European Commission proposes €46 million assistance to Georgia

The European Commission on Thursday proposed €46 million ($61 million) as macro-financial assistance (MFA) to Georgia to support its economic recovery.

The proposed aid is part of a comprehensive package from the European Union totaling €500 million ($666.85 million) to support Georgia's recovery stemming from the 2008 armed conflict with Russia and the global crisis.

Two-speed Recovery to Extend into 2011, Says IMF

The two-speed global economic recovery is likely to dominate 2011, with weak growth in advanced economies barely enough to bring down unemployment and emerging markets facing the challenges of success, including how to avoid overheating and handle strong capital inflows, the IMF’s Chief Economist, Olivier Blanchard, said.

In an assessment of the global economy at the end of 2010, and the prospects for 2011, Blanchard said that countries should continue to focus on rebalancing their economies in the coming year, including structural measures and exchange rate adjustments.

“Without this economic rebalancing, there will be no healthy recovery,” he told IMF Survey, the online magazine of the International Monetary Fund (IMF).

In an interview, Blanchard talked about the central role of the Group of Twenty (G-20) advanced and emerging market economies in helping during the global crisis and the need for continued cooperation to build on the recovery, as well as the prospects for both Europe and low-income countries. Following is the text of the interview:

Read the interview on the IMF Survey Magazine.