2017/0242(COD)

Further macro-financial assistance to Georgia

Procedure completed

2017/0242(COD) Further macro-financial assistance to Georgia
RoleCommitteeRapporteurShadows
Opinion AFET MAMIKINS Andrejs (S&D)
Lead INTA TAKKULA Hannu (ALDE) KOULOGLOU Stelios (GUE/NGL)
Lead committee dossier: INTA/8/11184
Legal Basis TFEU TFEU 212
Subjects
Links

Activites

  • 2018/04/23 Final act published in Official Journal
  • 2018/04/18 Final act signed
  • 2018/04/18 End of procedure in Parliament
  • #3611
  • 2018/04/12 Council Meeting
  • 2018/04/12 Act adopted by Council after Parliament's 1st reading
  • 2018/03/14 Results of vote in Parliament
    • Results of vote in Parliament
    • T8-0073/2018 summary
  • 2018/02/22 Committee report tabled for plenary, 1st reading/single reading
    • A8-0028/2018 summary
    • AFET MAMIKINS Andrejs S&D
    • INTA INTA/8/11184 TAKKULA Hannu ALDE
  • 2018/02/20 Vote in committee, 1st reading/single reading
  • 2017/10/05 Committee referral announced in Parliament, 1st reading/single reading
  • 2017/09/29 Legislative proposal published
    • COM(2017)0559 summary
    • DG {u'url': u'http://ec.europa.eu/info/departments/economic-and-financial-affairs_en', u'title': u'Economic and Financial Affairs'}, MOSCOVICI Pierre

Documents

History

(these mark the time of scraping, not the official date of the change)

2018-09-12
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2017-11-23
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    MAMIKINS Andrejs
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    2017-10-11
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activities/2/type changed
Old
Vote scheduled in committee, 1st reading/single reading
New
Vote in committee, 1st reading/single reading
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EP
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  • url
    http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2018-0028&language=EN
    text
    • The Committee on International Trade adopted the report by Hannu TAKKULA (ALDE, FI) on the proposal for a decision of the European Parliament and of the Council providing further macro-financial assistance to Georgia.

      As a reminder, the Commission proposes to make macro-financial assistance available to Georgia for a maximum amount of EUR 45 million - of which EUR 35 million in the form of loans and EUR 10 million in the form of grants - to help the country to cover part of its external financing needs over the period 2017-2020.

      The proposal provides that the provision of macro-financial assistance by the Union should:

      • be subject to a pre-condition that the beneficiary country respects effective democratic mechanisms, including a multi-party parliamentary system and the rule of law and that it guarantees respect for human rights;
      • have as specific objectives increased efficiency, transparency and accountability of the public finance management systems in Georgia, and promote structural reforms aimed at supporting sustainable and inclusive growth, employment creation and fiscal consolidation.

      The committee recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission proposal so as to make it clear that the Union’s macro-financial assistance should also include measures to support the implementation of the Association Agreement, including the Deep and Comprehensive Free Trade Agreement. To ensure that specific objectives can be properly assessed, they need to be set out in a verifiable and measurable manner.

      If the precondition and the objectives are not met or if the aims and principles of the Association Agreement are generally disregarded, the Commission should temporarily suspend or cancel the disbursement of the Union’s macro-financial assistance.

    type
    Committee report tabled for plenary, 1st reading/single reading
    title
    A8-0028/2018
type
Committee report tabled for plenary, 1st reading/single reading
committees
date
2018-02-22
activities/4 added
date
2018-03-14
docs
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EP
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Results of vote in Parliament
activities/5 added
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2018-04-12
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CSL
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Council Meeting
council
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3611
activities/6 added
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2018-04-12
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EP/CSL
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Act adopted by Council after Parliament's 1st reading
activities/7 added
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2018-04-18
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CSL
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Final act signed
activities/8 added
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2018-04-18
body
EP
type
End of procedure in Parliament
activities/9 added
date
2018-04-23
text
  • PURPOSE: to provide macro-financial assistance to Georgia.

    LEGISLATIVE ACT: Decision 2018/598 of the European Parliament and of the Council providing further macro-financial assistance to Georgia.

    CONTENT:  the Decision provides for the Union’s macro-financial assistance to Georgia of a maximum amount of EUR 45 million, with a view to supporting Georgia's economic stabilisation and a substantive reform agenda.

    Of that maximum amount:

    • up to EUR 35 million shall be provided in the form of loans, and
    • up to EUR 10 million in the form of grants. 

    The assistance will be made available in two instalments, each of which shall consist of a loan and a grant element.

    Macro-financial assistance: the assistance shall contribute to covering Georgia's balance of payments needs as identified in the IMF programme.  In addition, the specific objectives of the Union's macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems in Georgia, and promote structural reforms aimed at supporting sustainable and inclusive growth, employment creation and fiscal consolidation.

    In order to finance the loan component, the Commission shall be empowered on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions and to on-lend them to Georgia. The loans shall have a maximum average maturity of 15 years.

    The Union's macro-financial assistance shall be made available for a period of two and a half years.

    Management: the release of the Union's assistance shall be managed by the Commission in a manner consistent with the agreements reached between the IMF and Georgia, and with the key principles and objectives of economic reforms set out in the Association Agreement, including the Deep and Comprehensive Free Trade Area (DCFTA).

    The Commission shall decide on the release of the instalments subject to the fulfilment of all of the following conditions:

    • the pre-condition that Georgia respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. The Commission and the European External Action Service shall monitor the fulfilment of that pre-condition throughout the life cycle of the Union's macro-financial assistance;
    • continuous satisfactory track record of implementing a policy programme that contains strong adjustment and structural reform measures supported by a non-precautionary IMF credit arrangement; and
    • the satisfactory implementation of the economic policy and financial conditions focusing on structural reforms and sound public finances set out in the Memorandum of Understanding, which will be agreed between the Commission and the Georgian authorities and will include a timeframe for the fulfilment of those conditions.

    Where the pre-condition is not met, the Commission shall temporarily suspend or cancel the disbursement of the Union's macro-financial assistance, and inform the European Parliament and the Council of its reasons.

    The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance, and shall provide those institutions with the relevant documents in due time.

    By 30 June of each year, the Commission must submit a report on the implementation of the Decision in the preceding year, which will:

    • examine the progress made in implementing the Union's macro-financial assistance;
    • assess the economic situation and prospects of Georgia, as well as progress made in implementing the policy measures in the Memorandum of Understanding;
    • indicate the connection between the economic policy conditions laid down in the Memorandum of Understanding, Georgia's on-going economic and fiscal performance and the Commission's decisions to release the instalments of the Union's macro-financial assistance.

    The Commission must also submit an ex post evaluation report, assessing the results and efficiency of the completed Union's macro-financial assistance and the extent to which it has contributed to the aims of the assistance.

    ENTRY INTO FORCE: 26.04.2018.

type
Final act published in Official Journal
docs
committees/0 added
body
EP
responsible
False
committee
AFET
date
2017-11-23
committee_full
Foreign Affairs
rapporteur
  • group
    S&D
    name
    MAMIKINS Andrejs
procedure/Modified legal basis added Rules of Procedure EP 150
procedure/final added
url
http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32018D0598
title
Decision 2018/598
procedure/stage_reached changed
Old
Awaiting committee decision
New
Procedure completed
2017-11-22
2017-11-14
2017-11-08
2017-10-27
2017-10-14
2017-10-10

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