European Union Allocates EUR 20 Million Aid for Georgia

| News, Society, Georgia

On February 9, the European Union allocated a non-reimbursable aid grant of EUR 20.87 million for Georgia to help with ongoing reforms in several fields, including regional development, agriculture, rural development, and food safety. These fields include economic and business development, skill development, and labor market reform. The majority of budget support for Georgia is combined with complementary support that would further encourage reforms, such as grants and technical assistance for rural residents under the European Neighborhood Programme for Agriculture and Rural Development (ENPARD) or small regional businesses under the EU's Regional Development Programme. These support mechanisms are all part of broader budget support for specific sectors.

The Delegation of the European Union to Georgia assessed the implementation of the reforms in each sector:

European Neighborhood Programme for Rural Development and Agriculture: To further enhance the quality of life for individuals and groups residing in rural regions, significant progress has been accomplished. Significant advancements were made in community center work, forest restoration, and the use of certified seeds in agricultural output. A partial payout was made since one indication for the certification of nurseries was only partially satisfied.

Integrated Territorial Development: The initiative has produced excellent results, including the distribution of a sizeable amount of funding for towns to support the growth of local businesses and local infrastructure in four focus zones (Kakheti, Imereti, Guria, Racha-Lechkhumi and Kvemo Svaneti).

Economic and Business Development: In general, Georgia's government has made considerable strides in implementing its small and medium-sized firm (SME) policy. However, due to delays in the approval of important laws in prior years, several indicators could not be satisfied.

Skills Development and Matching for Labor Market Needs: The labor market has undergone very good reform; this is demonstrated, for instance, by the 114% rise in the number of work placements made possible by the Social Service Agency. Additionally, there has been a good improvement in state financing and student enrollment growth. However, a tiny portion of the disbursement could not be transferred due to a delay in the creation of the system for tracking the availability of job openings at the local level.

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