What is at stake?

One key figure in Georgia’s pro-European narrative is Sulkhan-Saba Orbeliani, an aristocrat who undertook an epic diplomatic mission to the power centers of Europe in the early 18th century, seeking protection against the besieging Persian Empire. He even met French King Louis XIV in Versailles, but his entreaties were in vain. European rulers considered Georgia to be just impossibly distant.

Things are different in the beginning of the 21st century. Georgia is not that distant anymore, and Europe is, slowly but steadily, getting ready to provide protection. For this the EU set up the European Peace Facility in 2021 aiming towards military aid to partner countries, Georgia among them. The assistance in 2022 was 12,75 million Euro, in 2023 Georgia received 20 million Euro under the Peace Facility, and for 2024 30 million Euro were allocated for Georgia. These funds are frozen now. We all know why. The stakes for Georgia cannot be higher.

On June 20, the KAS Tbilisi office, together with the Georgian Institute of Politics (GIP), hosted another round of KAS-GIP Foreign Policy Talks, based on a policy paper by Professor Tracey German on the future of the South Caucasus. The paper discusses the basic question: “Reviving regional cooperation or fostering authoritarian regionalism?”

The roundtable, which commented on the paper, brought together experts from Georgia, Armenia, and Azerbaijan. It highlighted the need to promote informed debates across the region and facilitate public discussion on the future of the South Caucasus in times of great uncertainty.

Progress in Armenia-Azerbaijani Delimitation Talks

Armenia and Azerbaijan have made more progress in ongoing negotiations on the delimitation of their border. Although they missed the previously agreed July 1 deadline for a "Joint Activity Regulation," both governments claim that "negotiations continue constructively" and that a relevant common document will be presented "soon." Some Armenian experts argue that missing the deadline demonstrates Azerbaijan's reluctance to continue the border delimitation and demarcation process.

Pashinyan pushes for Changes to the Armenian Constitution
On June 20, Armenian Prime Minister Nikol Pashinyan directed an already established ad hoc body to start drafting a new constitution, set to be ready for approval by the end of 2026. In January, Pashinyan claimed that a new constitution would make Armenia "more competitive and more viable in the new geopolitical and regional conditions." However, some members of civil society and the opposition have criticized the move, accusing Pashinyan of acting under Azerbaijani pressure.

Armenia and the United States discuss Construction of New Nuclear Power Plant

To diversify its energy portfolio and reduce dependence on Russia, the Armenian government announced substantive talks with Washington to build a new nuclear power plant (NPP). The current Armenian NPP at Metsamor, supplying about 40% of Armenia's electricity, was built in the 1970s and is scheduled for decommissioning in 2036. Although Rosatom has been contracted to extend the life of Metsamor, with talks ongoing about building a new reactor at the aging facility, Washington has announced its intention to support Armenia in diversifying its energy production. Secretary of Armenia’s Security Council, Armen Grigoryan, stated that once internal U.S. procedures are completed, work will begin.

EU Ambassador to Georgia: “Georgia’s EU Accession Process has been halted”

Departing from the soft language of diplomacy, EU ambassador to Georgia Paweł Herczyński stated on July 9 that Georgia’s EU accession process has been halted. The EU’s direct support to the Georgian government will gradually diminish and shift to support for Georgian civil society and media. If the situation in the country deteriorates further, additional measures will be considered. Herczyński stressed that the “Law on Transparency of Foreign Influence” and the anti-Western, anti-European rhetoric are incompatible with Georgia’s aim of joining the European Union.

Changes in Pension Fund Legislation raise Fears of Misuse

The Georgian Parliament has passed another controversial regulation, this time related to the pension fund system. The legislation centralizes decision-making power in a new "governing council" and allows the pension fund to invest in non-financial assets, prompting concerns about citizens' savings. Critics, including the Georgian President, argue that granting the Prime Minister authority to appoint council members increases government control over the funds. Economist Akaki Tsomaia warned that the law could lead to the disappearance of pension savings.

Armenian Foreign Minister for Consultations in Georgia

On July 3, Armenian Foreign Minister Ararat Mirzoyan visited Georgia for an official meeting with Georgian Prime Minister Irakli Kobakhidze, Speaker of the Parliament Shalva Papuashvili, and Georgian Foreign Minister Ilia Darchiashvili. They discussed regional security, Armenia's efforts to normalize relations with its neighbors, and explored cooperation on multilateral platforms as well as the potential for unblocking regional economic and transport links.

Georgian National Football Team's Performance inspires the Nation

The Georgian National Football team was received enthusiastically by their fans upon returning to Georgia from the European Championship in Germany after an outstanding performance, which no experts had predicted would see them survive the group stage. The team provided a deep sense of pride during these difficult times for the country

President Ilham Aliyev emphasized significant progress in Azerbaijani-Armenian peace talks, suggesting the possibility of reaching agreement on key points of a peace deal "in the next few months." However, Aliyev reiterated his stance that without changes to the Armenian constitution, he would not sign any peace agreement. In response to his repeated demands for constitutional changes in Armenia, the Armenian foreign ministry accused Aliyev of "torpedoing the peace process."

Council of Foreign Ministers of the Organization of Turkic States held in Shusha/Shushi

At a meeting of the Organization of Turkish States (OTS) in Shusha/Shushi, Nagorno-Karabakh, President Aliyev expressed his aspiration to elevate the OTS into a prominent global entity. The OTS includes Azerbaijan, Kyrgyzstan, Kazakhstan, Turkey, and Uzbekistan, with Hungary, Turkmenistan, and the Turkish Republic of Northern Cyprus participating as observers. Baku's initiatives to strengthen the OTS coincide with deteriorating relations with the West. Hungarian Prime Minister Viktor Orban attended the meeting.