Explanatory Memorandum to JOIN(2017)12 - EU position within the Association Council with Georgia with regard to the adoption of the EU-Georgia Association Agenda

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

Relations between the EU and Georgia are currently based on the Association Agreement and the European Neighbourhood Policy framework reviewed in 2015 1 . The key principles guiding bilateral relations in this context are more differentiation between partner countries and greater ownership by these countries.

The EU-Georgia Association Agreement (‘the Association Agreement’) was signed on 27 June 2014 and provisionally applied from 1 September 2014 until completion of the ratification process. The Association Agreement entered into force and became fully applicable on 1 July 2016.

With a view to preparing and facilitating the implementation of the Association Agreement, the Parties agreed on an Association Agenda at a meeting of the Cooperation Council on 26 June 2014. The Association Agenda provided a practical framework for drawing up a list of priorities for joint work in 2014-2016. These priorities were based on the structure of the Association Agreement, in the spirit of the overall objective of political association and economic integration.

Given that the Association Agreement has applied since 1 July 2016, the Association Agenda needs to be updated. This is a matter of political priority and has to reflect the current relations between the EU and Georgia.

This document therefore updates and refocuses the 2014-2016 Association Agenda, setting new priorities for joint work in 2017-2020. It distinguishes between short-term priorities (where significant progress should be achieved by the end of 2018) and medium-term priorities (where significant progress should be achieved by 2019-2020).

Consistency with existing policy provisions in the policy area

The Association Agenda is consistent with EU policy priorities in this area. These priorities are namely political and economic stabilisation of the neighbourhood and stabilisation of its security, the pursuit of EU interests and the promotion of universal values.

Consistency with other Union policies

The proposed Association Agenda, while reflecting the EU's long-standing engagement towards its Eastern partner, is fully aligned with the Global Strategy for the European Union's Foreign and Security Policy. The strategy calls for investing in the resilience of states and societies to the east while building closer relations. This integrated approach towards resilience addresses the most acute cases of governmental, economic, societal and climate/energy fragility.

Contents

1.

The document also takes into account:


• the need for stronger democracy and the rule of law;

• the promotion of human rights, fundamental freedoms and good governance;

• the increased focus on international cooperation to counter terrorism, conflict prevention, regional stability; and

• the potential of free trade in a fully functioning market economy with its policies gradually brought in line with EU policies to generate growth and employment.

2. LEGAL ASPECTS

This proposal is based on Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) for a Council Decision on the Union position within the Association Council set up by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, with regard to the adoption of the Association Agenda. The substantive legal basis for the adoption of the Association Agenda is Article 217 TFEU (association with third countries).

The adoption of the Association Agenda is envisaged by exchange of letters between the members of the EU-Georgia Association Council after the adoption by the Council of the European Union, on the basis of Article 218(9) TFEU, of an EU position within the Association Council itself. The adopted Association Agenda will be the basis for programming under the European Neighbourhood Instrument.

The Council Conclusions on the Review of the European Neighbourhood Policy of 14 December 2015 welcomed the proposals set out in the Joint Communication on the Review of the European Neighbourhood Policy 2 . These proposals aim ‘to further develop relations with partners wishing to pursue deeper relations with the EU based on shared values.’ The Joint Communication stresses the role of Association Agendas and partnership priorities as ‘the basis for setting priorities for assistance’.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

Not applicable.

Stakeholder consultations

These texts were drafted after close consultation with relevant Commission services and with Member States’ representatives in the Council of the European Union's Working Group on Eastern Europe and Central Asia. The texts also take account of discussions with the EU’s counterparts in Georgia.

2.

Consultation with civil society stakeholders took place in Tbilisi in October and November 2016. The main inputs received were all taken into account in the attached text and concerned:


• detailed indicators for priority actions;

• more involvement of civil society in the reform and decision-making processes;

• reform of the justice sector, the energy sector and public administration;

• the fight against corruption;

• the situation in the media sector; and

• implementation of the Deep and Comprehensive Free Trade Area.

These consultations were held following the orientations framed in the reviewed European Neighbourhood Policy.

Collection and use of expertise

The relevant thematic expertise was available internally, either in the European Commission headquarters in Brussels or in the EU Delegation to Georgia in Tbilisi.

Impact assessment

Not applicable.

Regulatory fitness and simplification

Not applicable.

Fundamental rights

No consequence for fundamental rights in the EU Member States.

3.

For fundamental rights in Georgia, the consequences are expected to be positive. This assessment is based on the fact that in the Association Agenda, Georgia has committed to the following:


• to implement the commitments and obligations under international and national human rights law and respect for fundamental freedoms;

• to strengthen the stability, independence and effectiveness of institutions guaranteeing democracy and the rule of law in Georgia;

• to integrate national minorities;

• to respect democratic elections and fully adhere to all recommendations by the Office for Democratic Institutions and Human Rights of the Organisation for Security and Co-operation in Europe (OSCE);

• to respect the independence, impartiality, professionalism and efficiency of the judiciary;

• to promote good governance through public administration reform, public finance management and greater access to information; and

• to uphold freedom of expression and independence of the media.

4.

On human rights, the EU and Georgia engage in regular dialogue to address a number of areas including:


• freedom of expression;

• freedom of the media;

• freedom of association;

• torture, ill-treatment and detention conditions;

• discrimination and gender-based violence;

• women’s rights and rights of the child;

• protection of persons belonging to national minorities; and

• freedom of religion.

4. BUDGETARY IMPLICATIONS

No additional budgetary implication beyond what is provided in previous international EU commitments. Any further budgetary implications will be defined in separate proposals, such as the forthcoming 2017-2020 European Neighbourhood Instrument Single Support Framework.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The implementation of the EU-Georgia Association Agenda will be subject to regular monitoring at least once a year. This monitoring will be carried out in the context of the review mechanisms and the meetings related to bilateral cooperation between the EU and Georgia under the Association Agreement.

6. REFERENCES

(a)Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, signed on 27 June 2014; OJ L261, 30.8.2014

(b)Joint Communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions; Review of the European Neighbourhood Policy; JOIN/2015/050 final

5.

(c)Council conclusions on the Review of the European Neighbourhood Policy of 14 December 2015


6.

(d)Regulation EU 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument; OJ L77/27, 15.3.2014


7.

(e)Accession of Georgia to the Energy Community Treaty, approved by the 14th Energy Community Ministerial Council in Sarajevo on 14 October 2016


8.

(f)Agreement associating Georgia to the Horizon 2020 programme signed in Brussels on 29 April 2016


(g)Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Georgia, of the other part, on a Framework Agreement between the European Union and Georgia, on the general principles for the participation of Georgia in Union programmes, signed on 12 December 2013; OJ L8, 11.01.2014

9.

(h)Agreement between the European Union and Georgia on protection of geographical indications of agricultural products and foodstuff, signed on 14 July 2011; OJ L 93, 30.03.2012


10.

(i)Common Aviation Area Agreement between the European Union and its Member States, of the one part, and Georgia, of the other part, signed on 02 December 2010; OJ L321, 20.11.2012


11.

(j)Agreement between the European Union and Georgia on the readmission of persons residing without authorisation signed on 22 November 2010; OJ L52, 25.02.2011


12.

(k)Agreement between the European Union and Georgia on the facilitation of the issuance of visas, signed on 17 June 2010; OJ L52, 25.02.2011


13.

(l)Joint Declaration on a Mobility Partnership between the European Union and Georgia, Brussels, 30 November 2009


14.

(m)Agreement between the European Union and Georgia on the status of the European Union Monitoring Mission in Georgia, signed on 03.11.2008; OJ L310, 21.11.2008


(n)Agreement between the European Union and the Government of Georgia on the status in Georgia of the European Union Special Representative (EUSR) for the South Caucasus and his/her support team, signed on 12 May 2006; OJ L135, 23.05.2006