1. EC cooperation with Georgia
ENP AP

2. Introduction
The enlargement of the European Union on 1 May 2004 has brought a historical shift for the Union in political, geographic and economic terms, further reinforcing the political and economic interdependence between the EU and neighbouring countries.
It offers the opportunity for the EU and neighbouring countries to develop an increasingly close relationship, going beyond co-operation, to involve a significant measure of economic integration and a deepening of political co-operation.

3. Introduction
The approach is founded on partnership, joint ownership and differentiation.
The ENP sets ambitious objectives based on commitments to shared values and effective implementation of political, economic and institutional reforms.

4. Action Plan
Political document laying out the strategic objectives of the cooperation between each neighbourhood countries and the EU
Covers a time frame of five years

5. Implementation of Action Plan
Will help fulfil the provisions in the Partnership and Cooperation Agreement (PCA)
Build ties in new areas
Will encourage and support neighbourhood countries’ objective of further integration into European economic and social structures.

6. Implementation of Action Plan
Will significantly advance the approximation of neighbourhood countries’ legislation, norms and standards to those of the European Union
Will build solid foundations for further economic integration based on the adoption and implementation of economic and trade-related rules and regulations with the potential to enhance trade, investment and growth

7. New partnership perspectives opened by ENP
The perspective of moving beyond
cooperation to a significant degree of
integration, including through a stake in
the EU’s Internal Market, and the
possibility for neighbourhood countries to
participate progressively in key aspects of
EU policies and programmes;

8. New partnership perspectives opened by ENP
Deepening trade and economic relations;
Providing the opportunity for convergence
of economic legislation, the opening of
economies to each other and the
continued reduction of non-tariff barriers
to trade, which will stimulate investment,
exports and growth;

9. New partnership perspectives opened by ENP
Increased financial support: EU financial assistance for ENP countries and new European Neighbourhood and Partnership Instrument (ENPI)
Support including technical assistance and twinning to meet EU norms and standards, and targeted advice and support for legislative approximation through a mechanism such as TAIEX;

10. Priority areas Rule of law Improvement of business climate
Economic development and poverty reduction
Cooperation on JLS and border management
Regional cooperation
Resolution of internal conflicts
Cooperation on foreign and security policy
Transport and Energy

11. Monitoring and follow up
Yearly cooperation committe
Yearly sub committees (Trade and Economics, JLS)
Yearly progress reports
Consultation with major stakeholders
GoG implementation plan

12. 1st progress reports on 2007
Good progesss on judiciary reforms, improving state revenues and fight against corruption (but independence and impartiality of judiciary remains an issue)
Progress in improving business climate, reforming revenue service and VET
Proper implementation of laws in the area of governance and human rights is needed

13. Progress and problems Food safety Labour code
Secondary legislation for customs code
Competition and company law
Prison conditions
Property rights
Civil service law
Statistics

14. EC cooperation with Georgia
ENPI - Context, challenges and timeframe

15. ENPI - Main facts Scope Country specific programmes
Cross border cooperation with EU Member States
Region 17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Middle East
Funding Average €1.6 billion per year
Ref Reg: 1638/2006 of
Replaces Mainly Tacis and Meda Regulations

16. The programming process
EC Delegation ENPI Presentation March 2007
The programming process
Strategy Papers
Multi-annual Indicative Programmes
Annual Action Programme
►normally attached
to Strategy Papers
► set global and per priority allocations
► cover 3 – 4
years
► Analysis of the situation
► Response strategy
►Priority sectors
► 7 years
► revised at mid-term
►annual
► describe projects
identified for
financing
► define the
budget per
project
►lead to EC
decision &
commitments
of funds
There is one specific strategy paper for CBC.
Comitology  management procedure
No changes compared with the present situation 16
Federico Berna

17. CSP and NIP define four priority areas four Geogia
Support for democratic development, rule of law and governance
Support for economic development and ENP AP implementation
Support for poverty reduction and social reforms
Support for peaceful settlement of Georgia’s internal conflicts

18. Allocation for Georgia
NIP million €uro
2007 : 24 M€
2008: 28,8 M€
2009 : ,4 M€
2010: ,2 M€ 18

19. Budget allocation for the NIP 2007-2010
Priority area
Mio € %
Support for democratic development, rule of law and governance
31.5 26
Support for economic development and ENP AP implementation
Support for poverty reduction and social reforms
38.4 32
Support for peaceful settlement of Georgia’s internal conflicts 19 16
Total
120.4
100

20. AAP 2007 Georgia Programme Budget Implementation
Support to PFM reforms
16 Mio €
Sector Support
Twinning Facility
4 Mio €
Twinning/TA
Rehabilitation in Conflict Zones
4 Mio €
Grant contracts
TOTAL
24 Mio € 20

21. AAP 2008 Georgia Programme Budget Implementation
Support to criminal justice reforms
16 Mio €
Sector Support
Twinning Facility
6.8 Mio €
Twinning/TA
Rehabilitation in Conflict Zones
6 Mio €
Grant contracts
TOTAL
28.8 Mio € 21

22. Other funds and instruments
Regional programmes (especially transport, energy, environment)
Interregional programms (Erasmus, Tempus, Taiex, Sigma, etc.)
Cross Border Cooperation
Specific instruments (EIDHR, IfS)
Thematic budget lines (NSA, Migration, etc.)
Specific funds (governance facility, investment facility)

23. Ongoing Tacis projects
Still TACIS projects from 2004 to 2006
Ca. 200 contracts in many areas
Rule of law and governance
Customs, taxes
Border management and fight against drugs
Health
Statistics
Etc.

24. New cooperation modalities
Isolated TA projects almost abolished
Sector support programmes (including budget support)
Twinning

25. For Georgia the structure for AP is quite straight forward
1 sector programme (to be chosen each year in function of the PIN and sector readiness)
1 twinning programme (kind of facility that can respond to the whole area covered by NIP)
1 conflict intervention (rather project oriented)

26. Sector choice within NIP so far
2007 “Public finance management”
2008 “Criminal justice reform”
2009 still in discussion. Probably “Vocational training and educational”

27. Programming challenges for AP 2008
“Twinning” still experiences little request
“Conflict” very sensitive issues with little input from government so far. Difficulty to agree on activities as well with Georgian government as with the break away regions
“Rule of law” still not very structured sector

28. Timeframe AP2008
11/07 DEC sent first draft proposal on budget allocation to government
12/07 Official response and Elaboration of Project Identification Fiches (PIF)
12/07 PIF go through first Quality support group meeting (QSG1)
02/08 Finalisation of Action Fiches and QSG2
03/08 Launching of Inter service consultation
05/08 ENPI Committee meeting
06/08 End of European Parliament’s right of scrutiny
07/08 Commission Decision
08/08 Financing Agreements
10/08 Beginning of implementation period