Mr. Chairman, Members of Parliament, distinguished guests, representatives of the diplomatic corps and the media.

This is my 6th annual report to Parliament since I was elected by the Georgian people as the President of Georgia.

Our country has experienced many important developments during this time. There have been great successes, as well as failures. We have made many good decisions together, but there were mistakes, too.

We have been fortunate, in recent years, to have the support of faithful friends. At the same time, we were the targets of a brutal attack by a powerful enemy;

Together we savored victories and persevered through hardship.

It was only in the past few years that we began to dream of the impossible-to ask "why not" instead of "why"?

Together, we have endured essential yet painful changes.

For years we made strong progressed and developed our economy, despite economic blockades and cuts to our energy supplies.

But what matters most is that despite all of these obstacles, we managed to move ever closer to our goal-to create a modern and European Georgia. The road we have travelled was not easy. The road ahead will be perilous, too. But together we will succeed.

None of the past 6 years was as dramatic as 2008 or as difficult as 2009.

The difficulties of 2009 were caused by three different but equally devastating problems:

First, the Russian invasion and subsequent military occupation-combined with the permanent threats these pose to our country-hit our investment-driven economy hard.

Then we endured the world's worst economic crisis since the great depression of 1929, which caused a painful economic shock in Georgia, as it did in every country in the world.

And the third cause was the domestic political tensions we experienced in April-May. This cause was of a different nature from the war and the world crisis. Nevertheless, it was during the protests that our country's economic indicators fell to their lowest levels.

Combined, these three events struck a terrible blow to our young, developing economy and undermined the foundations of its earlier development.

Our economy shrank, a great many people lost their jobs, the prospects of employment for those people who tried to find jobs almost disappeared. Many companies faced bankruptcy-some even disappeared. Tens of thousands of our fellow citizens faced crippling debts.

In general, the life of our people became harder and a pessimism spread in parts of our society. And, when the government had to work around the clock to mitigate the impacts of the war and the world crisis-when we raced to save jobs and maintain the social system-the center of our capital was paralyzed by cages and government buildings were blocked. These protests aimed at one thing only: to make the government lose patience and resort to violence.

Despite these dramatic complications, despite the threats that Georgia faced, our country survived as an independent and democratic nation.

Russian intervention aimed to destroy Georgia's statehood and independence.

The world economic crisis threatened to crash our economy, our social welfare system, and our budget-as happened in many countries around the world.

Then, the domestic political tensions brought the stability of our country further into question. The specter of the Nineties looked set to return.

For these reasons, 2009 was the year our state and our society encountered their hardest challenges-to our democratic institutions and our liberal, open political system and economy. We had to respond to these very acute challenges:

-Would we be able to avoid economic collapse?

-Would we be able to save the social security system?

-Would we pay pensions and salaries on time?

-Would we be able to maintain public order, to avoid chaos and disorder?

-Would the sovereignty of our nation remain intact?

-Would we save our statehood?

Our society responded to all these questions in a strong, proud, and patriotic manner. Our state system mobilized to overcome these challenges.

In spite of serious blows, we managed to maintain economic and fiscal stability.

In spite of many of our citizens' hardship, the state was able to honor all of its social security obligations. Pensions and salaries were paid on time.

We managed to do what so many even developed countries could not do-we ensured the stability of our banking system.

In spite of a great threat that risked returning to the era of chaos, we maintained public order, we did not allow violence, and we did not buckle in the fight against criminality and corruption.

But, most importantly we managed to defend the sovereignty and independence of our country. Despite brutal attacks by our aggressive neighbor to the north we maintained Georgia's statehood.

This, my friends, is not a credit only to our government or the Parliament, or to any one party or leader. It is the product of the tireless efforts of all our people and your unwavering loyalty to the motherland.

My dear fellow citizens-I want to express my gratitude to you for ensuring our national dignity the face of such hardships, for your dignity that is rooted in our millennia-long history.

To every citizen of our country:

It was thanks to you that Georgia resisted our enemy in 2008.

It was thanks to you that Georgia survived in 2009.

It will be thanks to you that Georgia recovers in 2010.

I am grateful to you for your bravery, for your defense of our country in its darkest hours - when the columns of Russian tanks poured into Georgia.

I am grateful to you for your hard work, your intellect and your will that made it possible to stand firm during the world economic crisis.

And, most importantly, I am grateful to all of you for your intellect and your strong instinct to care for our country's interests. You helped ensure that the political climate, charged with resistance and opposition, did not become consumed by violence.

My gratitude embraces every political party and each representative of a political movement, be they supporters of the opposition or the government. By behaving peacefully, people from all parties transformed the risks created by the April-May protests into an opportunity to show the world how mature, open, and responsible our society and our institutions have become.

My gratitude embraces the representatives of all ethnicities, starting with Armenian police officers from Samtskhe who literally blocked the Russian tanks with their bodies and stopped their movement towards Akhalkalaki; my gratitude embraces the Ossetians who came to Bakuriani in order to mourn our fallen Olympic athlete.

My gratitude embraces people of all professions - teachers, who, despite offers of larger salaries elsewhere, continue to educate our future generations while living in difficult social conditions; to people employed in the energy sector who often work in very deep snow and in the shadow of conflict in order to restore electricity in Georgia.

My gratitude embraces people without a job or who have recently lost their job-people who despite personal hardship do not neglect their civil responsibilities.

My gratitude embraces our police officers and soldiers, who are always ready to combat criminals and the enemy, because they know that they have their motherland and the security of our families and children to protect.

My gratitude extends to every citizen of Georgia, without exception.

You all managed to make us look to our future with hope. Despite the incredibly difficult problems confronting Georgia, we feel the time has come to start the recovery of our country and our people.

Dear Members of Parliament, please stand up to greet our people, each of our citizens, of all political parties, of all origins, of all religions, of all social backgrounds, who together create one unbreakable nation and strengthen the foundation of Georgian statehood.

The hardships of 2008 and 2009 are behind us. But, it is still too early to speak of the economic crisis in the past tense. Many families still suffer from poverty and unemployment. Many companies, businesses, and entrepreneurs are still striving to overcome the difficulties created during the last two years. Many people cannot find cause for optimism and happiness.

But I can definitely tell you now that the decline has stopped. In every sphere of our economy, there are strong signs of recovery. We have overcome the most difficult stage of the crisis. The key economic indicators have stabilized; plus signs have replaced minus signs.

Today I can say with certainty that our country has started to recover despite all these great difficulties.

This year will be the year of recovery-recovery of our economy as well as of our social and political life.

This road to recovery is the issue I would like to speak about with you today.

Our economy contracted by 5.5 percent in the first three quarters of last year. But in the fourth quarter, it started to emerge from recession and we saw the first signs of positive growth.

Our expectations came true. Our forecast was that the economy would shrink by less than by 4%. Although the final figures are still being tabulated, we expect that the contraction of the economy in 2009 will not exceed 3.8%.

Of course, compared to the 12% growth in previous years, it is still a serious contraction. But it is important to bear in mind that only a handful of governments around the world managed to keep the decline in their economies to less than 4% decrease during the global crisis. We weathered the recession better than any country in our region, each of which suffered between a 10-15 percent decline in GDP.

I do not wish to boast. Because as a result of the expected 3.8% contraction in our economy, the lives of many Georgians have become much harder-and it is the main goal of my administration and government help Georgians overcome these economic losses.

We started our work as the crisis first began to threaten Georgia. Some criticized us for not having a plan. But I would like to remind those who might have forgotten that, in fact, we prepared an economic stimulus package together with the best Georgian and foreign experts. It envisaged 22 billion GEL of investments in Georgia's economy in order to maintain economic activity and-above all-to save jobs.

Our plan sought to make the government the biggest investor in the Georgian economy. I am now in a position to tell you that this plan has been successful.

With the financial support of international finance organizations and our partners, we not only managed to maintain sensitive sectors such as construction, maintaining thousands of jobs-but some sectors, like agriculture for example, grew compared with preceding years.

2010 is the year of economic recovery. The growth will be moderate, because the world is still in a post-crisis period. We aim to expand the economy by 2-3%.

Our main emphasis will now be on the continuation of the liberal economic reforms and ensuring that they are irreversible, in order to maintain our position and make progress in attracting investments.

It is our commitment to a liberal economy and the minimal necessary involvement of government in the economy, as well as our low taxes, that has made Georgia appearing to foreign investors' radars. These investors trust Georgia, and Georgia today is considered a country where it is possible to achieve success.

Our commitment to liberal market principles propelled us to 11th place in 2009 in the the ease of doing business, among all countries in the world. We stand, furthermore, in first place in Central and Eastern Europe.

According to the Forbes Tax Load Index, Georgia is ranked in 4th place, after Qatar, the United Arab Emirates, and Hong Kong.

And we are number 1 in fighting corruption during the past five years, according to Transparency International.

Imagine how many successful countries we have left behind, according to these ratings! But that doesn't mean we are as wealthy as they are. We have a long way to go before we reach their level of development. But we now have the chance to one day reach those levels, despite some very tough years. This is a sign that we are still standing strong on the road to recovery. This is the chance we can use to improve our people's living conditions.

Only by building a liberal economy will we be able to fully ensure the sustained recovery of our nation. Only in this way will we create a society of boundless opportunities, free of corruption and bureaucratic pressures. Only then will we be open to economic development. This will make Georgia more attractive, for both Georgian and foreign investors.

I want to tell you about a young American family, Amy and Eric Binders. These young painters visited Georgia two or three years ago. They walked with their backpacks across the lands of our neighboring countries and came to Georgia.

Quite unexpectedly, they discovered a country that is not only very hospitable and home to very warm people-but where there is no corruption, where the taxes are low, where every business procedure is easy, and where bureaucracy doesn't impede entrepreneurs.

They decided that this is the country where they would love to start a new life and a new business. They sold their house in America, took their three sons and moved to Georgia. They opened a very small pizza-hut in Saburtalo and started to bake pizza.

Today, they have many customers, they are building a new house in Tbilisi, their sons go to a Georgian school, speak Georgian fluently and say that Georgia is their second home.

The Binders are already citizens of Georgia. Quite by chance I saw a program on their marvelous story on Georgian TV and I decided to invite them to the Parliament today.

They are here now and I ask you to welcome them.

Amy and Eric I want to tell your children that Georgia will never turn from its liberal economic and political course, and for your children and for their generation of Georgian children, our country will bring more opportunities in the future.

The fact that Georgia is on a path to economic recovery is evident not only from figures and fiscal indicators, not only from international rankings, but more importantly it is evident in concrete projects. These projects have already started to be realized and their scope will have a great influence on the Georgian economy.

During the crisis period, the construction of the Kutaisi and Rustavi metallurgy factories were completed, as were the "Radisson," "Sheraton," "Tbilisi Central Railway Station," and other developments.

The Sheraton Hotel in Batumi is the first example of such a high-level hotel in the Caucasus that is not located in a capital city.

The investments also continued in our coastal port of Poti an in our free economic zones, including in Kutaisi.

Investment in real-estate projects continue throughout Georgia, starting with Batumi and Anaklia and finishing with Samtskhe-Javakheti.

A shining example of this is the 'Up Town Tbilisi' project, which rises higher and higher each day, and that will create the biggest business and trading center in the region.

We raised more than 700 million USD of direct foreign investment in 2009.

I ask you to welcome a great patriot of Georgia, a man, the likes of whom add fame and honor to our country, Mr Shota Apxazava.

I want to tell you about Shota. Shota has created a Formula 3 team, which successfully competes in tournaments across the globe representing Georgia.

My main point is that the members of the team are Russians from Moscow who love Georgia. They compete and win under the Georgian flag. They stand in contrast to the Russians standing only 35 km from here, who tear down Georgian flags, and who repeatedly flout international laws and cease-fire agreements.

In speaking about our nation's recovery, it is inevitable that we speak about energy issues. Georgia has experienced long periods of darkness as a result of being a nation dependent on foreign-energy supplies. This foreign dependence was directly translated into weakness, especially when one of our neighbors used it as a weapon against us,

We all remember the mysterious gas pipeline explosions and the fights over firewood among people on the streets of Tbilisi. Then I promised you that we would turn Georgia into an energy self-sufficient state, to ensure our long-term energy security.

At first glance, this idea looked unhinged. Today I am proud to report to the people that this promise has been fulfilled!

Our energy supply routes have been diversified and our country is one of the most energy-independent countries in the world.

Our energy system is competitive and is attractive to private investors.

Despite the crisis and the period of hardship, investments in the Energy sector of Georgia did not cease and even increased. We have started to complete projects that were unimaginable 20 years ago.

Investors have committed to building power plants to provide a total of 130 Mega Watts of electricity. The memorandums for building a further 1,300 Mega Watts of capacity have been signed. This makes about 2 billion dollars investment in total. This project will turn Georgia into an energy hub, a big energy exporter and player in the region.

Despite the difficult years, construction of the 43 Mega Watt "Mtkvar Hesi", 78 Mega vat "Paravani Hesi" and "Bakhvi hesi" has commenced over the past few years. Construction has also begun on the 500 Kilo Watt electricity line to connect the Georgian and Turkish energy systems.

Despite the difficult years, construction of the 43 Mega vat "Mtkvar Hesi", 78 Mega vat "Paravani Hesi" and "Bakhvi hesi" has been started during last year. Also construction of the of the 500 Kilo vat electric line has been started which have to connect Georgian and Turkish energy systems.

There are concrete signs of recovery, important indicators to show that we are on the right track and have better prospects for the future. We have created tens of thousands of jobs for the coming years. However, this does not mean that all our problems are solved. And it does not mean that we can be satisfied.

A lot of Georgians still live in poverty. This poverty is worse in the outlying regions of Georgia. Many villages face real difficulties.

Accordingly, the development of agriculture, employment, gasification, effective healthcare, a strong educational system and the right infrastructure remain the main priorities for me and the whole of my government.

We are already making progress.

To stimulate our economy and combat the crisis, the government has stepped up investment in agriculture. As a result, in 2009, we enjoyed an increase in agricultural output, in contrast to the overall economic picture.

There are concrete examples of this improvement:

For instance, for the first time in the last decade, we have had a successful wine vintage. For the first time, we have managed to bring in a full harvest. For the first time, we have created the right conditions for storing grapes. As a result, we have become a net exporter again. At Christmas, we had Georgian-not imported-wine on our tables. We will continue making progress next year and will be able to store even more grapes.

Last year we also had a more successful tangerine harvest than in previous years. Approximately 50 million were harvested in a month. We not only sold the entire harvest, but we entered new markets as well.

We have new agricultural exports. For example, the export of mutton increased from 25,000 to 266,000 units. It is worth mentioning that demand in our wool and mutton markets exceeds 1 million units. There is still room for significant growth. So we need to focus more attention on this industry.

Aggregate agricultural exports increased by 25%, but more important is the fact that we now serve a wider range of geographic markets.

Our entrepreneurs have started to enter new markets...new markets like Saudi Arabia, Jordan, Iran, United Arab Emirates, the European Union, and Central Asia.

Tangerines were exported to only two countries previously-Azerbaijan and Ukraine. This year we exported to 10 countries, including EU countries, Turkey, and Belarus.

Despite being a difficult year, in 2009 we opened:

·New greenhouse initiatives,

·Swiss-style livestock farms in the Racha region,

·An apple concentrate factory in Shida Kartli,

We have made important investments in:

·A Natakhtari meat-processing factory, which has significantly improved meat processing in Georgia.

·A Marneuli food enterprise, in which the EBRD is making investments.

There is significant interest from investors and international finance institutions to develop our cannery industry.

These projects will create several thousand jobs in our villages.

Of course difficulties will remain, but it is important that Georgian agriculture becomes competitive and attractive to investors.

Today we have a guest in Georgia. A man who was not born here, but who plays a distinguished role in our nation's life. A man whose name is well known in the world and who created a leading baby food company-Mr. Calusse Hippie-please welcome him.

Healthy children all over the world-in Hong-Kong, Australia, Europe and America-have grown up on Hippie's food.

Despite the war and economic crisis, he invested in the Shida Kartli Apple concentrate factory, which now produces Hippie's products. Today, the best Hippie food is produced in Georgia.

He is also a painter. And in addition to the important task of feeding children, he has one more task-to teach painting to Georgian painters. He is a professor in our Art Academy and his books are used by Georgian students.

What he is doing is more than business. His factory receives apples from several thousand inhabitants currently in South Ossetia. For most of them, it is their only source of income.

Today, Clausse Hippie is a symbol of the recovery of Georgian agriculture and the Georgian economy in general. Please, welcome him.

Infrastructure

Despite the difficult times, the development of our infrastructure has remained a priority. Good roads are the basis of a good economy. Roads bring business, roads bring tourism, roads bring employment.

That is why we continue to build roads in Georgia, in our villages and regions, on a national and transnational scale.

The Vaziani-Gombori-Telavi highway is being built. It will shorten the Tbilisi-Telavi commute to only 40 minutes.

The Sveneti-Ruisi road is also being built.

We will soon start building the bypass road between Kobuleti and Batumi, rehabilitating Rikoti Tunnel, and building the Kutaisi-Zestaponi-Samtredia highway.

Education

It is impossible to talk about the long-term improvement of our country, about its modernization and progress, if the educational system is not developed in tandem.

Education is what creates human capital for the future in Georgia-the most treasured and valuable asset of our country.

That is why a considerable part of my address is dedicated to the second wave of education reform, which is already under way.

The first wave of reform focused on the restoration of the educational infrastructure that was totally devastated: the rebuilding of schools, the creation of new teaching materials, and a technical foundation. Without that, it would be impossible even to think about developing our system of education.

For the second stage of education reform, new priorities have been defined. Particular attention is being paid to improving the level of high-school education.

New initiatives are being implemented that will deliver a higher level of education in schools.

Of particular note will be the school diplomas given to students who attain basic competence in the key disciplines. A student who finishes school will automatically get a certificate confirming his/her graduation. However, if a student wishes to progress to an institution of higher education, he or she will have to confirm their minimal required competence in all the key disciplines at examination centers.

On the one hand, this will increase attendance levels in high school, and on the other hand, after finishing high school, students will have a broader education in all disciplines.

The Government of Georgia is also giving teachers the opportunity to work on their professional development, and we are financing this process through special vouchers.

In 2010, we will introduce voluntary certification of teachers. The certified teachers will get higher salaries that will serve to improve levels of motivation.

Our children must live and study in a safe environment. No mother should be afraid to send her children to school.

Therefore, within the existing safe-school concept, the following measures will be introduced: prohibition of the use of cash at schools; implementation of a student plastic card system; in larger cities, creating different levels within schools if the infrastructure allows for it.

In order to improve respect for the law, which will help to prevent crime among teenagers, regular meetings will be held between representatives of the prosecutor's office, the legal support service, and the police.

In accordance with the law, school cafes will be run by private companies that will have an obligation to serve food in accordance with defined standards, and with the help of recognized nutritional experts. The Ministry of Education will strictly control food standards.

The national education plan also includes such reforms in information technology, the teaching of world culture, and in civil defense and security.

Physical development will be replaced by sports lessons. Taking into account school and regional sports infrastructure, schools will specialize in specific sports. School leagues will be created in various sports.

Education is the only effective weapon in fighting unemployment. Therefore, it is of particular importance to increase opportunities for professional training. We will create modern professional education centers to cater for 20,000 adults each year. Priority will be given to those professions that are most in demand.

Another very important innovation will be introduced in the education system to ensure that each citizen of Georgia, regardless of his or her ethnic background, can be an equal member of society. This year, for the first time, representatives of ethnic minorities living in Georgia will benefit from special quotas when entering institutions of higher education. These will encourage people to enter higher education and make the most of their potential.

Healthcare

2008 and 2009 considerably hampered our plans for developing Georgia's healthcare system. Our 100 New Hospitals Project was hit especially badly.

This project was possible in the economic conditions that existed before the war and the world crisis, when real estate prices were high and Georgia enjoyed record levels of foreign investment.

The war and the world crisis erased this opportunity.

The Georgian healthcare system needs development and improvement. We are not going to wait for the next economic boom or postpone the introduction of high-quality healthcare for our citizens.

Therefore, the government has developed a new program, under which one of the main investors in building hospitals will be the state, together with the private sector. For the first stage, the building of new world-class hospitals will begin in Tbilisi, in the Dighomi cluster, where 11 new hospitals will be built. The state will build them and then transfer their ownership and management to hospital personnel.

At the same time, as the world economy stabilizes, private initiatives and interest in the Georgian hospital sector is growing.

But in order to develop the healthcare system, good hospitals alone are not enough, if our citizens cannot afford treatment there.

Successful healthcare includes the effective functioning of the insurance system.

Let me remind you that in 2006, only 48,000 individuals had insurance in Georgia. Since 2007, the state has become involved in protecting people.

Today, 1,500,000 individuals have insurance in Georgia. And of these, more than 1,200,000 are insured by the state.

However, not everything is working as it should. Very often there are problems between individuals and insurance companies. Usually individuals come out on the losing side of the argument.

Therefore, we have made a decision to give the state the job of regulating such debates, and we are going to create a special mediation service that will be an independent impartial agency to adjudicate between individuals/hospitals and the insurance sector. The mediation service will review individuals' complaints.

The year 2010 should be not only be the year of economic recovery, it should be a year of political growth, too. Last year I presented the second wave of democratic reform that envisaged important political reforms.

Today I want to report on the implementation of these reforms:

I proposed to create a constitutional commission in order to start work on a revised constitution, which will guarantee:

·A Stronger Parliament

·Effectiveness of the President and Government

·Independence of the judiciary system

·Protection of human rights

The Constitutional commission is actively working. The commission consists of non-governmental organizations, political parties, Parliament, the President, and Supreme Court representatives, while the chairman of the commission is a candidate proposed by the opposition. The Venice Commission is also involved in the process. Within the commission, different views are exchanged and compete against one other. And that is exactly as things should be in a democratic system.

The most important thing is that the work of the commission is focused on the main task it was given at the outset: drafting a more democratic constitution with more democratic institutions.

I promised that measures would be taken to create a more effective judiciary system. And we have done what we said we would do:

·The President no longer appoints judges - fulfilled

·The President is no longer the chairman or indeed a member of the Supreme Council of Justice - fulfilled

·The opposition has a representative on the Supreme Council of Justice, which allows the Parliamentary minority to control the judicial system and assist the reform of the Supreme Council of Justice - fulfilled

·In the Supreme Council of Justice judges are in the majority - fulfilled

·Judges are no longer appointed for life - fulfilled

·A new Code of Criminal Procedure has been adopted - fulfilled

·A System of jury trial has been established - fulfilled! This year a jury trial will be held for the first time in Georgian history

·The Prohibition of ex-parte communication and tougher punishment for trying to influence the court by representatives of government - fulfilled

·Strict 60-day terms for investigations - fulfilled

·Allowing only voluntary testimony by witnesses at the preliminary investigation stage - fulfilled

·The establishment of a quicker judicial system based on the principle of competition - fulfilled

In order to create a more just electoral environment, I promised that we would start to work with opposition on a new Electoral Code. This was done and the coordination of the process was implemented by the National Democratic Institute.

We have changed the Chairman of the Election Commission according to a process that was agreed with the opposition.

I promised that the Tbilisi mayoral elections would be direct - The Tbilisi mayoral elections and other local elections are scheduled for May 30 this year; the citizens of Tbilisi for the first time will elect the mayor of the capital directly.

This is a crucial milestone towards the democratization of Georgia. This milestone is even more astonishing when you think that right up until 2003, the mayors of Tbilisi and Poti and the governors of all districts were appointed by the President.

The coming self-government elections will be an important test for our democracy and civic culture.

I want to categorically warn all state officials that they must ensure that the elections are held in a free and democratic environment.

I promised that we would strengthen the law forbidding the use of administrative resources: This promise also has been fulfilled. The coming election will be the first under this new law and I promise that in the event of any violation the strictest possible penalties will be enforced.

I want to use this opportunity and tell our European partners the following: We want these elections to mark a major step forward in Georgia's democratization. We want Georgia to move closer to Europe through these elections. Therefore we ask you to send your observers so that they can monitor both the election campaign and the freedom and fairness of election itself.

I promised to support the development of political parties: This promise has been fulfilled. The Parliament passed changes to the law so that financial support to all qualified political parties was increased.

Political party financing increased and the financing of the "United National Movement" was reduced.

A foundation was established to finance the research and development activities of political parties and non-governmental organizations.

I promised to strengthen the institutional guarantees for the involvement of the opposition in the country's governance. In this respect the following promises have been achieved:

·An increased role for the opposition in the spheres of security and defence on the basis of civil control - fulfilled.

·The inclusion of opposition leaders in the working process of the National Security Council - fulfilled.

·The strengthening the role of the opposition in the Parliamentary and governmental decision-making processes - fulfilled

·Offering opposition members positions as deputy ministers - the offer awaits the acceptance of the opposition.

One of the main promises of the second wave of democracy was to support media pluralism. Specifically:

·A change in the legislation by which representative of the opposition will be appointed as members of Georgia's National Communications Commission - fulfilled

·Legislative guarantees that Georgian Public Broadcasting will hold political talk-shows and all the major parties will have an equal opportunity to participate - fulfilled

·The reform of the Board of Trustees of Georgian Public Broadcasting; as a result, the ruling party and opposition should have an equal number of votes and the representative of the civil sector should be involved in the workings of the Board - fulfilled

·An increase in the powers of the Board of Trustees of Georgian Public Broadcasting - fulfilled

·The creation of a special TV channel to show only political activities, Parliament sessions, and the full press-conferences of political parties and so on - this was just fulfilled.

·The right for all TV channels to broadcast via satellite - fulfilled

Media freedom and pluralism is the foundation for democratic progress. It is very important that all TV channels, regardless of their size and position, broadcast without any obstacles.

But this is not always possible, because of the small size of the Georgian advertising market and limited financial resources. Almost all private TV channels exist in a difficult financial context and heavy tax debts. This is especially true for small regional TV channels.

All of you remember that last year the regional TV channel of Adjara, "25 Channel," was nearly closed due of their tax burden. This TV channel was known for its sharp criticism of the government.

For the sake of the development of Georgian democracy, it is unacceptable for TV channels to be closed because they do not enough money. Because of this, the state offered tax relief and restructuring for 25 Channel.

But other private TV Channels are experiencing similar problems. And the restructuring of the tax debts for 25 Channel was a temporary help. It is clear that this small TV channel will not have the resources in some months to pay its debts.

So I propose a new initiative by which all Georgian TV channels, whether regional or national, will be granted a tax amnesty so that they are able to develop stronger foundations. The Georgian democratic and political culture will be enhanced by their development.

I do not want to bother you with politics. I am sure that-especially in recent weeks-our society is tired of endless political squabbling.

I want to share with you just one political desire.

In the spring of the last year, Georgian society achieved a milestone without precedent in the Caucasus. We managed to undertake street demonstrations against a backdrop of profound political disagreement without violence, despite many provocations.

Our citizens have shown an unprecedented level of political maturity, which has not been typical for Caucasian political culture until now.

This spring all political actors should try to do one more thing that has not happened in the Caucasus yet-and which will prove that we really deserve to be called a European Democracy: Let's hold free and democratic elections in such a way that the losing side, whoever it is, congratulates the winner in a dignified and civilized manner-instead of fomenting protests and obstructive the governance of our country.

Has the time not come for our politicians to become more civilized? Has the time not come for politicians to respect society more and not to sacrifice the needs of the people for the sake of their own ambitions?

I am sure that if we try we will manage to turn our politics into civilized, European politics. The people are wise and they will not allow us to support those at the extremes of Georgian politics.

Our country is struggling to strengthen democracy, to protect freedom, to maintain statehood, and to overcome the economic crisis.

We fight this struggle with our values as our banner and our main weapon. We are fortified by our belief that freedom is the greatest treasure that the nation can possess. The belief that openness, democracy, and liberalism are the only right ingredients for the success of our nation, that the answer to occupation and aggression is not war and violence, but peace and development.

Our country faces major challenges. Our country is occupied and the enemy is not going to retreat.

In such a situation the decisive factor is our cohesiveness, our nation's unity and our ability to fortify one another.

We all know very well that the Georgian nation is undefeatable-and this is known to our enemy, too.

We all know very well that the Georgian nation is talented and brave-and this is known to our enemy, too.

We all know very well that the Georgian nation is bigger in reality than what meets the eye-and this, too, is known to our enemy.

There are many Georgians living all over the world, and they love Georgia. Even though they are far from Georgia, they are all ready to serve their country.

Two such persons are our guests today. Let us welcome 28-year-old Vera Qobalia. She is from Sokhumi. She was forced to leave Sokhumi. Her aim was not to live abroad, but while being a refugee she found new opportunities in Vancouver, Canada.

She started practically everything from scratch. But talent, will, and Georgian resolve did their part. Vera opened a Georgian bakery that to date has sold more than one million Georgian baguettes.

Another of our guests is Turkish-born Ismet Dindar, whose Georgian name is Ismet Mikeladze. One of the most successful Turkish cardiac surgeons, he has achieved success and recognition. But Georgia is always in his dreams.

He grew up in his second homeland, so close and yet so far from his real one.

Today Ismet is a citizen of Georgia, too, and his life and business are connected to Georgia.

Georgia is strong with such Georgians. Georgia is proud with such Georgians.

But our enemy believes that it is easy to isolate us from each other. Our enemy believes that we cannot distinguish between black and white, and that it is easy to make a fool of us.

But that is where he makes mistakes. Makes mistakes, because now we know exactly where we are heading. We know exactly what kind of tomorrow we want. We know which kind country we want our children to grow up in.

They are mistaken because the past shows us how Georgian society remembers the 25th of February. Georgia is no longer the country where the 25th of February was celebrated because no one remembered what happened in 1921.

They have been hiding it from us for a long time, but now we all know how our "coreligionist" enemy fought against our church, how they took away our autocephaly, destroyed our icons and murdered patriotic clerics. We remember the 25th of February, but we also remember 180 years have passed since the dark day when they captured and deported from Georgia the bishops of Gaenati and Kutaisi only because they were protesting against the Russification of Georgia. Dositeos Kutateli was tortured and murdered, and Eqvtime Gaenateli never saw his homeland again.

We as a nation have learned enough lessons, accumulated enough knowledge to identify, without erring, who is our friend and who is our foe. To see clearly which way we want to head and develop.

Our choice is to build a civilized, modern, democratic, and European Georgia. Our foreign policy is to return to the European family and integrate into the North Atlantic Treaty Organization.

Our aim is to protect civilized and democratic values, whether it be in Iraq or Afghanistan.

The Georgian people already have chosen their way. This way brings us to greater democracy, well-being and modernization.

This way brings us to recovery.

But this way will not be easy. We have to overcome many obstacles. Many enemies will block our way and try to derail us. But if each of us will remember where we are and where we were-who we are and what our ancestors dreamed of, dreams for which they sacrificed themselves-we will never doubt that we are right.

Now we have a chance to fulfill our dream, for which our ancestors sacrificed their lives-this dream is an independent, secure, and successful Georgia.

But let's think for a second what the alternative to this route is? Lost independence and a return to the times when Russian bosses came to Georgia to enjoy Georgian wine and Cognac, to enjoy Georgia as an ethnographic museum and Georgians as its exhibits with their cuisine, music, and dancing? It was prohibited for us to exist as a state entity, as the country of David and Tamar. Cognac and cheap air tickets were good, but no Georgian town had a water-supply system, no highway was built to a high standard. We existed as a mere province.

No, this is not our choice.

I have no doubt that one day we will have unrestricted flights to Moscow, and normal relations with our northern neighbor. No, they will not be flights for 37 rubbles-but believe me, it is much better to pay the market price to fly to Moscow, and arrive there as free Europeans, than to pay cheap prices, but carry the status of a vassal.

But before that, we have to take care of our country, we have to continue to build our economy, we have to achieve our political and democratic recovery.

May Lord bless us and our country.

Press Office
of the President of Georgia