The PMC Research Center (PMC RC) team recently contributed to the Trans European Policy Studies Association’s (TEPSA) publication entitled “European Council Experts' Debrief,” (EUCO Debrief) which focuses on a number of important topics discussed at the European Council, such as security & defense, energy, economic issues, and the European Neighbourhood Policy (ENP).
The EUCO Debrief is a series of policy responses to the regularly-published conclusions of the European Council. Each time the European Council meets for a summit, TEPSA gathers its leading academics to comment on the conclusions, analyze the alliances formed, maintained, and broken, investigate the policy implications of the consensuses reached, and prescribe solutions to move Europe forward.
In this issue, PMC RC, specifically its researchers Elene Panchulidze and Irakli Sirbiladze, focused on the topic of the EU membership applications of Ukraine, Moldova, and Georgia, while Giorgi Tsulaia (Junior Researcher) and Anastasia Chkhenkeli (Research Assistant) discussed the EU’s sanctions imposed on Russia, as well as pondering which other sanctions the EU could apply in the future.
While the European Council has requested that the Commission examine the membership application of Ukraine, Moldova, and Georgia, Panchulidze and Sirbiladze discussed if the EU’s eastern enlargement is a genuine possibility and what the potential geopolitical consequences could be thereof. They also focused on how this could affect its relations with long-standing candidate members, such as those in the Balkans.
“Looking to the future, one possible scenario for the EU is to adopt the Western Balkans toolkit vis-à-vis the three associated states and grant them ‘potential candidate’ status. This would mean the acknowledgement of a clear European perspective, but also sending a signal to the associated partners that candidate status and eventual membership are only possible when EU values are actually shared by those countries. To progress to the next stage, the EU fundamentals of the rule of law, functioning democratic institutions, public administration, and economic reforms must be upheld with the association process still the common framework for relations. While there is no fast-track procedure defined in the treaties, the EU can nevertheless show some flexibility and consider the model of staged accession in response to the ongoing geopolitical developments and the growing number of states in the membership “waiting room”,” noted the authors in their contribution.
As the EU remains ready to close loopholes and target actual and possible circumvention, as well as to move quickly with further sanctions, Tsulaia and Chkhenkeli focused their discussion regarding the EU’s sanctions imposed against Russia on the overview of existing loopholes therein and propose further forms of sanctions.
“While imposing full-scale energy sanctions and fully banning energy imports from Russia to the EU is debatable due to the EU’s high dependency on Russian oil and gas, there is a possibility to strengthen the already-imposed sanctions by lifting energy-related exemptions."
“The decision of whether to expand or not, and in which directions to do so, depends on the exact objective of those sanctions. Since the first sanctions were triggered, they have considerably damaged Russia’s economy and its international reputation. The continuing effectiveness of the sanctions thus depends on the strategy behind them. The imposition of sanctions should thus take into consideration whether this strategy is designed to exhaust the Russian economy so much that it would no longer be able to support the war effort, and whether they will shift public opinion in Russia against its government, or just punish Russia and its citizens without any room for reversibility,” observed Tsulaia and Chkhenkeli.
To read the full paper, please follow the link: “European Council Experts' Debrief”
On September 9, we presented the findings of the research entitled “Investment and Export Promotion via Diagonal Cumulation between Georgia, Türkiye, and the European Union” at a forum organized by the Ministry of Economy and Sustainable Development of Georgia with the support of the USAID Economic Security Program, the EU, and GIZ.
We recently started working on a new project entitled “Communal Infrastructure for Environment and Tourism Improvement - Lot 2: Accompanying Measures,” aimed at improving the living conditions of people in four Georgian municipalities (Baghdati, Vani, Samtredia, and Kazbegi) through improving the supply of hygienically-sound drinking water and environmentally-safe sanitation infrastructure.
We recently completed a project entitled “Executive Roundtable (ERT) Session on Non-Profit Budgeting Process,” carried out by the USAID HICD Activity and implemented by the Kaizen, Tetra Tech company, aiming to facilitate collaboration, collective learning, and organizational development in the non-profit budgeting process with a cohort of selected organizations, including the Georgian Young Lawyers Association (GYLA), the Georgian Institute of Politics (GIP), and the Georgian Association of Social Workers (GASW).
On September 19-23, the International Consortium on Governmental Financial Management (ICGFM) is hosting the 2022 International Conference at the University Club of Washington DC, offering the first opportunity in over two years for the global PFM community to gather in-person to network and connect with leading professionals and colleagues from across the world, in a unique and distinguished setting.
On July 28, PMCG supported a workshop organized by the EU and the Ministry of Environmental Protection and Agriculture of Georgia as part of the project “Support to Environmental Protection and Fight Against Climate Change in Georgia.”
The beverage manufacturing sector, encompassing the production of fruit juices, mineral water, soft drinks, beer, and spirits, has high export potential and a strong presence of small and medium-sized enterprises (SMEs). From 2017 to 2023, Georgia’s total beverage exports grew at a CAGR of 10%, reaching USD 463 million in 2023. Despite overall export growth, the share of exports to the EU declined significantly during this time, particularly for SMEs. Key challenges include limited access to quality raw materials, outdated machinery, a shortage of skilled labor, and logistical constraints, as well as difficulties in meeting EU standards and DCFTA regulations and limited access to financing for export operations.
Our latest monthly publication, Employment Tracker, offers insights into recent developments in Georgia’s labor market. In March 2025, the number of persons receiving a monthly salary saw a modest increase of 0.3% compared to the same period in 2024. In March 2025, the total number of vacancies posted on jobs.ge decreased by 18% YoY. The administration and management category contributed the most to the decline in vacancies from January to March 2025.
Georgia’s IT services sector has experienced rapid expansion, with tax revenues quadrupling between 2020 and 2023, employment increasing 5.4-fold, and turnover rising 13-fold. Government policies and incentives, such as the International Company Status and FDI Grant Program, have played a key role in attracting foreign investment and driving the sector’s development. Future growth will rely on strategic initiatives such as the successful implementation of GITA 2.0, enhanced IT procurement policies, and stronger collaboration with the private sector, while addressing key challenges like export capabilities and talent retention.
Shortly after Russia’s full-scale invasion of Ukraine in February 2022, maritime trade flows in the Black Sea were significantly reshaped. As the war continued, developments affecting the trade in the Black Sea changed, underscoring the importance of thoroughly analyzing how the region has adapted to such disruptions. This publication builds upon the previous edition, which was released shortly after the outbreak of the war. Now, three years later, our focus shifts to examining how trade dynamics, particularly maritime trade in the Black Sea region, have evolved during this period. Key insights include: Upon the outbreak of the Russo-Ukrainian War, port calls in Ukraine and Russia dropped sharply, while other Black Sea countries briefly benefited from redirected trade flows. By late 2023, port calls in Ukraine had gradually recovered, supported by new shipping routes through Romania and Bulgaria. However, serious threats to commercial shipping remained. Ukraine’s maritime exports and imports fell sharply in 2022, with a slow recovery in imports in 2023. In Russia, maritime imports declined, while exports initially increased in 2022, possibly due to sanctions being ineffective. However, as the sanctions intensified, exports also fell significantly the following year.
Our latest monthly publication, Employment Tracker, offers insights into recent developments in Georgia’s labor market. In February 2025, the annual growth in the number of salaried employees recorded its lowest rate since 2023. In February 2025, the total number of vacancies posted on jobs.ge decreased by 20% YoY. Between December 2024 and February 2025, the Sales and Procurement category saw the highest number of job postings.
In 2024, a total of 6.5 million international visits to Georgia were recorded, a 4.6% increase YoY, driven by a 9.0% rise in overnight trips, while same-day trips declined by 9.2%. In 2024, visits from the EU and the UK totaled 438,414, a 3.8% increase YoY. However, the number of visits from the EU and the UK declined every quarter from Q1 of 2024 onwards. In 2024, there were 2.2 million outbound visits made by Georgian residents, a marginal 0.1% increase YoY. Notably, outbound visits declined YoY in both Q3 and Q4 of 2024.
From the beginning of the war in February 2022 up until 31 December 2024, the international community has committed a total of €399.8 billion to Ukraine, with the majority (52%) designated for financial assistance, 42% for military assistance, and 6% for humanitarian assistance. Of the committed assistance, 67% (€267.2 billion) has already been allocated. The US leads the way in terms of total commitments, with 96% of its pledged assistance already allocated.
In Q1 2025, surveyed Georgian economists negatively assess Georgia’s present economic situation, and their expectations for the next six months are also negative. They believe that the political crisis had the most significant impact on the Georgian economy in Q1 2025. The reduction in foreign assistance, including that from the United States Agency for International Development (USAID), was assessed negatively by 97% of the surveyed economists in terms of its effects on Georgia’s economic and political climate.
Our latest monthly publication, Employment Tracker, offers insights into recent developments in Georgia’s labor market. In January 2025, the number of persons receiving a monthly salary increased by 4% YoY. In January 2025, the total number of vacancies published on jobs.ge decreased by 9% YoY. In Q4 of 2024, labor market efficiency slightly increased as the seasonally adjusted unemployment rate declined slightly, while the job openings rate dropped significantly.
The latest issue of Economic Outlook and Indicators in Georgia, analyzes Vocational Education in Georgia (2019 – 2023): State expenditure on VET tripled between 2017 and 2024, with its share in total education spending rising from 3.1% to 4%. From 2017 to 2023, the number of registered students increased; however, the number of admitted students has not risen correspondingly, leading to a widening gap between registered and admitted students. The transition from secondary school to VET remains challenging, with 10.6 times more students opting for higher education, albeit the number of registered VET students has grown.