The controversy surrounding Georgia’s proposed “foreign agents” law has raised concerns among investors and the European Bank for Reconstruction and Development (EBRD). The draft legislation, which would require organizations that receive more than 20% of their funding from abroad to register as agents of foreign influence, has led to protests in the country and criticism from critics who argue it is authoritarian and inspired by the Kremlin.
The EBRD President, Odile Renaud-Basso, expressed surprise at the law’s reemergence and warned that its potential impact could negatively affect Georgia’s economy and investor confidence. She called for dialogue with their partners to address these concerns and mitigate any negative economic consequences.
Georgia has seen economic benefits from implementing reforms in the past, but the current tensions surrounding the draft law could discourage private sector investment in the country. Brussels and Washington have urged Tbilisi to reconsider the law to avoid damaging its chances of European Union membership and a closer Euro-Atlantic integration.
The EBRD’s annual meetings are set to begin in Armenia on May 14, where Renaud-Basso will likely discuss these concerns with other international leaders and investors.