Georgia’s controversial draft “foreign agents” law is causing tensions that may negatively impact the country’s economy and investor confidence, warns the president of the European Bank for Reconstruction and Development (EBRD), Odile Renaud-Basso. The proposed legislation requires organizations that receive more than 20% of their funding from abroad to register as agents of foreign influence, leading to protests in the country.
Critics argue that the law is authoritarian and influenced by the Kremlin. Brussels and Washington have urged Tbilisi to reconsider it to avoid damaging its chances of European Union membership and closer Euro-Atlantic integration. Renaud-Basso expressed surprise at the law’s reemergence and raised concerns about its potential impact on Georgia’s economy.
Georgia has seen economic benefits from implementing reforms in the past, but private sector investment could be discouraged by current tensions surrounding the draft law. Renaud-Basso emphasized the need for dialogue with partners to address these concerns and mitigate any negative economic consequences. The EBRD’s annual meetings are set to begin in Armenia on May 14.