With the signature of the Framework Agreement in 2007, Georgia and the EU bank started long and fruitful cooperation that will celebrate its 10th anniversary this year. A clear vision of developing the country towards closer integration with the European Union has been at the heart of the joint efforts. Mandated by the European Union, the EIB is funding infrastructure projects, the development of the local private sector and climate action investments. In these past years, 19 operations in a wide range of sectors of the economy have been supported at a steadily growing pace. In particular, following the signature of the Association Agreement and the Deep and Comprehensive Free Trade Area between Georgia and the European Union, the EIB stepped up its support and, at the advent of the 10th anniversary of starting its activities in Georgia, effectively doubled its lending portfolio in the country.

The South Caucasus is the key strategic region between the Black Sea and Caspian Sea and the regional powers of Iran, Turkey and Russia and is the land bridge between Asia and Europe with vital hydrocarbon routes to international markets. This volume examines the resulting geopolitical positioning of Georgia, a pivotal state and lynchpin of the region, illustrating how and why Georgia's foreign policy is 'multi-vectored', facing potential challenges from Russia, int ernal and external nationalisms, the possible break-up of the European project and EU support and uncertainty over the US commitment to the traditional liberal international order.

Georgia stands on the threshold of gaining candidate status for membership of the EU. Paradoxically, however, this is precisely the moment when Georgia seems to be drifting away from the Union. A few months after applying for candidate status, the parliament sought to adopt the so-called 'foreign agents' law, which would have restricted Georgia's democratic space and jeopardised its European future. After intense popular pressure, the law has been repealed, but the underlying problem has not gone away. The government seeks to de-legitimise domestic and external critics in the run up to elections next year, while taking an ambivalent position concerning Russia's aggression of Ukraine. These developments are symptoms of deeper flaws in Georgia's political culture, marked by stark polarisation and illiberal narratives. Domestic and external pressure needs to be sustained for the government to take determined action to achieve EU candidate status. The EU has invested deeply in Georgia's democracy and should not give up on it. Overwhelming public support for Georgia's European integration gives the EU leverage to ensure that the government recommits to a path of substantial reform. Progress on this path will be decisive for the future of Georgia and for peace and stability in the EU's Eastern neighbourhood. It will also provide a critical test of the EU's capacity to support partner countries in accomplishing their European goal.

Georgia is one of the United States' closest partners among the states that gained their independence after the USSR collapsed in 1991. With a history of strong economic aid and security cooperation, the United States has deepened its strategic partnership with Georgia since Russia's 2008 invasion of Georgia and 2014 invasion of Ukraine. U.S. policy expressly supports Georgia's sovereignty and territorial integrity within its internationally recognized borders, and Georgia is a leading recipient of U.S. aid to Europe and Eurasia. Many observers consider Georgia to be one of the most democratic states in the post-Soviet region, even as the country faces ongoing governance challenges. The center-left Georgian Dream-Democratic Georgia party (GD) holds a dominant political position, with about 70% of seats in parliament. Although Georgia faces high rates of poverty and underemployment, its economy has performed better since 2017 than it did in the previous four years.

"Georgia's post-election transition from the Saakashvili era is proving bumpier than many hoped, with Bidzina Ivanishvili's new coalition government under pressure from enormous public expectations, but without a clear strategy for Georgia's future. A strong helping hand from the EU could make the difference between Georgia growing closer to Europe or turning away. Georgia is still on the long transition from being a nearly-failed state only a decade ago to the well-functioning democracy it hopes to become. Up to now, the EU's Georgia policy has been on autopilot. Now it needs to step up its involvement in the country. This means building trust with the new government and aligning its assistance closely with Georgia's needs - whilst maintaining an impartial assessment of the political developments on the ground. In "Georgia's bumpy transition: how the EU can help" Jana Kobzova argues that Europe should: Send experts to match the financial assistance that it already gives, for instance in areas like regional development and agriculture. Georgia needs such expertise to underpin sustainable growth across its economy -- Be critical of the government when necessary, based on a non-partisan appraisal of the developments on the ground. The treatment of government's political opponents should remain in a spotlight. Europe also needs to communicate better with Georgia's people and its politicians, outlining opportunities from closer integration -- Support the economy, especially shorter term growth orientated initiatives. A failure to improving living standards may lead to the government undermining Georgia's fragile democratic institutions in search of popularity. "Georgia's main political forces face a choice: either they learn to coexist and adopt a democratic political culture or they continue their zero-sum approach to politics. The former would bring Georgia closer to Europe; the latter risks alienating not only the country's society but also its Western allies." Jana Kobzova"--Publisher's description.

The EU can do little to achieve its policy objectives in its Eastern neighborhood without facing the issue of secessionist conflicts. This paper deals with EU policy towards Georgia and the secessionist regions of Abkhazia and South Ossetia. It discusses the reasons for and constraints on EU policies, their effects and perception in the secessionist entities. The paper concludes with recommendations on how the EU can contribute to conflict resolution in Georgia through a greater inclusion of the conflict regions into the European Neighborhood Policy.