PM Presented Annual Report in Parliament
Prime Minister Irakli Garibashvili presented the government’s annual report to the Georgian Parliament and responded to MPs’ questions on June 30.
Concurrently, a rally occurred in front of the parliament where, reportedly, police employed force to apprehend several activists.
The United National Movement (UNM) party held a briefing following the PM’s statement, announcing that following an assault on UNM Chair Levan Khabeishvili in Kaspi, they would not participate in the question-and-answer session.
During his extensive speech, Prime Minister Irakli Garibashvili labeled the United National Movement (UNM) as a “party of war” while emphasizing their purported acts of sabotage on numerous occasions. The major part of his discourse was dedicated to showcasing the accomplishments of the GD Government throughout 2022 and outlining forthcoming plans for the country’s economic, social, cultural, and overall development.
Economic Development
During his address, Prime Minister Irakli Garibashvili highlighted Georgia’s significant economic growth, considering the ongoing war in Ukraine affecting the region and internal threats posed by “destructive forces.” Notably, he highlighted 7.5% GDP growth in January-May 2023, with an overall GDP growth of 10% over the past two years.
The Prime Minister emphasized that Georgia’s total GDP grew, and the per capita GDP also increased significantly since 2020, projected to reach USD 8,200 this year. Prime Minister said Georgia has become less dependent on foreign aid, the current account deficit dropped to 4.1%, and government debt decreased from 60% during the pandemic to 38%.
The Prime Minister highlighted the fall in the unemployment rate, which equaled 17.3% in 2022, with 1,271,000 employed individuals. Furthermore, he said the poverty decreased to 15.6% from 30% in 2012.
In terms of fiscal management, the budget deficit was reduced from 9.3% in 2020 to 3.1% in 2022, with plans for further improvement, aiming for a deficit of 2.8% by year-end.
Addressing the challenge of high inflation, the Prime Minister noted a decrease to 1.5% in May 2023.
Direct foreign investments reached $2 billion, while revenue from tourism saw a remarkable increase of 107.6% since 2019, with 1.2 million visitors already hosted in the first quarter, indicating a recovery from the pre-pandemic period.
Foreign trade experienced growth, with exports rising by 31% and trade turnover by 33% in 2022, reaching $20 billion. The Prime Minister highlighted the notable increase in wine exports.
Looking ahead, the Prime Minister emphasized the government’s focus on innovation and start-ups, mentioning successful initiatives such as “Enterprise Georgia” and “Plant the Future.” Additionally, he said, the goal is to increase exports to the DCFTA countries in the European Union.
Regarding energy, the Prime Minister mentioned that seven new hydroelectric power plants began functioning last year, contributing to total electricity production of 13 billion kilowatt-hours. Future plans include constructing 15 additional hydro plants, two wind-powered plants, and ten solar-powered plants.
Social and Cultural Development
Regarding internally displaced persons (IDPs), the Prime Minister announced an increased budget of 233 million Georgian Lari (Gel) for their assistance and housing. The plan includes new apartments for 13,000 families and new homes in rural areas for 7,000 families.
The Prime Minister highlighted the increase in pensions from the previous year. Universal healthcare also received a larger budget, with 95% of citizens enrolled in the program. The funding for the universal healthcare program GEL 880 million, with additional services included in the coverage. Furthermore, the government plans to introduce reforms to pharmaceutical laws and address medication prices, which have already seen reductions due to the implementation of referential pricing laws.
New legislation is in the works to support positive demographic changes and strengthen the institution of the family in Georgia, announced the Prime Minister.
The PM addressed the new legislation to ban importing cars manufactured before 2013, aligning with “EURO 5” standards. He said the goal is to reduce vehicle emissions and protect the environment.
Garibashvili mentioned the newly constructed sports infrastructure, including the stadiums for the ongoing U21 football championship. Additionally, he highlighted the “Starring Georgia” campaign led by the Black Sea Arena, with a budget of GEL 70 million allocated for inviting star performers from abroad. The Prime Minister noted that the “youth can expect more surprises” in 2024.
Police, Army, and Justice
During his address, the Prime Minister expressed his gratitude to the police and stressed how the government cares for law enforcement officials. He specifically mentioned new apartments, free public transport, a salary increase of 30%-40% (with an additional 10% planned by the end of 2023), and other benefits. He emphasized that these measures were implemented to ensure that the police force has “the feeling of stability” and feels that it is “appreciated and strengthened.”
The Prime Minister stated that the army is currently being “rebuilt” and “strengthened.” He highlighted the infrastructure renovation to meet NATO standards and mentioned plans to acquire new equipment. In this context, Garibashvili slammed the opposition party “Girchi,” saying that it addles the mind of youth individuals in the camps and runs the “blasphemous church” to save youths from the military draft.
He promised that the new legislative measures enacted by the parliament would solve this problem and establish a strong reserve army for Georgia. He noted that the new conscripts would only go to the defense ministry duties so that the opposition could no longer say the recruits are used as guards.
The Prime Minister emphasized that, unlike the previous government, the current one has abandoned the practice of “torturing, belittling, raping, killing” prisoners. He highlighted that the number of prisoners fell to 9,000 from 25,000-27,000 inmates during the previous government’s tenure. In this context, PM Garibashvili called UNM a “neofascist” force, comparing their methods to those of fascists and Bolsheviks.
The PM said there are now humane conditions in prisons, with prisoners having the opportunity to participate in digital universities. The Prime Minister mentioned that Nika Gvaramia, TV manager recently pardoned by the President, who Garibashvili referred to as “one of UNM leaders” and said even he spoke about these improvements following his release from prison.
The Prime Minister also pointed out that the number of cases at the European Court of Human Rights has decreased, emphasizing that since 2012, no cases have been initiated from the penitentiary institutions.
- 18/04/2023 – Explainer | Why Has the Number of Strasbourg Cases Against Georgia Decreased Since 2012?
Future Projects
The Prime Minister discussed the government’s plan to construct a new airport in 2024 in Vaziani, near Tbilisi, designed to meet international standards and accommodate a significantly higher number of travelers. According to the head of government, the aim is to establish Georgia as an “aviation hub,” facilitating direct flights and serving as a transit point for a substantial volume of passengers and cargo.
Regarding the Anaklia Port, the Prime Minister mentioned that its construction will commence this year, with 51% funded by the government and the remaining portion financed by a private investor whose identity has not yet been disclosed. Additionally, the Prime Minister stated that plans are in place to strengthen and improve the Poti port through investments.
In reference to the “Middle Corridor” initiative with Kazakhstan and Azerbaijan, the Prime Minister acknowledged the need for infrastructure improvements in Georgia. For instance, express railways will be completed by 2024, connecting the country’s West to the East.
The Prime Minister also highlighted the “Undersea Sea Electricity Cable” project, stressing that it has received full support from the European Union. The study is anticipated to conclude in September, after which the government expects to commence the project’s main phase.
In terms of logistical enhancements, the Prime Minister outlined plans for increased and improved public transportation throughout Georgia. GEL 6 billion has been allocated for 2023 to construct and enhance roads, water systems, and other necessary municipal infrastructure for education, tourism, transportation, and more. The Prime Minister acknowledged that ensuring a 24-hour water supply remains a challenge in many municipalities, with plans to resolve this issue by 2025.
Regarding education, the Prime Minister mentioned that nearly 800 schools are scheduled for renovation to “meet the EU standards,” along with over 1,000 kindergartens. The accreditation process for higher educational institutions is expected to become more rigorous, while vocational programs are set to undergo improvements and modernization.
Foreign Policy
The Prime Minister emphasized that obtaining EU candidate status remained the government’s top priority in 2022 and that it continues to remain so. He expressed his view that a significant mistake was made by the European Union the previous year when Georgia was not granted the status while Moldova and Ukraine received it “as a bonus.”
PM Garibashvili reiterated that Georgia surpasses the other two countries in its approximation efforts. The EU’s failure to grant candidate status to Georgia this year would be a strategic mistake, he said and insisted that out of the 12 conditions set by the EU Commission for Georgia, 11 had been largely fulfilled. He argued that receiving “the EU perspective” was unimaginable under the previous government and represented a historic achievement of his administration.
The Prime Minister stated that the opposition, whom he called “irresponsible” and the “party of war,” visited EU officials and asked them not to grant candidate status to Georgia during the Georgian Dream government’s tenure. He claimed that this was the only action they took, offering no assistance in implementing reforms. As an example of sabotage, he mentioned the resolution initiated by the European People’s Party (EPP), the “mother party” of the UNM, which was introduced without prior consultations or engagement with GD. He suggested that the resolution aimed to hinder EU officials’ decision to grant Georgia candidate status, as enlargement is a sensitive topic for them. Nonetheless, he expressed optimism and believed that more European states were pro-Georgia than against it. He reiterated that depolarization was the only unfulfilled recommendation due to the opposition’s actions, and if the EU wants to witness depolarization in Georgia, it should grant candidate status.
- 02/06/2022 – Georgia’s Vice PM, Parliament Speaker Hit Out at EPP
The Prime Minister presented his now-usual argument regarding the Russian occupation that no country had sanctioned Russia after the 2008 war. He blamed the “party of war” for attempting to open a second front by advocating for sanctions against Russia. He stated that the Georgian Dream party had no intention of imposing sanctions as it wanted to protect Georgia’s economy and national interest to prevent war from breaking out – which, he reminded, the previous government failed to do. Furthermore, he accused the UNM of relinquishing Georgia’s territories to Russia after the Russian army withdrew in 2007, claiming to possess confidential information regarding the previous government’s wrongful acts. Simultaneously, he mentioned the significant efforts made to improve relations and the situation in the occupied territories. He highlighted reconciliation initiatives and numerous programs offered to residents of the occupied territories and those living near the dividing lines.
During his address, Garibashvili emphasized Georgia’s commitment to preventing Russia from evading international sanctions through its territory. He highlighted the recent visit of sanctions officials from the United States, European Union, and United Kingdom, who verified Georgia’s successful efforts in implementing this important task. The Prime Minister’s remarks underscored the country’s dedication to upholding international obligations and ensuring sanctions against Russia are effectively enforced.
Regarding partnerships with other countries, he acknowledged improved relations with neighboring countries and European states. He emphasized that two years ago, he conducted “exemplary mediation” between Azerbaijan and Armenia, leading to regional peace.
Mikheil Saakashvili
Garibashvili addressed the opposition in his speech, criticizing their previous “destructive” campaign to tarnish Georgia’s reputation. He questioned the opposition, asking, “Do you understand the extent of the damage you have inflicted on our country? Your chief’s [referring to Mikheil Saakashvili] campaign, acting as if he was dying, claiming we poisoned him, tortured him. Where are you now? Why don’t you say anything anymore? Was Saakashvili saved or, perhaps, he was resurrected?”
- 05/01/2023 – #SaveMisha – Rallies in Support of Imprisoned President Saakashvili Held in Georgia, Abroad
The Prime Minister claimed that Saakashvili and his family, whom he called “the traitors,” paid significant sums of money to various television channels to spread reports alleging that the Georgian Dream party had poisoned and tortured Saakashvili. He asserted that these false claims aimed to undermine Georgia’s chances of obtaining the EU candidacy. He demanded the opposition to issue a public apology, emphasizing that they should have done so following the recent decision by the Strasbourg Court, which, he argued, exposed their “campaign of lies.”
Answers to the MP’s Questions
The Prime Minister began the segment by noting that the opposition party UNM had left the Parliament, and he would thus not answer the questions they had asked. Throughout the session, Garibashvili reiterated previously stated facts, providing original answers to only a few inquiries. He addressed the case of Lazere Grigoriadis, emphasizing the determination to be ruthless against anyone who threatens the police.
Regarding direct flights with Russia, in response to a question from MP Irakli Shatakishvili, the Prime Minister stated that they have extensively discussed the issue and clarified that sanctioned planes and companies would not be permitted to fly. In response to a separate question about the Abkhazian railway, Garibashvili denied the existence of any behind-the-scenes negotiations and declared that there was no hidden agenda. He emphasized that the railway would only be opened once the country is reunited.
Prime Minister Garibashvili criticized the opposition’s role in fulfilling the EU’s 12 conditions, stating, “There are no facts – none – that they have done anything but harm, shown but hostility to the interests of their own country, through sabotage and constant boycott.”
During the hearing, Garibashvili disapproved of an insulting statement directed at Hungarian Prime Minister Viktor Orbán, emphasizing Orbán’s status as a “true friend of Georgia.”
Concluding the hearing, the Prime Minister voiced his strong opposition to what he called “LGBT propaganda” in kindergartens and schools, stating that it was unacceptable. Prime Minister also brought up the issue of foreigners utilizing surrogacy services in Georgia, emphasizing the determination to end this practice. He expressed concern that children born through surrogacy might be adopted by LGBT couples, which he believed to be contrary to Georgian Christian traditions.
This post is also available in: ქართული (Georgian) Русский (Russian)
