ITALY TO GIVE ONLY 1.6M EUROS IN BILATERAL AID FOR GEORGIA

C O N F I D E N T I A L ROME 001273 SIPDIS EUR/ACE FOR WASHELESKI E.O. 12958: DECL: 10/15/2018 TAGS: EAID EFIN GG KMCA PREL RS KCRS SUBJECT: ITALY TO GIVE ONLY 1.6M EUROS IN BILATERAL AID FOR GEORGIA REF: A. SECSTATE 109212 ¶B. ROME 1219 Classified By: Economic Minister Counselor Tom Delare for reasons 1.4 (b) and (d). ¶1. (C) On 16 October Econoff delivered reftel A demarche on assistance to Georgia to Stefano Soliman, Deputy Director for Balkans/ Middle East Development Cooperation at the MFA. According to Soliman, Italy will provide a minimum of 1.6 million euros in bilateral general aid for displaced persons in Georgia. Italy will not provide funds for budget support (this kind of support had been suggested by the Joint Needs Assessment). Though conceivable, Soliman also said he was "ninety-nine percent certain," that Italy would not pledge funds beyond this 1.6 million euro commitment at the donors' conference on 22 October. ¶2. (C) Soliman confirmed previously reported cuts (reftel B) of about sixty percent in Italian foreign assistance over the coming year. He said the GOI is trying to cut its administrative costs to lessen the burden of these reductions on aid recipients. Soliman said the GOI would likely focus its efforts on preserving funding for certain projects (rural development, the environment, and cultural heritage) and geographic areas (the Balkans, Middle East, and North Africa), while cutting deeply elsewhere. These cuts will be likely finalized by the end of the year. SPOGLI