European funds Related EU Grant Loans Programme(s):  Support for local development projects that aim at sustainable development and connection to EU policies and standards in neighbour countries of the EU  Loans from the financial mechanism that create a “partnership” bringing together grants from the European Commission and the EU Member States matched with loans from European public Finance Institutions and contributions from the partner countries.

Th European Commisssion has defined a humanitarian assistance and an assistance package for a 2008/2010 period. Following the recovery and evolution of the Georgian economy, the assistance may be reviewed.

The main source of the funding is a mix of programmed funds under the ENPI envelope and crisis instruments, such as the Instrument for Stability, ECHO - Humanitarian Aid and ECFIN grants for Macro-Financial Assistance (MFA). The package also includes the costs for the EU (ESDP) Civilian Monitoring Mission in Georgia covered by the CFSP budget.

Through this enhanced package, the Commission aims to provide assistance for:

* Resettlement of internally displaced persons (IDPs);
* Economic rehabilitation and recovery;
* Macro-financial stabilisation;
* Infrastructure support, especially in the energy sector.

However, this package does not change the main priorities and focus of EC assistance. On the contrary, the conflict has further increased the need for support in the priorities identified in the ENP AP.

What are the EU assistance priorities for Georgia?

The European Neighborhood Policy (ENP) Action Plan (AP) adopted in 2006 for a 5 year period and agreed between the EU and the Georgian government has been the backbone of EU-Georgia bilateral cooperation.

The National Indicative Programme for the period 2007-2010 for Georgia outlines four priority areas and the allocation of € 120.4 million in financial assistance.

* Support for democratic development, rule of law and: democracy and human rights; rule of law and judicial reform; good governance and public finance reform
* Support for economic development and ENP AP implementation: promoting external trade and improving the investment climate; regulatory reforms and Education
* Support for poverty reduction and social reforms: strengthening social reforms in health and social protection; rural and regional development
* Support for peaceful settlement of Georgia's internal conflicts

In 2007 and 2008, the most sizeable programmes have been those supporting reforms in public finance management and criminal justice sectors, technical support for the implementation of the ENP AP and economic restructuring efforts in breakaway regions as part of Confidence Building Measures. In addition under the Neighbourhood policy, Georgia has also benefited from a number of thematic, regional and other assistance programmes.