The German Business Association (DWV) organized a business forum on October 10 at the Pullman Axis Towers in Tbilisi to discuss the economic and geopolitical implications Georgia faces ahead of the upcoming parliamentary election on October 26. This election is a turning point in modern Georgian history, as the country’s pro-Western path has been questioned by recent political developments and legislation changes. The forum focused on understanding the impact of these political shifts on Georgia’s future economic prospects.
The forum featured prominent speakers including Mr. Peter Fischer, the German Ambassador in Georgia; Mr. Sebastian Staske, from the German Economic Team; Dr. Hans Gutbrod a professor at Ilia State University and Mr. Sascha Terrenes, Chairman of Governing Council of the German Business Association. Thomas Kimmeswenger was also present to greet the public.
In his speech, Ambassador Fischer stressed the importance of the upcoming election. He said, “This is not Germany’s election; you choose.” He also highlighted that Georgia’s entrance into the European Union will require meeting specific criteria for the modern age and that historical ties by themselves would not be enough to secure membership. He warned that legislation, such as the foreign influence transparency act, poses serious obstacles to Georgian EU aspirations. He stressed that the law restricts liberties and contradicts basic European principles. Ambassador Fischer mentioned that they were sending letters to their citizens in Georgia warning them of potential political instability. They also advised caution in the days after the elections. They hope that everything will go smoothly, but they are prepared for anything and are discussing possible risks. Ambassador Fischer stressed that while Germany and EU want Georgia to succeed, it is ultimately up to Georgia whether they choose to maintain democracy and follow the Western path.
The ambassador also referred to the 30-year-old cooperation between Germany, Georgia and noted that Georgia ranks fifth in the world for per capita aid from Germany. He expressed concern about the current situation and expressed disappointment at claims that Germany and partners were no longer Georgia’s friends.
Sebastian Staske presented a detailed analysis of Georgia’s economy, including risks such as national debt and currency devaluation. He expressed concerns about the future stability of Georgia’s economy, and questioned whether it would turn to Chinese loan if EU aid were frozen. He said, “Good luck” in response to the ambassador’s statement. Staske also touched on the tourism sector and the changing demographics of tourists and their spending.
Hans Gutbrod compared Georgia’s ranking on the Bertelsmann Transformation Index BTI to other countries. His data showed how systemic decisions can influence economic outcomes. He also stressed the importance of making good choices to improve Georgia’s economic standing. Gutbrod also highlighted the structural risks in tourism and agriculture, and provided real-world example of how Georgian business could benefit from adopting EU standards.
The forum concluded with an open Q&A, where the panelists discussed possible post-election scenarios as well as their economic implications. The discussion concluded with a comparison between the European Union and BRICS model, which the ambassador dismissed as “as different night and day.”
The event concluded with a networking session where participants were able to interact with the speakers. The German Business Association, who regularly organizes these forums for their members, once again facilitated an important conversation on Georgia’s Future, offering both insights and a call for action for a country that is at a crossroads.
By Sofia Bochoidze
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