Related items

• Prime Minister of Georgia meets Co-Rapporteurs for the Monitoring Committee of the Parliamentary Assembly of the Council of Europe

  The key directions of cooperation between Georgia and the Parliamentary Assembly of the Council of Europe (PACE) and the agenda of Georgia’s ongoing and implemented democratic reforms were the main topics discussed at today’s meeting between Georgian Prime Minister Irakli Garibashvili and Co-Rapporteurs for the Monitoring Committee of PACE.

  In the meeting held at the Government Administration, special emphasis was placed on the constructive work of the PACE Monitoring Committee’s Co-Rapporteurs for the monitoring of Georgia. The Head of Government thanked the Parliamentary Assembly’s delegation for productive cooperation.

  The conversation also touched on the security environment and challenges in the region and worldwide.

  The topics discussed included the situation in Georgia’s occupied territories. The role of support from the Council of Europe for peaceful conflict resolution was underlined. Irakli Garibashvili thanked PACE for firmly supporting Georgia’s sovereignty and territorial integrity.

  The meeting was attended by Co-Rapporteurs for the PACE Monitoring Committee Claude Kern and Edite Estrela, also by Head of the Council of Europe Office in Georgia Natalia Voutova, Georgia’s Foreign Minister Ilia Darchiashvili, and Head of the Government Administration Revaz Javelidze.
• HEARING OF MINISTER OF FINANCE WITHIN MINISTERIAL HOUR

  The Parliament heard the Minister of Finance, Lasha Khutsishvili, within the Ministerial Hour, reporting on the activities and future plans of the agency.
  According to the Minister, 10.1 percent was the real GDP growth in 2022, which was still double-digit. This information was provided by the National Statistical Agency. According to Lasha Khutsishvili, the economy's level reached its pre-pandemic trend in 2021–2022, and considerable growth persisted in 2023 (8.4% growth in January). He claims that in 2022, greater economic conditions compared to expectations allowed for the first time an increase in budget revenues.

  "The consolidated budget's tax revenue rate climbed by 1.8 billion GEL from its first plan to its final plan, which was 17 billion 350 million GEL. Tax revenue cash flow exceeded 17 billion 385 million GEL, exceeding the enhanced expected indicators by 100.2 percent. It should be noted that the rate of value-added tax refunds exceeded 2 billion 265 million GEL at the same time. The consolidated budget's overall revenue exceeded 23 billion 648 million GEL, or 100.8 percent, of the projected amount”, - the Minister of Finance noted.

  Regarding the expenditure component, the Minister reported strong performance and a volume of 23 billion 49 million GEL, or 99.7% of the anticipated amount. Cash flow above 15 billion 615 million GEL (99.2% of the estimate) and capital expenses exceeded 6 billion 169 billion GEL (101.2% of the projection), respectively, for the portion of current expenses.

  Lasha Khutsishvili called attention to the trend of declining budget deficits.

  Lasha Khutsishvili discussed the reforms that are currently taking place within the Ministry's system, including: the management of state finances, management of state investments, management of debt, reform of state enterprises, analysis of the efficacy of tax expenditures, and reforms in the tax and customs areas.

  According to the Finance Minister, the Ministry started actively working on the examination of tax expenditures, or tax advantages that are legally defined, in 2020.

• THE PARLIAMENT HEARD THE ACTIVITY REPORT FOR 2022 OF THE PARLIAMENTARY DELEGATION TO PACE

  At the plenary session, MPs heard the Activity Report for 2022 of the Parliamentary Delegation to PACE, introduced by the Head of the Delegation, Irakli Chikovani.

  “One of the acute issues for the PACE and for us was the devastation in Ukraine entailed by the Russian aggression and the decision made on the exclusion of Russia from the Coe and the preparation for a new Summit that is scheduled in May 2023 and that shall be dedicated to the planning of the further steps of the organization”, - he stated.

  According to him, the Georgian Delegation was one of the main Delegations that approved the exclusion of Russia at the emergency session convened by the CoE. As noted, sundry resolutions have been adopted in 2022 related to the situation in Ukraine, where the Georgian Delegation in full composition, including the Majority and the Opposition MPs, unanimously approved the documents except one resolution providing the record about the third President of Georgia.

  “This Resolution was connected neither to Georgia nor the situation in Georgia or the democratic reforms; it was an attempt, which by the way was quite successfully conducted by the EPP members and the rapporteur of the Resolution”, - he noted and added that the Resolution on Georgia initiated by the Monitoring Committee and adopted by the PACE reflects the immense progress achieved by Georgia in the democracy, rule of law and human rights protection directions.

  “This progress is clearly underlined and which is unambiguously confirmed by the CoE as a whole, though it also provides the challenges in Georgia being addressed by the Government”, - the reporter ended his speech.

• PARLIAMENT DELIBERATING DRAFT DEFENSE CODE OF GEORGIA

  The Parliament deliberated the draft Defense Code presented by the Government of Georgia as a legislative initiative, aimed at increasing the effectiveness of the management of the defense forces and preparing a unified codified legal act in the field of defense, thus reregulating the issues related to the organization and activity of the Defense Ministry and the military service.
  The speaker, Deputy Minister of Defense, Grigol Giorgadze, elaborated on the main reforms and new approaches of the system, which the mentioned document envisages.

  As the speaker clarified, the Code is focused on the new rules of military service tailored to the defense goals and improving the social guarantees of the persons employed in the system of the Ministry of Defense.

  The Draft re-titles the mandatory military service into the “national military service of conscripts” and reduces the term of service for the conscripts, namely – the 12-month service shall be replaced with the differentiated terms: 6 months for serving in the combat unit; 8 months – in the defense or security unit; and 11 months – for preliminarily determined majors. The conscription shall be ensured by providing the priorities of the Ministry. The conscripts may serve only in the system of the Ministry.

  The recruitment will be carried out taking into account the priorities of the Ministry.

  The draft of amendments, which was prepared on the basis of the model of the Finnish and Baltic countries, provides a one-time possibility of postponement of military service, and it also provides conditions for alternative military service.

  "The Code re-regulates the military reform adjusting it to the defense objectives and establishes significant social guarantees for the military personnel and creates the effective legal mechanisms for interoperability with NATO defense standards”, - the Deputy Minister of Defense, Grigol Giorgadze remarked.

  As an alternative to the draft Defense Code, MP Aleksandre Rakviashvili presented a legislative package.

  He claims that if the supplied document is used as a foundation, the system will undergo certain adjustments.

  As a result of the voting, the legislative package will ultimately be evaluated in light of the document provided by the Government's legislative proposal, which received support from 69 MPs.

• Georgian draft law on de-oligarchisation: Supporting the goal of limiting excessive influence of oligarchs, Venice Commission calls for systemic reforms

  Strasbourg, 14.03.2023 – In its interim opinion on the draft law of Georgia on de-oligarchisation published today, the Council of Europe’s body of constitutional experts, the Venice Commission, called on the Georgian authorities to adopt systemic reforms rather than targeting specific individuals, in order to achieve “de-oligarchisation”.

  “Oligarchisation” is the result of a combination of non-transparent exercise of political power without a political mandate, influence on parliaments, governments, political parties, judiciary and law enforcement bodies; ownership or influence on the media; decisive, if not monopolistic, influence on a number of areas, such as energy, mining, oil and gas, metallurgy, real estate. Eliminating such excessive influence of vested interests in economic, political and public life is a novel and very complex issue.

  The Venice Commission noted that while Ukraine was the first country to adopt specific de-oligarchisation legislation, the commitment to eliminate the excessive influence of vested interests in economic, political and public life was also the object of a specific European Commission recommendation to Georgia and the Republic of Moldova. Georgia has since prepared a draft law which is very closely modelled on Ukrainian Law. Each country, however, presents specificities.

  The Venice Commission supported the goal of eliminating or at least limiting the influence of oligarchs in political, economic and public life. It highlighted, however, that the choice of the means to achieve such a legitimate goal is of decisive importance if the system is to be effective while respecting democracy, the rule of law and fundamental rights. Any such measures should be commensurate to the goal pursued of achieving a level playing field for all actors in society.

  The Commission stressed that de-oligarchisation should be ensured through a systemic approach, which has a preventative effect and targets numerous fields, such as legislation relating to media, anti-monopoly, political parties, elections, taxation, anti-corruption and anti-money laundering, etc.

  The Georgian draft law instead focuses on a so-called “personal” (punitive) approach, seeking to identify so-called “oligarchs” through specific criteria, such as wealth and media ownership, to publicly label them as “oligarchs” and to subject them to series of blanket limitations that include exclusion from the financing of political parties or activities, exclusion from privatisations of public property, etc. This approach, in the opinion of the Venice Commission, carries high risks of human rights violations and arbitrary application, potentially harming political pluralism. At the very least, the Commission recommended transferring the power to designate a person as an “oligarch” to another body than the Government, removing the broad discretion of the Government in interpreting and applying these criteria and providing strong guarantees for human rights, due process and effective remedies.

  The Venice Commission has prepared the current opinion as an interim one, with a view of pursuing its analysis of possible solutions to this matter and taking into account further legislative developments when they are available.