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.
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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. -
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.
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On Tuesday, the Georgian Parliament adopted the new law on “transparency of foreign influence” in a first reading. This is a very bad development for Georgia and its people.
The law in its current form risks having a chilling effect on civil society and media organisations, with negative consequences for the many Georgians benefiting from their work. This law is incompatible with EU values and standards. It goes against Georgia’s stated objective of joining the European Union, as supported by a large majority of Georgian citizens. Its final adoption may have serious repercussions on our relations.
The European Union urges Georgia to uphold its commitment to the promotion of democracy, the rule of law and human rights, and recalls the right of people to a peaceful protest.
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The proposed draft law on “transparency of foreign influence” raises serious concerns. Creating and maintaining an enabling environment for civil society organisations and ensuring media freedom is at the core of democracy. It is also key to the EU accession process and part of the 12 priorities, notably priority 7 on media freedom and priority 10 on the involvement of civil society.
The European Union is supporting Georgia in its reform efforts, responding to the country’s own aspirations for continued development and EU membership, as enshrined in Georgia’s Constitution.
The draft law’s adoption would be inconsistent with these aspirations and with EU norms and values.
We encourage the political leaders in Georgia to adopt and implement reforms that are in line with the stated objective of joining the European Union, as supported by a large majority of Georgia’s citizens.
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"These laws are aimed at blocking Georgians who are helping other Georgians. These are Georgians who are trying to address problems in their communities and provide services, whether it’s on climate change, or for business associations, or for young people, or people with disabilities, legal assistance to people who are in some cases in desperate need. These laws seem to be clearly in line with Russian law, which is aimed at stigmatizing civil society. It’s aimed at silencing dissenting voices. When you look at what’s going on in Russia right now, you see that Russian law has been very effective in silencing civil society and dissenting voices. Georgia has fought hard to build its democracy, to protect its freedoms. These laws will undermine that progress that Georgia has spent so many years building. That is why you hear concerns from the United Nations, from the European Union, from the United States, from many of Georgia’s long-standing friends, who’ve been working with Georgia for over 30 years, to help improve Georgia’s freedoms, protect Georgia’s freedoms, and build the institutions. So that is why people are very concerned. Georgia does not need this law". - Ambassador Degnan about the draft "foreign influence" laws.
US Embassy in Georgia
