  aid  and  the  allocation  of  dedicated  funds  remain  to  be  set  up.  Dedicated 
administrative structures are not in place. Georgia has not developed 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 and restrictive measures. 

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 under the EU-Georgia Association 
Council in February 2024 and during the annual Strategic Security Dialogue in January 2024. 

Georgia’s alignment with CFSP (statements by the High Representative on behalf of the EU and Council 
decisions  on  sanctions)  in  2023  was  50%  (compared  to  44%  in  2022).  As  of  30  September,  Georgia’s 
alignment rate stood at 49%. Cases of non-alignment included statements and sanctions related to Russia’s 
war of aggression against Ukraine, as well as those targeting for example Hong Kong, Syria, terrorism or 
LGBTIQ rights.  

Despite the lack of full alignment, Georgia has cooperated in ensuring that the territory of Georgia and/or 
legal entities registered in Georgia were not used to circumvent these sanctions. However, the number of 
direct flights to various destinations in Russia have significantly increased during the reporting period. 

Georgia continued to align 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. The Georgian President participated in the Summit on Peace in Ukraine hosted by Switzerland. 
Georgia  concluded  a  Strategic  Partnership  with  China  in  July  2023.  Political  cooperation  is  part  of  the 
partnership.  

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 aspires to North Atlantic Treaty Organisation 
membership 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. As 
regards small arms and light weapons (SALW) control, Georgia committed itself to the UN Programme 
of Action on SALW, which contains a wide array of measures to combat the illicit proliferation of SALW. 

On security measures, the agreement on security procedures for the exchange and protection of classified 
information signed in 2016 is being revised. To this end, a security assessment visit was conducted by the 
EU on 6-7 March 2023. 

86 

 
 
As regards the common security and defence policy, Georgia ended its contribution to the EU Training 
Mission in the Central African Republic in June 2023 and has not offered contributions to any other EU 
crisis management missions and operations. Security and defence cooperation continued but was also 
affected by the political developments in the country. The adoption of the 2024 European Peace Facility 
assistance measure has been suspended as a result of the democratic backsliding observed in the country in 
2024.  

On hybrid threats, the cooperation with the EU in this area is currently limited, as well as dialogue and 
cooperation  on  countering  foreign  information  manipulation  and  interference  (FIMI).  There  is  little 
evidence of political will to take measures to limit the spread of manipulative narratives, including targeting 
the EU and EU integration. 

87 

 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND GEORGIA  

Georgia applied for EU membership on 3 March 2022. The European Council recognised the European 
perspective for Georgia in June 2022 and stated that it was ready to grant the status of candidate country 
to Georgia once the priorities specified in the Commission’s opinion on Georgia’s membership application 
have been addressed. Georgia was granted candidate status in December 2023, on the understanding that 
Georgia takes the relevant steps set out in the Commission recommendation of 8 November 2023. On 27 
June 2024 the European Council concluded that the Georgian government’s course of action jeopardised 
Georgia’s EU path, de facto leading to a halt of the accession process. 

The EU and Georgia signed an Association Agreement (AA) in June 2014, which entered into force in 
July 2016. The Deep and Comprehensive Free Trade Area (DCFTA) is an integral part of the Agreement.  
The  Agreeement  provides  the  foundations  for  political  association  and  economic  integration.  Overall, 
Georgia  has  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  February  2024,  the  Association  Committee  in  Trade 
Configuration  in  December  2023,  and  the  Association  Committee  in  July  2023.  Regular  subcommittee 
meetings were held throughout the reporting period. The Parliamentary Association Committee met in June 
2023.  

In addition to the AA/DCFTA structures, a Human Rights Dialogue with Georgia has been 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 2024.  

The  Georgian  government  does  not  exercise  effective  control  over  the  occupied  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 have enjoyed 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 has been in place since 2011.  

On bilateral financial assistance, the indicative bilateral allocation for Georgia for 2021-2024 amounts to 
EUR  340  million  under  the  Neighbourhood,  Development  and  International  Cooperation  instrument  – 
Global  Europe  2021-2027  (NDICI-GE).  Assistance  is  currently  being  reviewed  following  the  latest 
political developments. The bilateral annual programmes are complemented by a package of multi-country 
and  regional  programmes  (that  support,  among  other  things,  the  environmental  sector,  dealing  with 
migration,  education  and  culture),  as  well  as  TAIEX  and  competitiveness  programmes,  together  with 
support  from  international  financial  institutions  (IFIs)  and  international  organisations.  Georgia  also 
participates  actively  in  the  Interreg  NEXT  2021-2027  Black  Sea  programme.  To  improve  public 
procurement and the prevention of irregularities and fraud, Georgia is participating as an observer in two 
pilot projects under the Technical Support Instrument. 

88 

 
 
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), transport, SME development, 
digital connectivity, air quality and energy efficiency. Implementation of initiatives under the flagships is 
generally progressing well. So far, EUR 1.9 billion has been leveraged in key sectors of the EIP.  

The EU’s support through the European Peace Facility (EPF) in 2021-2023 totalled EUR 62.75 million 
(only for non-lethal equipment). The adoption of the 2024 European Peace Facility assistance measure has 
been suspended as a result of the deteriorating situation  observed in the country in 2024. 

The new activities are built on and add to the completed and ongoing programmes under the 2014-2020 
European  Neighbourhood  Instrument,  which  provide  significant  support  through  the  EU  Technical 
Cooperation  Facility,  budget  support,  the  Civil  Society  Facility  and  projects  aiming  to  improve  the 
country’s socio-economic development, as well as strengthen the reform of the Rule of Law sector, and 
improve 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, the Customs Programme Fiscalis and the transational 
cooperation Interreg programme Black Sea Bassin. Organisations and individuals from Georgia can also 
benefit from certain actions of the Erasmus+ and European Solidarity Corps Programme.  

89 

 
 
 
 
 
 
 
 
 
 
 
ANNEX 2 – STATISTICAL DATA 

STATISTICAL DATA (as of 5/09/2024) 
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 (%) 
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 (%) 

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 

Note 
1) 
1) 
1) 

1) 

1) 

1) 

1) 2) 
1) 2) 
1) 2) 
1) 2) 
1) 
1) 
1) 
1) 
1) 

Note 

3) 
4) 

2011 
4 469 i 
69 700 w 

2011 
26 099 w 
11 119 w 
2 960 w 
: 
: 
7.9 w 
1 biw 
7 w 

5 w 
: 
: 

11.0 w 
14.5 w 
5.4 w 
69.1 w 
94.6 w 
19.8 w 
33.9 w 
51.6 w 
7 w 

2018 
3 730 i 
69 700 w 

2018 
45 374 w 
15 169 w 
4 070 w 
: 
: 
6.1 w 
1 iw 
5 w 

-  1 w 
128.3 iw 
: 

8.7 w 
14.7 w 
9.4 w 
67.2 w 
82.5 w 
24.8 w 
49.7 w 
60.2 w 
6 w 

2019 
3 723 i 
69 700 w 

2019 
49 726 w 
15 760 w 
4 236 w 
: 
: 
5.4 w 
0 iw 
5 w 

5 w 
123.2 iw 
: 

8.4 w 
14.3 w 
8.5 w 
68.7 w 
82.0 w 
24.0 w 
54.3 w 
63.5 w 
7 w 

2020 
3 717 i 
69 700 w 

2020 
49 789 w 
14 017 w 
3 765 w 
: 
: 
-  6.3 w 
-  4 iw 
-  2 w 

0 w 
118.7 iw 
: 

9.5 w 
15.4 w 
8.7 w 
66.3 w 
94.5 w 
22.2 w 
36.9 w 
56.0 w 
7 w 

2021 
3 729 i 
69 700 w 

2021 
60 724 w 
15 921 w 
4 293 w 
: 
: 
10.6 w 
-  2 iw 
13 w 

-  3 w 
116.5 iw 
: 

8.3 w 
16.9 w 
7.3 w 
67.5 w 
95.6 w 
20.8 w 
42.7 w 
58.9 w 
6 w 

2022 
3 689 i 
69 700 w 

2022 
72 860 w 
23 662 w 
6 374 w 
: 
: 
11.0 w 
5 iw 
5 w 

2 w 
121.1 iw 
: 

7.6 w 
16.5 w 
8.0 w 
67.9 w 
85.7 w 
19.8 w 
52.5 w 
62.2 w 
6 w 

2011 
93.6 w 
57 546 w 
: 

2018 
116.0 w 
127 153 w 
18.5 w 

2019 
116.5 w 
128 623 w 
23.0 w 

2020 
109.7 w 
129 659 w 
17.5 w 

2021 
124.3 w 
139 741 w 
21.2 w 

2022 
144.6 w 
149 110 w 
29.5 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) 

Inflation rate 
Consumer price index (CPI), change relative to the previous year (%) 

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) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 

4) 

: 

19.2 w 

19.7 w 

17.4 w 

17.5 w 

17.9 w 

5) 

5) 
5) 

Note 

Note 

1) 

Note 
1) 
1) 
1) 
1) 

Note 
1) 

70.1 iw 

67.7 iw 

66.1 iw 

63.7 iw 

63.4 iw 

61.9 iw 

2 382 iw 
3 942 w 

4 553 iw 
6 929 w 

4 856 iw 
7 383 w 

4 205 iw 
6 268 w 

4 647 iw 
7 300 w 

7 199 iw 
11 741 w 

2011 
8.5 w 

2018 
2.6 w 

2019 
4.9 w 

2020 
5.2 w 

2021 
9.6 w 

2022 
11.8 w 

2011 
- 1 324.3 w 
- 2 518.5 w 
540.9 w 
-  303.0 w 
956.3 w 
518.8 w 
-  10.9 iw 
: 
707.9 w 
107.1 w 
59.4 w 
815.0 w 
313.7 w 
-  90.1 w 
4.1 iw 

2011 
-  0.8 w 
30.3 w 
26.3 w 
22.2 w 

2011 
83.4 iw 
240.5 w 
1 451.8 w 
3 562.5 w 
: 

2018 
- 1 004.9 w 
- 3 489.5 w 
1 905.4 w 
-  576.0 w 
1 155.2 w 
452.1 w 
-  9.1 iw 
: 
853.7 w 
286.5 w 
124.3 w 
1 140.2 w 
352.8 w 
-  129.6 w 
4.9 iw 

2018 
-  0.7 w 
39.7 w 
26.1 w 
21.2 w 

2018 
104.6 iw 
206.4 w 
2 621.5 w 
: 
: 

2019 
-  925.5 w 
- 3 390.4 w 
1 945.4 w 
-  709.1 w 
1 228.5 w 
404.7 w 
-  6.9 iw 
: 
958.3 w 
252.3 w 
90.3 w 
1 210.7 w 
387.2 w 
-  136.8 w 
5.3 iw 

2019 
-  2.7 w 
41.4 w 
26.0 w 
21.8 w 

2019 
107.9 iw 
197.4 w 
2 900.6 w 
: 
: 

2020 
- 1 731.3 w 
- 2 771.0 w 
120.4 w 
-  655.7 w 
1 575.0 w 
715.7 w 
-  8.4 iw 
: 
503.5 w 
30.1 w 
120.8 w 
533.6 w 
298.7 w 
-  157.3 w 
7.4 iw 

2020 
-  9.2 w 
59.5 w 
24.9 w 
26.9 w 

2020 
122.5 iw 
326.8 w 
2 825.9 w 
: 
: 

2021 
- 1 645.4 w 
- 3 211.4 w 
615.9 w 
- 1 001.9 w 
1 952.0 w 
816.7 w 
-  9.6 iw 
: 
792.7 w 
271.7 w 
110.1 w 
1 064.4 w 
298.9 w 
-  141.4 w 
8.6 iw 

2021 
-  6.2 pw 
49.0 pw 
24.9 pw 
25.3 pw 

2021 
123.9 iw 
284.3 w 
2 970.3 w 
: 
: 

2022 
- 1 027.4 w 
- 4 873.7 w 
2 593.5 w 
- 1 671.1 w 
2 924.0 w 
1 130.4 w 
-  9.2 iw 
: 
1 684.5 w 
312.4 w 
179.0 w 
1 996.9 w 
915.5 w 
-  113.2 w 
9.4 iw 

2022 
-  2.4 pw 
39.1 pw 
26.6 pw 
23.0 pw 

2022 
94.4 iw 
173.4 w 
4 346.1 w 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, 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) 

1) 
3) 

31 w 
9.39 w 
2.347 w 
91.9 w 
0.0 iw 

58 w 
8.12 w 
2.991 w 
107.7 w 
0.1 iw 

64 w 
7.05 w 
3.155 w 
102.1 w 
0.0 iw 

78 w 
8.45 w 
3.552 w 
97.8 w 
- 0.1 iw 

72 pw 
9.50 w 
3.814 w 
97.3 w 
- 0.1 iw 

62 pw 
10.89 w 
3.079 w 
123.7 w 
0.2 iw 

2 177.9 w 

2 867.3 w 

3 132.6 w 

3 184.9 w 

3 777.0 w 

4 591.6 w 

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) 

Note 

Note 

2011 
5 466 iw 
1 690 iw 
- 3 776 iw 
: 
18.8 iw 
27.8 iw 

2018 
7 927 iw 
2 862 iw 
- 5 065 iw 
: 
21.1 iw 
26.2 iw 

2019 
8 502 iw 
3 393 iw 
- 5 110 iw 
: 
21.2 iw 
24.2 iw 

2020 
7 047 iw 
2 925 iw 
- 4 122 iw 
: 
20.9 iw 
22.9 iw 

2021 
8 539 iw 
3 587 iw 
- 4 951 iw 
: 
16.9 iw 
22.9 iw 

2022 
12 866 iw 
5 302 iw 
- 7 563 iw 
: 
15.4 iw 
22.6 iw 

2011 
1.8 

12.1 
70.1 
78.6 

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 

: 
: 
: 

2022 
: 

7.6 
69.4 
78.1 

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 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 

People employed in the public sector as a share of total employment, persons aged 20–64 
(%) 

Note 

2011 
77.3 w 

2018 
75.2 w 

2019 
74.5 w 

2020 
63.2 bw 

2021 
64.5 w 

2022 
65.9 w 

62.8 w 

64.9 w 

65.1 w 

51.1 bw 

50.6 w 

54.0 w 

70.3 w 
56.1 w 
66.8 w 

48.5 w 
7.4 w 
: 
44.1 w 

72.2 w 
58.2 w 
67.2 w 

38.9 w 
8.3 w 
: 
52.8 w 

72.3 w 
58.3 w 
65.8 w 

38.2 w 
7.8 w 
: 
54.0 w 

58.7 bw 
43.9 bw 
47.0 bw 

19.8 bw 
11.4 bw 
6.9 bw 
61.9 bw 

58.1 w 
43.5 w 
47.3 w 

18.9 w 
11.3 w 
7.8 w 
62.1 w 

62.2 w 
46.4 w 
50.6 w 

17.9 w 
11.9 w 
8.5 w 
61.8 w 

18.6 w 

18.6 w 

18.3 w 

23.5 bw 

24.3 w 

23.4 w 

6) 
6) 
6) 

7) 
10) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) (%) 

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) 

Infrastructure 
Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Education, innovation and research 
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 (%) 

81.4 w 

81.4 w 

81.7 w 

76.5 bw 

75.7 w 

76.6 w 

17.3 w 
19.1 w 
15.3 w 
39.8 w 
7.1 w 

12.7 w 
13.9 w 
11.2 w 
29.9 w 
5.1 w 

11.6 w 
12.8 w 
10.1 w 
30.4 w 
4.3 w 

18.5 bw 
20.2 bw 
16.2 bw 
39.4 bw 
5.8 bw 

20.6 w 
22.7 w 
17.8 w 
42.9 w 
7.2 w 

17.3 w 
19.3 w 
14.6 w 
39.4 w 
6.6 w 

9.3 w 

10.5 w 

10.8 w 

25.0 bw 

32.1 w 

24.8 w 

20.9 w 

12.6 w 

11.3 w 

14.5 bw 

15.3 w 

13.0 w 

2011 
636 w 
: 

46 w 
7.5 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 

2022 
1 543 w 
112 w 

36 w 
5.8 w 
6.0 w 

2011 
138.9 iw 
1 048.6 w 

2018 
292.0 
1 392.9 w 

2019 
320.0 
1 314.1 w 

2020 
319.0 
1 273.7 w 

2021 
343.0 
1 343.6 w 

2022 
357.0 
1 388.5 w 

: 
: 

2011 
21.3 iw 

81 w 

2011 
2.6 iw 
0.30 iw 
0.16 w 

: 
: 

2018 
22.6 iw 

220 

2018 
3.5 iw 
: 
0.22 w 

: 
: 

2019 
22.6 iw 

234 

2019 
3.9 iw 
: 
0.23 w 

: 
: 

2020 
22.6 iw 

234 

2020 
3.8 iw 
: 
0.23 w 

: 
: 

2021 
22.2 iw 

263 

2021 
3.6 iw 
: 
0.20 pw 

: 
: 

2022 
: 

263 w 

2022 
3.3 iw 
: 
0.15 pw 

8) 
8) 
8) 

8) 

9) 

Note 

10) 

Note 

Note 

Note 
1) 
1) 
1) 

11) 

26.3 w 

75.8 w 

79.3 w 

83.8 w 

86.1 w 

88.4 w 

Environment 

Note 

2011 

2018 

2019 

2020 

2021 

2022 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*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) (%) 

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) 

12) 

Note 

Agriculture 
Agricultural production volume index of goods and services (at producer prices) (2015 = 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) 

Note 

13) 

14) 

Source: Eurostat and/or the statistical authorities in Georgia 

41.3 w 
: 

81.8 w 
9.4 ew 

2011 
1226 w 
: 
: 
: 
: 
: 
10 105 w 

2011 
: 
: 
1 087.6 w 
105.1 w 
630.4 iw 
582.1 w 
397.4 iw 
: 
228.6 w 

: 
344.0 w 

76.8 w 
21.0 ew 

2018 
1 251 
31 
56 
9 
3 752 i 
4 957 
12 149 

2018 
: 
: 
878.9 w 
163.2 w 
869.4 iw 
555.3 w 
363.7 iw 
: 
212.4 w 

: 
359.5 w 

68.1 w 
19.3 ew 

2019 
1 092 
36 
6 
8 
4 118 i 
5 205 
11 857 

2019 
: 
: 
869.5 w 
155.5 w 
891.6 iw 
561.8 w 
364.2 iw 
: 
241.0 w 

: 
424.2 w 

66.1 w 
19.6 ew 

2020 
1 043 
32 
40 
8 
3 984 i 
4 998 
11 160 

2020 
: 
: 
925.8 w 
165.7 w 
946.5 iw 
569.0 w 
405.1 iw 
: 
259.7 w 

: 
451.5 w 

67.1 
17.8 ew 

2021 
1 248 
36 
60 
14 
4 133 i 
5 385 
12 645 

2021 
: 
: 
928.6 w 
152.9 w 
956.8 iw 
587.9 w 
430.2 iw 
: 
226.9 w 

: 
348.8 w 

47.8 
14.8 ew 

2022 
1 272 
37 
59 
13 
4 561 i 
5 867 
14 247 

2022 
: 
: 
853.7 w 
150.2 w 
914.0 iw 
564.8 w 
370.5 iw 
: 
201.1 w 

: = not available 
  b = break in series 
  e = estimated value 
  n =  not significant value 
  p = provisional 

i = Eurostat estimate 

  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 

  Data shown for Georgia exclude the regions of Abkhazia and South Ossetia over which the government of Georgia does not exercise control. 

  Footnotes: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1)  Based on 2008 SNA. 
2)  Calculations are made according to NACE Rev. 2. 
3)  TIBR 1 Day. 
4) 

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. 

5)  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. 
6)  Since 2020 - NACE Rev.2, before 2020 - NACE Rev.1.1. 
7) 
8)  Persons aged 15 years and older. 
9)  Persons without education are excluded. 

Including construction. 

10)  Consumption based relative poverty. 
11)  Percentage of households having fixed internet connections at home (therefore excluding mobile phone network). 
12)  Does not follow the 'territorial principle'; including the performance of all resident carriers on the national territory and abroad. 
13)  Georgia does not produce rice. 
Including kitchen gardens. 
14)