Office of the State Minister of Georgia on European and

Euro-Atlantic Integration

Georgia’s Progress Report on Implementation

of the ENP Action Plan and the EaP Roadmaps

2012

SUMMARY

2012 was marked by new dynamism in the EU-Georgia relations. In particular: negotiations on Association Agreement were advanced sufficiently and negotiations on the Deep and Comprehensive Free Trade Area, as an integral part of it, were launched and have progressed well; the Visa Dialogue was commenced; Georgia continued effective implementation of the European Neighborhood Policy Action Plan (ENP AP) and started implementation of the Eastern Partnership (EaP) bilateral and multilateral Roadmaps.

With the view of the change of the Government, the European and Euro-Atlantic integration remains the long-term strategic foreign policy goal of Georgia. The new Government of Georgia is committed to building a strong and effective democratic state, based on common European values and shared principles. It intends to fulfill and further develop current EU-Georgia agenda by making the best use of all possible cooperation instruments and mechanisms, with the aim to achieve tangible concrete already in 2013 for the EaP Vilnius Summit.

The new Government of Georgia is committed to ensure successful implementation of sustainable and deep reforms and intensify cooperation with the EU based on the “more for more” principle. It inherited some positive results of the reforms as well as serious challenges in the fields of rule of law, judiciary and governance. The new administration initiated concrete actions to promote democratic consolidation and political pluralism that will create effective checks and balances across its branches, facilitate greater civic participation and develop strong state institutions.

This is the first report that together with the chapters of the ENP Action Plan (notably ENP AP Implementation Plan for 2012) covers respective provisions of the EaP Bilateral and Multilateral Roadmaps. Information is provided in accordance with the ENP AP priority areas. Main progress in specific fields is summarized below.

Democracy and Human Rights and Governance-related Issues

The parliamentary elections held on the 1st of October, 2012 were truly a turning point, whereby for the first time in Georgia’s history, the peaceful and democratic transfer of legislative and most of executive powers took place. In particular the new political force, the ,,Georgian dream“ coalition gain a possibility to form new Government. In total, the ,,Georgian Dream“ coalition won 85 seats and United National Movement won 65 seats out of 150 seats in the parliament.

One of the aims of the new Government is to ensure real independence of media. After elections the lawful ownership of the TV Chanel Imedi has restored. The new GoG is committed to strengthen transparency in media financing system and de-monopolize the market of TV commercials. In December the Parliament initiated a draft law on amendment to the Law of Georgia on Broadcasting According. Obligations of the Georgian Public Broadcaster will be broadened - it will facilitate public awareness on Georgia’s foreign policy issues, among them integration in NATO and EU.

Parliament also initiated draft amendments to the Constitution limiting authority of the President by excluding right to unilaterally appoint new government and thus ensuring more democratic approach and proper balance between the branches of power. This draft also addresses the relocation of parliament back in Tbilisi.

Georgia continued in its efforts in strengthening the Judiciary System. In June 2012, in cooperation with the Judicial Independence and Legal Empowerment Project (JILEP), a software platform was created for judicial qualification examinations. Also, court case management software was introduced within the judiciary system. After hearing the case, court decisions are posted on the web page - www.info.court.ge within 24 hours and not only the party, but also all the interested individuals will be able to find the decision of their interest.

In the end of 2012, the new government launched institutional reforms of the criminal justice system and proposed draft laws on the Judiciary and Prosecution Service to the Parliament of Georgia. Legislative amendments aim at strengthening independence of judiciary. Rules regulating composition of the High Council of Justice, Administrative Committee of Judicial Conference and Disciplinary Chamber for disciplinary proceedings against judges will be changed in order to achieve wider decentralization and allocation of powers within the judiciary and to strengthen involvement of civil society representatives in the decision-making on organizational issues of judiciary. Amendments also aim at enhancement of the institutional independence of the Prosecutor’s office within the system of the Ministry of Justice. According to the amendments, the Minister of Justice will not have the power to prosecute or be involved in the individual criminal cases. Minister’s authority will only be extended to the general criminal policy.

Prevention of juvenile crime and rehabilitation of children in conflict with the law is one of the key priorities for the Government within the Juvenile Justice Reform. Ministry of Justice prepared draft legislative amendments to the Criminal Code of Georgia regarding the criminal liability of juvenile offenders, with the participation of UNICEF and national experts.

Significant progress had been made with regards to eliminating overcrowding in prisons, as well as improving inmate`s conditions. With the aim of improving healthcare services, the penitentiary healthcare budget has considerably been increased by 16% in 2012 compared to 2011. The new reform – professional education is being implemented in Georgian penitentiary system.

Legal Aid mobile service of the Ministry of Corrections and Legal Assistance of Georgia (MCLA) has been implemented in 2012 for local population in order to make free legal aid service accessible for everyone.

The new Government of Georgia is determined to increase the pace of the above reforms with special attention on combating organized crime and corruption at all level. Georgia’s Anti-Corruption Action Plan covers a period through 2010-2013. The main goals of the Action Plan are as follows: modernization of the civil service and development of the public service functioning; improvement of the public procurement procedures; public finance reforms; reinforcement of custom and tax systems; improvement of the competition policy; strengthening the judiciary system.

The civil service reform reached an active phase of development in 2012. As part of this reform process online recruitment portal was developed and launched, the Parliament of Georgia approved a new set of legislative amendments and various e-governance projects were implemented. In order to promote e-governance projects within the Georgian civil service, the minimum standards of electronic Human Resource Management and Document-flow systems were developed based on research and analysis of the best international and local practice and approved by the Government on February 20 and February 21, 2012.

The Ministry of Education and Science aims to update the policy on Integration of Ethnic Minorities through multilingual education. In the first quarter of 2013, the MoEs will have a policy document developed on development and implementation strategies and methodologies for multilingual education in general educational institutions of Georgia.

The Ministry of Education and Science and the National Curriculum Center implement various pilot projects aimed at learning the Georgian language and improving civic integration of ethnic minorities. Besides promoting Georgian as a second language, authorities implement policy aimed to strengthen knowledge of native language among minorities. Particular attention is paid to translation of textbooks in minority languages and improvement of teachers’ skills.

In order to promote access to higher education, special programmes have been elaborated aimed at promoting enrolment of minority students in institutions of higher education. Special education centres for adults - “Language Houses” were established in minority regions.

Ministry of Regional Development and Infrastructure prepared Guidelines on “Regional Development Strategy Elaboration”, which was approved by Georgian Government decree N 936 on May 14, 2012. The Development Strategies of Imereti and Mtskheta-mtianeti regions for 2012-2017 were approved by the decrees N 1689 and N 1687, dated 5 September, 2012 of Government of Georgia. The Projects on Rehabilitation of Water Supply System of Georgia were implemented 10 cities and started in seven cities.

Cooperation within the framework of the CORLEAP (The Conference of the Regional and Local Authorities for the Eastern Partnership) to strengthen the role of the Local Self Government is successfully underway.

Conflict Prevention and Confidence Building

The Government of Georgia highly appreciates the EU’s role in peaceful resolution of the Russia-Georgia conflict, among others, through participating in the Geneva International Discussions, supporting and implementing its non-recognition policy towards the occupied regions of Georgia. The EU’s engagement in the conflict resolution through the work of the European Union Monitoring Mission (EUMM) remains the essential guarantee of Georgia’s security. Therefore, it is of crucial importance to preserve and extend the Mission in future, as well as ensure its access to the occupied territories of Georgia (Mandate of the EUMM was extended until September 14, 2013 based on the EU Council decision of September 13, 2012). Following the parliamentary elections of 1 October, the new cabinet declared its priority t o gradually de-escalate the political tension with Russia.

The Government of Georgia is committed to confidence building and improving living conditions of people residing in the occupied regions of Georgia. In 2012 GoG continued to actively implement the State Strategy on the Occupied Territories: Engagement through Cooperation and the Corresponding Action Plan for Engagement.

Cooperation on Foreign and Security Policy

In 2012 Georgia continues alignment to the EU CFSP declarations. Government of Georgia is also willing to contribute to the EU-led crisis management operations under the CSDP and conclude for that purpose the relevant Framework Participation Agreement (FPA), as well as Agreement on Exchange of Classified Information with the EU. Georgia started the relevant internal procedures necessary to commence negotiations on FPA.

EaP and Regional Cooperation

Georgia has been effectively involved in both bilateral and multilateral formats of Eastern Partnership cooperation. In the framework of the Multilateral Cooperation, the Georgian governmental institutions are actively involved in preparations and work on all four platforms, flagship initiatives, panels and related events. The Government of Georgia was the venue for eight events and looks forward to further hosting events within the EaP, inter alia the 2nd informal Eastern Partnership dialogue in Tbilisi on 12-13 February 2013 and within the EaP Platform IV, the Ministry of Culture and Monument Protection will host the Cultural ministerial on 26-28 June 2013.

In the framework of the Eastern Partnership, the Government of Georgia actively cooperates and regularly meets the civil society organisations in order to enhance the dialogue with NGOs of the Georgian National Platform of the Civil Society Forum.

The 9th International Conference Georgia’s European Way - The EU and Its European Neighbours was held on July 10-12, 2012 in Batumi, and was dedicated to discussion of cooperation in the framework of the Eastern Partnership, namely the issues of security, conflict resolution and reintegration policy, the EU’s role in the Russia-Georgia conflict resolution, trade and investments, economic convergence, as well as issues of good governance, fight against corruption, freedom of expression, prospects for improvement of mobility of people and liberalization of visa regime with the EU.

Georgia continues support of regional initiatives envisaging diversification of infrastructure intended for the transportation of Caspian energy resources, including: EAOTCP project (Euro-Asian Oil Transportation Corridor), AGRI project (Azerbaijan-Georgia-Romania Interconnector), Trans-Anatolia gas pipeline project (TANAP), Nabucco West and/or Trans-Adriatic Pipeline (TAP). Georgia also continues active participation in the “Baku initiative” for EU-Black Sea/Caspian energy cooperation under the framework of the INOGATE programme.

New Government of Georgia continue support of implementation of the Baku-Tbilisi-Kars regional railway project which will encourage development of regional cooperation in the field of transport and trade between the Central Asia, Black Sea Region and Europe by attracting new cargo flows. Georgia has been also actively participating in the EU TRACECA Programme and with the aim to contribute to development of the TRACECA competitiveness and attractiveness of the corridor and facilitate further trade liberalization and reduction of barriers along the whole corridor.

Economic and Social Reforms

Growth of Georgian economy continues in 2012. In 9 month of 2012 GDP real growth constituted 7.5%. In 2012, average annual inflation amounted to -0.9% and end of period inflation to -1.4%. In 9 month of 2012 FDI to Georgia reached 684.2 mln. USD.

In order to improve social assistance system significant changes have been made in the methodology of evaluation of the socio-economic status of the socially unprotected families. Since September 2012 new pension and social insurance packages have been introduced to provide better living conditions.

On September 1, 2012, the Government of Georgia expanded the state insurance programme for 900 000 beneficiaries including 0-5 years old children, citizens of retirement age, students, disabled children and persons with distinct disabilities. The reform resulted in increasing a total number of citizens covered by a government-funded health insurance up to 1.7 million.

Since October 2012 election and change of political leadership in the country, Georgia, for the first time, has approved a socially-oriented state budget, including increase in the budget allocations for health care from $360 million GEL for 2012 to estimated $634 GEL for 2013.

At present the national report on “European Social Charter” is being finalised. The Government reports have been elaborated on the ratified conventions of the International Labour Organization (ILO).

During 2012, two meetings of Tripartite Commission of Social Partnership were held. After October election, Ministry of Justice in partnership with the ILO experts started preparation of ammendements to the Labour Code to meet international as well as local non-governmental organizations’ suggestions and recommendations and fulfil the obligations undertaken by Georgia through the various international treaties, such as Convention on Economic, Social, and Cultural rights, Conventions of International Labour Organization and European Social Charter. The amendent introducing the principle of tripartism was already adopted.

The Ministry of Labour, Health and Social Affairs continues working on creation of the Unified Healthcare Information System which shall provide both effective administration of the system and availability of patient-oriented healthcare system.

Within the framework of hospital sector development programme over 20 new/rehabilitated medical institutions have started functioning since 2012. For the purpose of training/retraining of medical staff, construction of the Medical Training Center is underway, which shall be equipped with relevant up-to-date, high-tech models.