Following the publication of the EU Business Climate Report 2024 on Georgia, put together by the European Business Association (EBA), which highlighted instability as the primary challenge facing European businesses operating in the country, EU Ambassador to Georgia Pawel Herczynski voiced his opinions regarding the country;s current political trajectory in economy and business.
“This negative political trajectory also has consequences on the economic situation as well as on the businesses trying to operate in Georgia,” said Herczynski.
He emphasized that the government’s regression in implementing necessary reforms is a primary obstacle to business development.
“The role of the private sector in driving economic growth and fostering innovation is huge, and through the EU4Business initiative, we have been empowering businesses to thrive, innovate, and contribute to Georgia’s economic development,” he stated.
Despite Georgia receiving EU candidate status in December 2023, Herczynski expressed deep concerns about the government’s actions since 2024.
“The trajectory taken by the Georgian authorities since spring 2024 is incompatible with the standards expected from a candidate country. The decision to join the EU is a choice, but the enlargement process is merit-based and depends on reforms. Those reforms have not happened, and EU-Georgia relations have deteriorated. We strongly regret this situation,” he said.
As a result of regressing on fundamental EU-Georgia agreements, the EU has scaled back financial assistance and is reviewing ongoing programs, with some projects facing discontinuation.
“Many companies decided to enter the Georgian market, anticipating that the country would move ever closer to the EU. Now, many of those companies have legitimate questions and doubts about Georgia’s future, as the enlargement reform agenda is crucial for structural, inclusive, and sustainable transformation,” Herczynski noted.
He acknowledged the EBA’s efforts in properly representing both European businesses and Georgia and vice versa, pointing out their role as crucial in supporting European integration.
“Businesses drive change. I sincerely hope for better days in EU-Georgia relations, and I am convinced that the business sector will play a key role in driving Georgia’s EU aspirations forward,” Herczynski expressed hope in his concluding comments.
