The COVID-19 Pandemic Has Further Intensified the EU’s Relationship With Georgia - Diplomat Magazine

In this interview with European Union Ambassador Carl Hartzell, Diplomat was able to gather vital information about the European Union’s support and solidarity to curtail the impact of the COVID-19 pandemic in Georgia. From funding to advising, supporting, and promoting socio-economic development, the EU is strongly supporting Georgia to make remarkable forward steps in its economic recovery and societal potential drives.

The Ambassador lauded Georgia’s robust approach to securing the health of her citizens following the outbreak of the coronavirus disease, and is confident that the forthcoming parliamentary elections will not distract Georgia from the important course of ensuring safety for her people.

What cooperation has the European Union had with Georgia since the outbreak?

We are all experiencing difficult times because of COVID-19 - be it in the European Union or Georgia – but cooperation and solidarity bear special significance in our relationship. It is in the spirit of solidarity that EU Member States have extended a helping hand to one another as well as to their partners. Overall, the pandemic is causing global economic disruption at an unprecedented speed and scale. According to the latest forecast, the EU economy is expected to shrink by 7.4 percent in 2020, before re-entering into growth in 2021. But instead of turning inward in the face of our own domestic challenges, I am proud that we were fast to offer support to our partners, including – and not least – to the government and population here in Georgia.

For the EU it was key to demonstrate what support and solidarity look like in times of crisis, because “a friend in need is a friend indeed”. We have been acting as ‘Team Europe’, combining the resources of the EU, its Member States and their financial institutions, the European Investment Bank and the European Bank for Reconstruction and Development. Our support is directed towards macro-economic stability, business recovery, healthcare, and specific support to the regions and to vulnerable groups of the population.

Overall, I am very pleased with how we have managed to work side by side with the Georgian government, parliament, civil society and other actors throughout the crisis. I would say that our relationship has further intensified over these past weeks, despite the difficulties put to normal interactions because of the pandemic regulations. The meetings have continued, if usually over video link, and my staff and I have remained as busy as ever.

The EU availed funding worth 183 million (EUR) to Georgia in response to COVID-19. How will these funds be released and what areas of need will they be channeled towards?

The amount you mention in fact only represents the second assistance package, which was announced on 8 April, and followed from an immediate response package by ‘Team Europe’ provided as early as on 30 March of about €70 million. The first package was aimed at facilitating the provision of urgent healthcare supplies and technical expertise, special assistance to vulnerable groups and injecting more financial liquidity for the benefit of small and medium-sized enterprises.

The second package was targeted to support Georgia’s socio-economic measures, including a contribution to bridging the financing gap. It is noteworthy that these COVID-related support packages, of a total amount of €250 million, are provided as grants. We have already launched several calls for proposals as well as new projects. Last week, for example, we launched three new programmes supporting victims of domestic violence, internally displaced persons, and persons with disabilities.

But this is not all. Georgia will also receive financial assistance worth €150 million in the form of loans on highly favorable terms to support macroeconomic stability and protect Georgian citizens from the socio-economic consequences of the pandemic. Not only is the EU already the largest donor and partner of Georgia, but Georgia is one of the countries to have received the biggest COVID-related assistance per capita globally so far.

How do you think this crisis will affect economic relations between the EU and Georgia? What is the European Union doing to assist Georgia to avoid further isolation from the EU and global markets?

We currently start from the assumption that the general decline in Georgia’s economic development in 2020, as projected in real GDP change, is expected to be around 4 percent. One of the key areas of our assistance to Georgia has been to help rural areas and the vulnerable population in the regions to become more resilient in the face of the crisis. We have awarded a number of grants to support food production and food security during the COVID-19 crisis under the ENPARD programme. We have supported Georgian packaging companies to switch to the production of affordable face shields out of recycled plastic bottles, and helped apparel companies to switch to mask production. There are many such programmes. We are also advising and supporting Georgia in the re-opening of its economy. Georgia has a small open economy, so in the context of the expected downturn it is important to keep transport corridors open and continue active trade with the EU and other countries to ensure that all essential goods are available. We are helping our Georgian partners to achieve this. Still this year we plan to launch the “EU4Integrated Territorial Development” programme, which is backed up by €54 million. The objective of this programme is to promote integrated socio-economic development of the regions of Kakheti, Imereti, Guria, Racha-Lechkhumi and Kvemo Svaneti. Tourism is prominently addressed as one of the priorities of these efforts. The programme will support concrete economic development projects at the local and regional level, including through investments into local infrastructure.

Two specific objectives the EU hopes to achieve during this crisis is to further advance the green agenda and give a further push to digitalisation. I find both areas highly relevant also for Georgia and hope to see more possibilities opening up to advance our cooperation in these areas in the months and years to come.

Our hope and aim is for Georgia to not only come back to the status quo ex-ante as soon as possible, but to make a step forward in realising its economic and societal potential. In every crisis lies an opportunity.

What do you think will be the impact of the coronavirus on how people travel and socialize in Europe? And what will the new normal be in your opinion?

We all realise that travelling and socializing - not only in Europe, but also worldwide - will not be the same for a while. Georgia’s pandemic track record so far makes it well positioned to welcome tourists as a safe travel destination, but at the same time you want this opening to be done in a safe way. The same discussions are currently taking place in the EU and the Schengen area, with new guidelines being decided as the situation develops. I still hope that mutually safe opportunities for tourism will emerge soon, but it is going to be tough as the clock for the summer tourism season is ticking.

With regard to the “new normal” of travelling, my guess would be that on some accounts people will realise that travelling is not necessarily the only or even best way to do business, advance common projects or to exchange ideas, and that is probably a good lessons-learned. At the same time, I trust that people will still want to see and experience different places and, therefore, that the great potential that exists for a substantial boost to tourism here in Georgia will be there again once this health crisis is over. That is our assumption, as we continue to invest in the tourism industry all over the country.

How did coronavirus affect the schedule of contacts at various levels with the Georgian side? Are there activities that have already been canceled in connection with the pandemic?

Well, during the early days of the pandemic a number of meetings, events and trips had to be cancelled, but overall I think we have managed to keep up business continuity very well. This week the Foreign Ministers of the Eastern Partnership met over video link, and next week a video conference is planned among the Heads of State or Government of the EU and partner countries. So meetings are still possible, but clearly you are missing something when you cannot hold such events in person. I also regret that we had to cancel the traditional large-scale Europe Day event in Rike Park this year, as well as a few planned regional Europe Day events in the regions. With continued uncertainty about the pandemic situation, and with the elections coming up in October, I fear that I will get less opportunity to travel to the regions this year. But I still hope that one or two regional trips will still be possible. I have to speak to my staff about that!

What do you think will be the impact of COVID-19 on the upcoming parliamentary elections in Georgia, what is on the agenda of political consultations?

Georgia took a very robust approach to protecting the health of its citizens early on in this pandemic crisis. I see the same approach continuing with regard to the preparations for the October elections, which I find very wise. Parliament has announced the start of discussions on the safety rules for the campaigning and on Election Day. As I know, political parties, as well as civil society, will be part of these consultations with a view to ensuring that the right balance is found between safety measures and election rights. It is very important to have an open discussion about these issues, and I hope that the final rules of the game will be embraced by all sides of the political spectrum and by the society.