(a) strengthening multi-level governance as it affects both the central level and municipal communities with special emphasis on ways to enhance the involvement of local stakeholders;
(b) consolidation of the partnership between all the parties involved in regional development, and
(c) co-financing through financial contribution by those involved in the implementation of regional development programmes and projects.
Article 373.
1. The Parties shall support and strengthen the involvement of local level authorities in regional policy cooperation including cross-border cooperation and the related management structures, enhance cooperation through the establishment of an enabling reciprocal legislative framework, sustain and develop capacity building measures and promote the strengthening of cross-border and regional economic and business networks.
2. The Parties will cooperate to consolidate the institutional and operational capacities of Georgian institutions in the fields of regional development and land use planning by, inter alia:
(a) improving inter-institutional coordination in particular the mechanism of vertical and horizontal interaction of central and local public authorities in the process of development and implementation of regional policies;
(b) developing the capacity of local public authorities to promote reciprocal cross-border cooperation in compliance with EU principles and practices;
(c) sharing knowledge, information and best practices on regional development policies to promote economic well-being for local communities and uniform development of regions.
Article 374.
1. The Parties shall strengthen and encourage development of cross-border cooperation in other areas covered by this Agreement such as, inter alia, transport, energy, communication networks, culture, education, tourism, and health.
2. The Parties shall intensify cooperation between their regions in the form of transnational and inter-regional programmes, encouraging the participation of Georgian regions in European regional structures and organizations and promoting their economic and institutional development by implementing projects of common interest.
3. These activities will take place in the context of:
(a) continuing territorial cooperation with European regions, including through trans-national and cross-border cooperation programmes;
(b) cooperation within the framework of the Eastern Partnership, with EU bodies including the Committee of the Regions and participation in various European regional projects and initiatives;
(c) cooperation with, inter alia, the European Economic and Social Committee, and the European Spatial Planning Observation Network.
Article 375.
A regular dialogue will take place on the issues covered by this Chapter.
Chapter 22. Civil Protection
Article 376.
The Parties shall develop and strengthen their cooperation on natural and man-made disasters. Cooperation shall be conducted considering the interests of the Parties on the basis of equality and mutual benefit, as well as taking into account the interdependence existing between the Parties and multilateral activities in the field.
Article 377.
Cooperation shall aim at improving the prevention of, preparation for and response to natural and man-made disasters.
Article 378.
The Parties shall, inter alia, exchange information and expertise and implement joint activities on bilateral basis and/or within the framework of multilateral programmes. Cooperation can take place, inter alia, through the implementation of specific agreements and/or administrative arrangements in this field concluded between the Parties.
Article 379.
The cooperation may cover the following objectives:
(a) exchange and regularly update contact details in order to ensure continuity of dialogue and in order to be able to contact each other on a 24-hour basis;
(b) facilitating mutual assistance in case of major emergencies, as appropriate and subject to the availability of sufficient resources;
(c) exchanging on a 24-hour basis early warnings and updated information on large scale emergencies affecting the EU or Georgia, including requests for and offers of assistance; (d) exchanging information on the provision of assistance by the Parties to third countries for emergencies where the EU Civil Protection Mechanism is activated;
(e) cooperating on Host Nation Support when requesting/providing assistance;
(f) exchange of best practices and guidelines in the field of disaster prevention, preparedness and response;
(g) cooperating on Disaster Risk Reduction by addressing, inter alia, institutional linkages and advocacy; information, education and communication; best practices aiming at preventing or mitigating the impact of natural hazards;
(h) cooperating on improving the knowledge base on disasters and on hazard and risk assessment for disaster management;
(i) cooperating on the assessment of the environmental and public health impact of disasters;
(j) inviting experts to specific technical workshops and symposia on civil protection issues;
(k) inviting, on a case-by-case basis, observers to specific exercises and trainings organised by the EU and/or Georgia, and
(l) strengthening cooperation on the most effective use of available civil protection capabilities.
Chapter 23. Participation In European Union Agencies and Programmes
Article 380.
Georgia shall be allowed to participate in all agencies of the Union open to the participation of Georgia in accordance with the relevant provisions establishing those agencies. Georgia shall enter into separate agreements with the EU to enable its participation in each such agency including the amount of its financial contribution.
Article 381.
Georgia shall be allowed to participate in all current and future programmes of the Union opened to the participation of Georgia in accordance with the relevant provisions adopting those programmes. Georgia's participation in the programmes of the Union shall be in accordance with the provisions laid down in Protocol III to this Agreement on a Framework Agreement between the European Union and Georgia on the general principles for the participation of Georgia in Union programmes.
Article 382.
The Parties will conduct a regular dialogue on the participation of Georgia in EU programmes and agencies. In particular, the EU shall inform Georgia in the case of establishment of new EU agencies and new programmes of the Union, as well as regarding changes in the terms of participation in the programmes of the Union and agencies, mentioned in Articles 380 and 381 of this Agreement.
Title VII. FINANCIAL ASSISTANCE, AND ANTI-FRAUD AND CONTROL PROVISIONS
Chapter 1. Financial Assistance
Article 383.
Georgia shall benefit from financial assistance through the relevant EU funding mechanisms and instruments. Georgia may also benefit from cooperation with the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD) and other international financial institutions. The financial assistance will contribute to achieving the objectives of this Agreement and will be provided in accordance with this Chapter.
Article 384.
The main principles of financial assistance shall be set out in the relevant EU financial instruments' regulations.
Article 385.
The priority areas of the EU financial assistance agreed by the Parties shall be laid down in annual action programmes based, whenever applicable on multi-annual frameworks which reflect agreed policy priorities. The amounts of assistance established in those programmes shall take into account Georgia's needs, sector capacities and progress with reforms, in particular in areas covered by this Agreement.
Article 386.
In order to ensure optimum use of the resources available, the Parties shall endeavour to ensure that EU assistance is implemented in close cooperation and coordination with other donor countries, donor organisations and international financial institutions, and in line with international principles of aid effectiveness.
Article 387.
The fundamental legal, administrative and technical basis of financial assistance is established within the framework of relevant agreements between the Parties.
Article 388.
The Association Council shall be informed of the progress and implementation of financial assistance and its impact upon pursuing the objectives of this Agreement. To that end, the relevant bodies of the Parties shall provide relevant monitoring and evaluation information on a mutual and continuous basis.
Article 389.
The Parties shall implement assistance in accordance with the principles of sound financial management and cooperate in the protection of the financial interests of the EU and of Georgia in accordance with Chapter 2 (Anti-Fraud and Control Provisions) of this Title.
Chapter 2. Anti-fraud and Control Provisions
Article 390. Definitions
For the purposes of this Chapter, the definitions set out in Protocol IV to this Agreement shall apply.
Article 391. Scope
This Chapter shall be applicable to any further agreement or financing instrument to be concluded between the Parties, and any other EU financing instrument to which Georgia may be associated, without prejudice to any other additional clauses covering audits, on-the-spot checks, inspections, controls, and anti-fraud measures, including those conducted by the European Court of Auditors and the European Anti-Fraud Office (OLAF).
Article 392. Measures to Prevent and Fight Fraud, Corruption and Any other Illegal Activities
The Parties shall take effective measures to prevent and fight fraud, corruption and any other illegal activities in connection with the implementation of EU funds, inter alia by means of mutual administrative assistance and mutual legal assistance in the fields covered by this Agreement.
Article 393. Exchange of Information and Further Cooperation at Operational Level
1. For the purposes of proper implementation of this Chapter, the competent Georgian and EU authorities shall regularly exchange information and, at the request of one of the Parties, shall conduct consultations.
2. OLAF may agree with competent Georgian counterparts in accordance with Georgian legislation on further cooperation in the field of anti-fraud, including operational arrangements with the Georgian authorities.
3. For the transfer and processing of personal data, Article 14 of Title III (Freedom, Security and Justice) of this Agreement shall apply.
Article 394. Prevention of Fraud, Corruption and Irregularities
1. The EU and Georgian authorities shall check regularly that the operations financed with EU funds have been properly implemented. They shall take any appropriate measures to prevent and remedy irregularities and fraud.
2. The EU and Georgian authorities shall take any appropriate measures to prevent and remedy any active or passive corruption practices and exclude conflict of interest at any stage of the procedures related to the implementation of EU funds.
3. The Georgian authorities shall inform the European Commission of any prevention measures taken.
4. The European Commission shall be entitled to obtain evidence in accordance with Article 56 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities.
5. In particular, it shall also be entitled to obtain evidence that procedures on procurement and grants satisfy the principles of transparency, equal treatment and non-discrimination, prevent any conflict of interest, offer guarantees equivalent to internationally accepted standards and ensure compliance with the provisions of sound financial management.
6. In accordance with their own procedures, the Parties will provide each other with any information related to the implementation of EU funds and shall inform each other without delay of any substantial change in their procedures or systems.
Article 395. Legal Proceedings, Investigation and Prosecution
The Georgian authorities shall bring legal proceedings, including, if appropriate, investigation and prosecution of suspected and actual cases of fraud, corruption or any other irregularity, including conflict of interest, following national or EU controls. Where appropriate OLAF may assist the competent Georgian authorities in this task.
Article 396. Communication of Fraud, Corruption and Irregularities
1. The Georgian authorities shall transmit to the European Commission without delay any information which has come to their notice of actual cases of fraud or corruption and shall inform the European Commission without delay of any other irregularity, including conflict of interest, in connection with the implementation of EU funds. In case of suspicion of fraud and corruption, OLAF and the European Commission shall also be informed.
2. The Georgian authorities shall also report on all measures taken in connection with facts communicated under this Article. Should there be no fraud, corruption, or any other irregularity to report, the Georgian authorities shall inform the European Commission following the end of each calendar year.
Article 397. Audits
1. The European Commission and the European Court of Auditors are entitled to examine whether all expenditure related to the implementation of EU funds has been incurred in a lawful and regular manner and whether the financial management has been sound.
2. Audits shall be carried out on the basis both of commitments undertaken and payments made. They shall be based on records and, if necessary, performed on-the-spot on the premises of any entity which manages or takes part in the implementation of EU funds. Those audits may be carried out before the closure of the accounts for the financial year in question and for a period of five years from the date of payment of the balance.
3. European Commission inspectors or other persons mandated by the European Commission or the European Court of Auditors may conduct documentary or on-the-spot checks and audits on the premises of any entity which manages or takes part in the implementation of EU funds and of their subcontractors in Georgia.
4. The European Commission's inspectors or other persons mandated by the European Commission or the European Court of Auditors shall have appropriate access to sites, works and documents in order to carry out such audits, including in electronic form. That right of access should be communicated to all public institutions of Georgia and shall be stated explicitly in the contracts concluded to implement the instruments referred to in this Agreement.
5. The checks and audits described above are applicable to all contractors and subcontractors who have received EU funds. In the performance of their tasks, the European Court of Auditors and the Georgian audit bodies shall cooperate in a spirit of trust while maintaining their independence.
Article 398. On-the-spot Checks
1. Within the framework of this Agreement, OLAF shall be authorised to carry out on-the-spot checks and inspections in order to protect the EU's financial interests in accordance with the provisions of Council Regulation (EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities.
2. On-the-spot checks and inspections shall be prepared and conducted by OLAF in close cooperation with the competent Georgian authorities taking into account relevant Georgian legislation.
3. The Georgian authorities shall be notified in good time of the object, purpose and legal basis of the checks and inspections, so that they can provide all the requisite help. To that end, officials of the competent Georgian authorities may participate in the on-the-spot checks and inspections.
4. If the Georgian authorities concerned express their interest, the on-the-spot checks and inspections shall be carried out jointly by OLAF and them.
5. Where an economic operator resists an on-the-spot check or inspection, the Georgian authorities, acting in accordance with national legislation, shall give OLAF such assistance, as it needs to allow it to discharge its duty in carrying out an on-the-spot check or inspection.
Article 399. Administrative Measures and Penalties
Without prejudice of the Georgian legislation, administrative measures and penalties may be imposed by the European Commission in accordance with Regulation (EC, Euratom) No 1605/2002 and Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities and with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests.
Article 400. Recovery
1. The Georgian authorities shall take any appropriate measure to implement the provisions mentioned below regarding the recovery of EU funds unduly paid to the financing governmental agency.
2. Where the Georgian authorities are entrusted with the implementation of EU funds the European Commission is entitled to recover EU funds unduly paid, in particular through financial corrections. The European Commission shall take into account the measures taken by the Georgian authorities to prevent the loss of the EU funds concerned.
3. The European Commission shall consult with Georgia on the matter before taking any decision on recovery. Disputes on recovery will be discussed in the Association Council.
4. Where the European Commission implements EU funds directly or indirectly by entrusting budget implementation tasks to third parties, decisions taken by the European Commission within the scope of this Title, which impose pecuniary obligation on persons other than States, shall be enforceable in Georgia in accordance with the following principles:
(a) Enforcement shall be governed by the rules of civil procedure in force in Georgia. The order for its enforcement shall be appended to the decision, without other formality than verification of the authenticity of the decision, by the national authority which the government of Georgia shall designate for this purpose and shall make known to the European Commission and to the Court of Justice of the European Union.
(b) When those formalities have been completed on application by the party concerned, the latter may proceed to enforcement in accordance with Georgian law, by bringing the matter directly before the competent authority.
(c) Enforcement may be suspended only by a decision of the Court of Justice of the European Union. However, the courts of Georgia concerned shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner.
5. The enforcement order shall be issued, without any further control than verification of the authenticity of the act, by the authorities designated by the Georgian government. Enforcement shall take place in accordance with Georgian rules of procedure. The legality of the enforcement decision of the pertinent EU authorities shall be subject to control by the Court of Justice of the European Union.
6. Judgments given by the Court of Justice of the European Union pursuant to an arbitration clause in a contract within the scope of this Chapter shall be enforceable on the same terms.
Article 401. Confidentiality
Information communicated or acquired in any form under this Chapter shall be covered by professional secrecy and protected in the same way as similar information is protected by Georgian law and by the corresponding provisions applicable to the EU institutions. Such information may not be communicated to persons other than those in the EU institutions, in the Member States or in Georgia whose functions require them to know it, nor may it be used for purposes other than to ensure effective protection of the Parties' financial interests.
Article 402. Approximation of Legislation
Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXXIV to this Agreement in accordance with the provisions of that Annex.
Title VIII. INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Chapter 1. Institutional Framework
Article 403.
Political and policy dialogue between the Parties, including on issues related to sectoral cooperation, may take place at any level. Periodic high-level policy dialogue shall take place within the Association Council established in Article 404 and within the framework of regular meetings between representatives of both Parties at ministerial level by mutual agreement. Association Council
Article 404.
1. An Association Council is hereby established. It shall supervise and monitor the application and implementation of this Agreement and periodically review the functioning of this Agreement in the light of its objectives.
2. The Association Council shall meet at ministerial level and at regular intervals, at least once a year, and when circumstances require. The Association Council may meet in any configuration, by mutual agreement.
3. In addition to supervising and monitoring the application and implementation of this Agreement, the Association Council shall examine any major issues arising within the framework of this Agreement, and any other bilateral or international issues of mutual interest.
Article 405.
1. The Association Council shall consist of members of the Council of the European Union and members of the European Commission, on the one hand, and of members of the Government of Georgia, on the other.
2. The Association Council shall establish its own rules of procedure.
3. The Association Council shall be chaired in turn by a representative of the Union and a representative of Georgia.
4. Where appropriate, and by mutual agreement, representatives of other bodies of the Parties may take part as observers in the work of the Association Council.
Article 406.
1. For the purpose of attaining the objectives of this Agreement, the Association Council shall have the power to take decisions within the scope of this Agreement. The decisions shall be binding upon the Parties, which shall take appropriate measures, including if necessary action by bodies established under this Agreement, in line with provisions of this Agreement to implement the decisions taken. The Association Council may also make recommendations. It shall adopt its decisions and recommendations by agreement between the Parties following the completion of the respective internal procedures of the Parties, as appropriate.
2. In line with the objective of the gradual approximation of Georgia's legislation to that of the EU laid down in this Agreement, the Association Council will be a forum for exchange of information on selected European Union and Georgia legislative acts both under preparation and in force, and on implementation, enforcement and compliance measures.
3. In accordance with paragraph 1 of this Article, the Association Council shall have the power to update or amend the Annexes to this Agreement, without prejudice to any specific provisions under Title IV (Trade and Trade-related Matters) of this Agreement.
Article 407. Association Committee
1. An Association Committee is hereby established. It shall assist the Association Council in the performance of its duties and functions.
2. The Association Committee shall be composed of representatives of the Parties, in principle at senior civil servant level.
3. The Association Committee shall be chaired in turn by a representative of the EU and a representative of Georgia.
Article 408.
1. The Association Council shall determine in its rules of procedure the duties and functioning of the Association Committee, whose responsibilities shall include the preparation of meetings of the Association Council. The Association Committee shall meet at least once a year and when the Parties agree that circumstances so require.
2. The Association Council may delegate to the Association Committee any of its powers, including the power to take binding decisions.
3. The Association Committee shall have the power to adopt decisions in the cases provided for in this Agreement and in areas in which the Association Council has delegated powers to it and as stipulated in Article 406(1) of this Agreement. These decisions shall be binding upon the Parties, which shall take appropriate measures to implement them. The Association Committee shall adopt its decisions by agreement between the Parties, taking into account the respective internal procedures.
4. The Association Committee shall meet in a specific configuration to address all issues related to Title IV (Trade and Trade-related Matters) of this Agreement. The Association Committee shall meet in that configuration at least once a year.
Article 409. Special Committees, Sub-committees and Bodies
1. The Association Committee shall be assisted by sub-committees established under this Agreement.
2. The Association Council may decide to set up any special committee or body in specific areas necessary for the implementation of this Agreement, and shall determine the composition, duties and functioning of such special committees or bodies. In addition, such special committees or bodies may hold discussions on any matter that they consider relevant without prejudice to any of the specific provisions of Title IV (Trade and Trade-related Matters) of this Agreement.
3. The Association Committee may also create sub-committees, including to take stock of progress achieved in the regular dialogues referred to in Title V (Economic cooperation) and Title VI (Other Cooperation Policies) of this Agreement.
4. The sub-committees shall have the powers to take decisions in the cases provided for in this Agreement. They shall report on their activities to the Association Committee regularly, as required.
5. The sub-committees established under Title IV (Trade and Trade-related Matters) of this Agreement shall inform the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, of the date and agenda of their meetings sufficiently in advance of their meetings. They shall report on their activities at each regular meeting of the Association Committee in Trade configuration.
6. The existence of any of the sub-committees shall not prevent either Party from bringing any matter directly to the Association Committee, including in its Trade configuration.
Article 410. Parliamentary Association Committee
1. A Parliamentary Association Committee is hereby established. It shall be a forum for Members of the European Parliament and of the Parliament of Georgia to meet and exchange views. It shall meet at intervals which it shall itself determine.
2. The Parliamentary Association Committee shall consist of Members of the European Parliament, on the one hand, and of Members of the Parliament of Georgia, on the other.
3. The Parliamentary Association Committee shall establish its own rules of procedure.
4. The Parliamentary Association Committee shall be chaired in turn by a representative of the European Parliament and a representative of the Georgian Parliament respectively, in accordance with the provisions to be laid down in its rules of procedure.