MEP Cramon on Georgia’s ‘refusal’ on EU loan: ‘you can’t decline what you weren’t eligible for’

MEP Viola von Cramon says that it is not the Georgian government which refused to take the second part (75 million EUR) of the EU’s 150 million EUR loan. 

Cramon has tweeted that the Georgian government has failed to fulfil the requirements to receive the loan, pointing at the lack of judicial reforms. 

“You can not decline what you were not eligible for. We stand with the people of Georgia,” she said. 

Georgian PM Irakli Garibashvili stated yesterday that the country no longer needs to take the 75 million EUR loan from the EU because of ‘the economic growth’ and the intention to gradually decrease the 20 billion USD foreign debt. 

The EU representation to Georgia responded later the same day that the EU ‘respects’ the decision of the Georgian government, noting that the country may not have received the loan at all because of several unfulfilled criteria. 

Georgian NGOs say that the government’s refusal to take the loan pointed at deviation from the country’s Euro-Atlantic course and that the government had no intention to fulfill the April 19 EU-mediated agreement. 

The United National Movement and the European Georgia opposition claimed that the government ‘knew that the EU would have suspended the financial aid  (because of the ruling party’s recent  backing out of the EU-mediated agreement) and was forced to make the statement on the refusal of the loan before the EU imposed the sanction.’ 

The ruling Georgian Dream party and majority of opposition parties signed the EU-mediated agreement proposed by Michel back in April 2021 to resolve a six-month, post-election political crisis in Georgia.  

 

The agreement obliged signatories to ensure the conduct of large-scale reforms, including in the electoral and judiciary fields.  

 

In July 2021 the ruling party left the agreement and accused the opposition parties of either not-joining the agreement or the violation of the agreement stipulations.  

 

However, the government promised the fulfilment of all the reforms outlined in the agreement. 

Earlier this month European President Charles Michel warned the Georgian government of possible refusal on the loan if the government failed to fulfil the reforms outlined in the EU-mediated agreement.