The new design of the European energy map has brought the South Caucasian region in the spotlight. As stressed by the Foreign Affairs Committee, in a draft resolution from the European Parliament they adopted in early April, there is now a dire need for the European Union to steer a regional strategy for stability, prosperity and conflict resolution. In spite of the obvious distinct realities of each country in political, economic and security terms, the high level of interdependence in the Caucasian area in matters related to regional conflicts, economic aspects and energy assets, makes a good case for the setting of a regional strategy. Although Armenia, Azerbaijan and Georgia have been involved, since 2004, by the European Neighbourhood Policy, this broad framework of cooperation did not allow a sufficient deepening of the cooperation with the South Caucasus states. It is now time for the European Union to play a greater role in stabilizing this geopolitically complex region in order to foster a nonexistent regional cooperation between those three states. Despite looming political tensions and structural economic shortages, the implementation of the Eastern Partnership alongside the coming into effect of the Lisbon Treaty provide the European Union with the right tools and a major chance to elaborate a comprehensive and global plan for South Caucasus
[...] This trend must be supported by the EC. However, the economic development of Armenia and Georgia has been affected by the general economic crisis (Macro financial assistance was provided to the two countries in 2009), thus weakening their economic structures. The EC must provide assistance to ensure these partners carry on restructuring their economies. However, the EU must also aim at strengthening public finance management in order to foster economic growth, thereby contributing to reduce poverty and regional imbalances. Ensuring energy security in the region The EU must acknowledge the strategic geopolitical location of the South Caucasus and its increasing importance as an energy, transport and communications corridor connecting the Caspian region and Central Asia with Europe. [...]
[...] Hence, South Caucasus countries could be described as “partly free”. - Economic situation: all three countries have some natural resources (mines for Armenia and Georgia, Gas for Azerbaijan) and have a large agricultural sector (in terms of employment). Azerbaijan is the front runner in this field as it has been exponentially investing in agricultural scientific research. Their growth rates over the past decade have diverged, Azerbaijan having done better in economic terms due to its important energy resources. - Social situation: all three countries rank between 80th and 90th on the HDI, which means their social situations are quite similar. [...]
[...] Financial envelope The resources allocated to the south caucasus region should be divided between Armenia, Azerbaijan and Georgia, according to priorities as follows: - Conflict Resolution: 1.Setting of a security cooperation structure involving actors from the wider Black Sea region M 2.Resorting to private structure (international mediation or negotiation ones) M 3.Reinforcing presence on the ground M 4.Setting a structure coordinating the diplomatic action on the EU toward the region M - Promoting democracy: 1.Backing civil society M 2.Provide knowledge and administrative structure to ensure further consolidation of democracy M 3.Organizing and monitoring elections M - Economic reform and social development: 1. credit lines (loans, grants) M 2. energy related measures (strategical studies and cooperation) M 3. diffusion of ecological norms (technology transfer, regulation, legal and technical assistance) . [...]
[...] Thus, the conflicts undermine the European Union democratic and energetic interests in the south Caucasus, and jeopardize the prospects of integrating these countries, that is why the European Union cannot let the status quo prevail in this situation. Promoting Democratic Practices and Consolidating Institutions European Commission's assistance in the region must also focus on the promotion of political stability in the south Caucasus. The European Union could only benefit in the consolidation of democracy at its threshold, not only in terms of security but also in terms of political and economical cooperation opportunities. [...]
[...] EC assistance should be offered to support the process of market and regulatory reform by providing support and technical assistance for administrative capacity building. Implementation modalities Conflict Resolution The issue of conflict resolution is thus central in the European Union's regional strategy because the deepening of political and economic ties between the three south Caucasian states and with the European Union will depend on the establishment of a climate of peace. The resolution of the frozen conflicts undermining the development of the south Caucasian states will not prove easy, because of the geostrategic nature of the region, and because of Russian's interests in the south Caucasus, that is why the European Union should adopt a step by step and comprehensive approach of the issues which are at stakes here. [...]
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