Friday

29th Mar 2024

Donors pledge billions to rebuild Georgia

The international community has pledged $4.5 billion (€3.4 billion) toward the rebuilding of Georgia hit by the short war with Russia over South Ossetia in August, with the European Commission alone putting aside up to €500 million to address Tbillisi's needs between 2008-2010.

"It is a moral imperative to help a neighbour in need," commission president Jose Manuel Barroso said when opening a donor's conference in Brussels (22 October).

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • Some 38 countries and 15 international organisations took part in the donor's conference (Photo: European Commission)

He added that it was also in the interest of the EU to help Georgia to get back on its feet - for wider stability as well as energy security reasons.

Prior to the outbreak of the conflict, the Georgian economy was booming, with growth expected to reach 10 percent this year. But with a large chunk of infrastructure damaged and the flow of foreign investement decreased, current forecasts put the figure at around five percent.

According to EU external relations commissioner Benita Ferrero-Waldner, the commission package of up to €500 million will be channelled to three main purposes - to strengthen the Georgian economy, build strategic infrastructure, including energy infrastructure, and provide food and shelter to those in need.

However, Ms Ferrero-Waldner stressed that the recent war should not distract Georgia from economic and political reforms, which are "essential" and which "should further advance."

In response to their pledges, Georgian prime minister Lado Gurgenidze expressed a "big thank you" to all donors, saying that the final cheque exceeded Georgia's expectations.

"We are deeply moved and humbled by the solidarity" especially in the time of the financial crisis, he said.

Some 38 countries and 15 international organisations took part in the donor's conference.

Concerns over use of funds

But shortly before the conference opened, representatives of civil society and the opposition in Georgia issued an open letter, urging all donors to ensure the funding is used to improve living conditions, not to strengthen the current regime.

"Financial support should be delivered through the most direct channels and with the utmost transparency and within a strict monitoring mechanism, which avoids unconditional funding," reads the letter.

It continues by saying that "any additional funds available should go to supporting concrete democratisation programmes." The media, the judiciary and the electoral processes are cited as areas with the biggest shortcomings.

The signatories were not part of the Georgian official delegation nor present at the conference.

When asked about the letter, deputy prime minister Lado Gurgenidze said he had not read it and limited himself to the pledge that every euro would be spent to "the best possible use."

"Today is just the beginning. There are three years of hard and productive work ahead of us," the politician concluded.

US and EU breaking taboos to restrain Israel

The US abstained and all EU states on the UN Security Council backed a call for an "immediate ceasefire" in Gaza, as Europe prepares to also blacklist extremist Israeli settlers.

EU warns Russia over Moscow terror attacks

Europe has warned Russia not to use the weekend's terror attacks in Moscow as a pretext to escalate its war in Ukraine and crackdown on internal dissent.

EU summit risks failing Gaza once again, Ireland warns

Austrians and Czechs might block an EU statement calling for an Israeli ceasefire, Ireland warned, as leaders met in Brussels amid starvation in Gaza. Israel's conduct of the war meant it had "squandered the support they had", Leo Varadkar said.

Opinion

Why UK-EU defence and security deal may be difficult

Rather than assuming a pro-European Labour government in London will automatically open doors in Brussels, the Labour party needs to consider what it may be able to offer to incentivise EU leaders to factor the UK into their defence thinking.

Latest News

  1. Kenyan traders react angrily to proposed EU clothes ban
  2. Lawyer suing Frontex takes aim at 'antagonistic' judges
  3. Orban's Fidesz faces low-polling jitters ahead of EU election
  4. German bank freezes account of Jewish peace group
  5. EU Modernisation Fund: an open door for fossil gas in Romania
  6. 'Swiftly dial back' interest rates, ECB told
  7. Moscow's terror attack, security and Gaza
  8. Why UK-EU defence and security deal may be difficult

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

EU news that matters

Join us