Georgia's instability has hurt relations with Europe and slowed economic growth after the pro-Moscow ruling party won national elections.

Political unrest has gripped the country since the Georgian Dream party won elections last year. Allegations of electoral fraud, vote-buying, and intimidation of voters have triggered political violence and widespread protests.

Western leaders have expressed concerns that Tbilisi is drifting closer to Moscow after parliamentary elections on October 26 and presidential elections on December 14. Protesters have accused Georgian Dream of derailing Tbilisi's bid to join the European Union.

The European Council suspended parts of the EU-Georgia visa facilitation agreement today. This may require Georgian diplomats and officials to apply for visas when traveling to the EU.

"Fundamental rights and democratic values are core principles of EU integration," Tomasz Siemoniak, Polish Minister of the Interior and Administration, said. "Officials that represent a country which trample down these values should not benefit from easier access to the EU."

Prime Minister Irakli Kobakhidze has said that the Caucasus nation will delay EU accession talks until 2028. The country's Moscow-friendly authorities have supported a pro-Russia agenda.

US Accuses Ruling Party of Eroding Democracy

The US imposed sanctions on Bidzina Ivanishvili, the party's founder, on December 27, accusing him of eroding Georgia's democracy and the country's future for personal profits and business interests in Russia.

"Under Ivanishvili's leadership, Georgian Dream has advanced the interests of the Kremlin by derailing Georgia's Euro-Atlantic trajectory," US Secretary of State Anthony Blinken said. This is "in direct contradiction to what was envisioned by the Georgian people and the Georgian Constitution," he said.

Former Prime Minister and opposition member Giorgi Gakharia suffered injuries in an alleged politically motivated attack on January 15. The pro-Russian Georgian Dream denied any involvement in the assault in Batumi on the Black Sea coast.

"Georgia is embroiled in a significant political crisis marked by widespread protests, allegations of democratic backsliding," the Research Center for Security and Geopolitical Studies wrote on December 16. "The combination of democratic erosion, perceived pro-Russian policies, and public dissatisfaction with delayed EU integration has created fertile ground for the current unrest."

FDI, GDP Suffer from Georgian Political Unrest

Political uncertainty has impacted international confidence in the country. Foreign direct investment dropped to an estimated $966.3 million fourth quarter from $1.9 billion in 2023, data from the National Statistics Office showed.

The Washington-based International Monetary Fund has forecasted GDP growth of 6% in 2025, down from 8.5% in 2024. A consensus of 60 Georgian economists put GDP at 3.6% this year.

"Political upheavals and exchange rate fluctuations had the greatest impact on Georgia’s economy in the fourth quarter of 2024," Tbilisi-based Policy and Management Consulting Group wrote. "Political instability and fluctuations in the exchange rate are expected to be the most significant factors influencing Georgia’s economic growth in 2025."

Georgia's Lari fell to its weakest level against the dollar in two years after the decision by the ruling party to delay talks on EU membership. The dollar has climbed 6% against the Lari in the past six months.

Ruling Party Laws Weigh on Georgia's Instability

Since becoming the president on December 29, Mikheil Kavelashvili, a former soccer player and right-wing populist, has signed off on more repressive laws. He signed bills that repress political protests and facilitate the dismissal of employers due to political motives.

Kavelashvili is widely known for his anti-Western and far-right political statements and his opposition to the LGBTQI+ community in Georgia. He was first elected as a member of parliament in 2016 when he represented Georgian Dream until he left in 2022 to co-found the People's Power party, with which he is still affiliated.

"Our history clearly shows that, after countless struggles to defend our homeland and traditions, peace has always been one of the main goals and values for the Georgian people," Kavelashvili said during his inaugural address.

Georgia's political opposition rejected Kavelashvili's bid for the presidency and boycotted the parliament. Salome Zourabichvili, the former pro-Western head of state, labeled Kavelashvili's presidency a "parody."

Protests Escalate Georgian Political Instability

Political unrest, including protests, has persisted. Police arrested more than 400 people since Kavelashvili became president, a mostly symbolic role.

The protesters, with some showing red cards in recognition of Kavelashvili's soccer career, demanded the unconditional release of political prisoners. They have called for new elections. Hundreds of Georgian companies engaged in a nationwide strike on January 15.

"The EU deplores these repressive actions against protesters, media representatives and opposition leaders and calls for the immediate release of all detained individuals," it said in statement on December 10. "The EU demands an end to widespread intimidation, political persecution, reported torture and ill-treatment of citizens."

Elene Khoshtaria, a well-known member of the political opposition, called the protests a "national resistance movement." Prime Minister Kobakhidze described the protesters collectively as "violent groups" controlled by a "liberal fascist opposition."